Sproule Market Report
Carbon Market Outlook 2024
Sproule’s latest Carbon Market Outlook Report explores the dynamic landscape of carbon market initiatives worldwide, offering an in-depth analysis of current projects, regulatory developments, and cross-border collaboration. The report examines the significant policy measures, technological advancements, and investment strategies shaping decarbonization pathways. Additionally, it underscores the critical role of global co-operation and public support in achieving a low-carbon economy.
Key Points:
- Maturing Markets: Carbon markets are maturing and will play a critical role in decarbonization initiatives with greater liquidity, quality, and price stability of carbon credits.
- Technological Advancements: Technological advancements and innovation will remain key to ensuring the competitiveness of decarbonization projects.
- Quality & Growth: The growing scrutiny over carbon credits and the rising demand for high-quality Carbon Dioxide Removal credits (CDRs) emphasize the importance of quality, reliability, and long-term agreements in the carbon market. The pivotal turn of 2023 toward higher-quality offsets is expected to catalyze further investments in carbon market projects.
- Major Transactions: Major energy companies and energy transition-oriented infrastructure funds are driving M&A activity in the CCUS space. CCUS startups are gaining traction as companies integrate carbon capture technologies into their sustainability strategies.
- Compliance and Voluntary Market Trends: Stable growth in the compliance market outpaces the voluntary market during volatile conditions. Investment continues to pour into compliance credit markets due to the relative pricing stability compared to voluntary markets.
- Policy & Regional Landscapes: Early-stage development and pilot projects in different nations showcase a commitment to integrating carbon market mechanisms in climate strategies. Pioneering mechanisms, such as the carbon border adjustment mechanism, will accelerate the pace of countries and industry embracing net zero initiatives.
