News after the first day at the Innovate4Climate Conference 2023. Interesting contents, from Climate Finance to the Integrity Voluntary Carbon Markets, from Article 6.8 to New Climate Technologies (recordings will be available only in the coming days, "Watch On-Demand").
But Carbon Credit Markets would like to antecipate the contents of the following two presentations to you:
(1) "State and Trends of Carbon Pricing 2023" report lauched by the World Bank
(2) "The Legal Nature of Carbon Credits: What Are You Trading?"
So, today we will go over (1) and tomorrow the later. Stay tuned, either here at our LinkedIn page or directly at the source www.carboncreditmarkets.com .
The World Bank Group has been tracking carbon markets for two decades, and 2023 marks ten years since the first State and Trends report, following developments across the globe of all forms of direct carbon pricing – Emissions Trading Systems (ETS), carbon taxes and carbon crediting.
These were the findings presented yesterday by Joseph Joe Pryor, senior climate change specialist at The World Bank:
Globally, 73 carbon taxes and ETS in operation
Despite the global / European energy crisis, new ETSs and carbon taxes were launched
Record high revenues approached USD 100 billion
ETSs and carbon taxes prices trends varied, in some cases substantially, but overall 2018-2023 trend is up (EU ETS, United States RGGI & California, China etc)
Prices remained below the levels required to achieve Paris Agreement goals
Carbon price corridor: USD 61 - 122 per t/CO2eq.
Carbon crediting activity slowed, trends differing accross categories
Main Independent crediting mechanisms and standards in 2022: 42% Verified Carbon Standard (Verra); 32% Clean Development Mechanism; 8,2% Gold Standard; 4,6% American Carbon Registry
Trends for carbon credits prices varied, but overall declined
2023 Q1 (2022 Q1 as reference): approx. USD per t/CO2eq. 12 (22) Removals; 4 (8) Avoidance; 3 (6) Corsia; 2,5 (7) Renewable Energy and 2,5 (15) Nature Based
In addition, developments on Article 6 suggest a pathway for international carbon markets, but more work is needed to unlock its full potential.
Click at the image below to download the report. The bullet points in the Executive Summary (pages 8-9) are very interesting. Also interesting the indivual country summaries (pages 59-69)
Here, a World Bank post.
