The carbon market has grown to an estimated value of $270 billion, putting it on institutional investors' radar as an asset class of interest. Recently, financial markets have become influenced by investors, companies and governments to also strive to limit the effects of climate change. As a result, the carbon market – where emission credits are bought and sold and derivatives are traded – has been expanding rapidly. Carbon credits are now tracked and traded like any other commodity, with the potential of the market being a major driver of global economic decarbonization by pricing carbon and encouraging polluters to reduce their emissions. Click to read a great article on MSCI.
