Can Carbon Markets Finally Grow and Make a Difference?

Carbon markets have faced significant challenges in recent years, with scandals in 2022 and 2023 eroding public trust. However, COP30 may mark a turning point.

Restoring Confidence

New rules and oversight aim to make carbon credits more reliable. The Integrity Council and stricter guidelines are working to rebuild trust. Yet, these changes come with trade-offs:

• Reduced Credit Issuance: Some projects, like forest conservation schemes, now issue 90% fewer credits per hectare, threatening financial viability.
• Low Prices: Carbon credits sold for just $5.30 per tonne in Q1 2025, a sharp decline from previous years.

Signs of Progress

Despite challenges, there are positive developments:

• Regulated Markets: 40 countries now have regulated carbon markets.
• Aviation Industry: The CORSIA scheme is set to launch by 2027, potentially creating massive demand for carbon credits.

The Road Ahead

Experts argue that carbon markets must prioritize protecting natural carbon sinks, like forests, to effectively combat climate change. Without such measures, restoring lost ecosystems could take thousands of years.

As COP30 approaches, the question remains: Will these changes be enough to make a real difference in the fight against climate change?