2023 has been a landmark year for the planet, giving us a glimpse of the future that awaits us if global warming continues unchecked. With this in mind, Bloomberg has partnered with Carbon Growth Partners to produce this whitepaper that aims to show the importance of carbon credits in the transition to a net-zero economy — and make it clear just how easy it is for organizations to use offsets as part of their journey to net-zero.
Market fundamentals: An asymmetrical upside case
Carbon prices are expected to rise significantly as more ambitious emissions reduction commitments are made and met, and the supply of carbon credits is constrained.
While 2023 has been a challenging year for carbon prices, strong fundamentals of growing corporate demand, combined with new rules that will make it harder to generate carbon credits, could flip market conditions from oversupplied to undersupplied in the near term. This would put significant upward pressure on prices, especially for sought-after, nature-based credits.