Global carbon markets have grown exponentially since 2018. New markets have been set up after a wave of countries pledged net-zero targets, while existing markets have increased their prices to chase additional emission reductions. Despite the expanding coverage of carbon markets, their ambitions vary greatly. The rest of this year and the next will be a defining time as governments reform their carbon markets against the backdrop of the war in Ukraine, high energy prices and raging inflation. BloombergNEF has identified eight key drivers for carbon in 2022 and beyond.
