The Current State of Carbon Markets

Carbon markets are currently experiencing a transitional phase marked by significant growth, especially within compliance markets, which now cover approximately a quarter of the world's GDP. This expansion is driven by initiatives such as Article 6, which facilitates the distribution of carbon pricing signals across various sectors. In contrast, voluntary carbon markets have faced turbulence, lacking resilience and clear demand signals. The ongoing reckoning regarding integrity in voluntary markets, although challenging, is leading to a more robust framework for scaling carbon finance.