Struggling Carbon Credit Markets Welcome Back Banks
(18 April 2024 – United Kingdom) Supply and demand challenges remain for carbon credit markets despite clearer global standards and a new exchange possibly attracting expanded dealer entry Risk.net reports.
Ben St Clair reports for Risk.net that the fledgling market for carbon emissions offsets has ambitious plans for global financial institutions championing funding for communities on the front lines of the climate crisis and supporting companies to clean up their stubbornly ingrained CO₂ gas emissions. Carbon credit prices fell in 2023, with nature-based avoidance projects declining from US$11.50 per metric ton of carbon dioxide equivalent.
“As others in the financial industry prepared to realise the market’s ambitions for exponential growth, banks have mostly stayed away from financing for credit-producing projects and trading of carbon credits” stated Risk.net Senior Staff Writer Ben St. Clair.
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