Carbon credits can still help with decarbonisation in fragmented market: Report

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For carbon markets to take off, players in this space need greater clarity on the factors that are shaping the market trajectory.

International carbon markets will offer Singapore another route to reduce its emissions, even as it prioritises domestic efforts to do so.

“The explores the underlying drivers that could shape the trajectory of carbon markets. We hope the insights are useful in encouraging discussion around key actions that can develop a more effective carbon market to support global decarbonisation,” he added. GenZero’s Carbon Scenarios report highlighted three scenarios, each with varying degrees of international collaboration, that show that carbon markets will still have a role in all three outcomes.

Those which are able to decarbonise their economies at lower cost, do so first, and once they have met their climate targets, they sell their excess emissions reductions to other countries which face more difficulties decarbonising. In January 2023, news outlet the Guardian published a report claiming that most nature-based carbon projects were “worthless”. Another Bloomblerg article in March 2023

However, the report pointed to numerous ongoing initiatives that could help to enhance the environmental integrity of carbon credits available in the market.

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