Voluntary Carbon Markets - an opportunity hiding in plain sight
Andries Smit
inDrive Delivery & New Verticals: Growing, building, partnering and investing in businesses to fight injustice.
The voluntary carbon markets (VCM) offer a unique opportunity to tackle the pressing issue of global climate change.
KEY INSIGHT: With more than a third of the world's largest listed companies having set net-zero targets, the demand for carbon credits is skyrocketing.
OPPORTUNITY: To meet the climate targets set by the Paris Agreement, the VCM must scale quickly and significantly. Estimates suggest that the market must grow to be worth $50 billion by 2030 (from c$2 billion today), while demand for credits could increase by up to 100 times by 2050.?
Despite these immense opportunities, the VCM is currently not scalable and faces several inefficiencies in its value chain. These include a lack of supply of credits, insufficient financing, a lack of transaction infrastructure, and a general lack of transparency (for both project developers and carbon credit purchasers). NOTE: we've identified at least 16 inefficiencies - DM if you want more detail on this opportunity.
SIGNALS OF VALIDATION: There are a number of innovative solutions emerging to solve these inefficiencies. For instance, Evergrow, Salt Global, Frontier Climate, Ceezer Earth, Pachama, and Ivy Protocol are all creating solutions to help bridge the gap between supply and demand.
But, there is SO much more that need to be done. Entrepreneurs and business leaders can unlock a world of opportunities in the Voluntary Carbon Market that not only drives direct value to their businesses, but will make a real impact in the fight against climate change.
Cleantech & Fintech - Advisor | NED | Mentor
2 年Andries Smit, worth checking out BeZero Carbon who are delivering transparency and rigour to the VCM market.
????? We make the transition to sustainable heating radically simple, for customers and craftsmen.
2 年Just looking at the gigatons of carbon that will have to be removed to reach climate targets indicates that VCM is going to get really, really big!