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Since 1751, human activities have contributed more than 1.5 trillion tons of CO2 (carbon dioxide) to the atmosphere. More than half of that amount was generated in the last 30 years. In order to drastically reduce emissions and meet the objectives of the Paris Climate Agreement, measures must be taken. One of these measures has been the establishment of the compliance market. In Europe, the compliance market was established in 2005 as the world’s first major carbon market. Today, 30 compliance carbon markets across the globe collectively contribute to a reduction of approximately 20% of global carbon emissions. However, this is not sufficient to achieve the ambitious targets of net zero emissions by 2050 and this is why the voluntary carbon market offers additional opportunities.
A study by Accenture revealed that 34% of the 2,000 biggest companies worldwide (by revenue) have committed to reaching net zero emissions by 2050. Net zero is achieved when all emissions released by human activities are counterbalanced by removing carbon from the atmosphere. However, the study also states that 93% of these companies will not reach their goal if they don’t at least double the pace of their emission reductions by 2030. To reach their CO2 reduction objectives, companies offset their emissions by buying CO2 certificates in the voluntary carbon market for what they can’t reduce otherwise. How exactly does that work?
In collaboration with the Università della Svizzera Italiana (USI), SIX has produced a new whitepaper that addresses the buy-side demands in voluntary carbon markets. The primary focus here is on the demand for more quality and transparency in the voluntary carbon markets. Read the whitepaper to find out what challenges are currently affecting market participants.Find Out More