Compliance markets drive global carbon credit demand
The growth of compliance carbon schemes globally is shifting the market from a voluntary, Western-centric model to a multi-polar, regulated system.
The argument
The guest from MSCI argued that 15 jurisdictions globally (including Singapore, Australia, Colombia, and South Africa) now allow carbon credits to offset taxes or meet compliance mandates. This regulatory shift is expected to create a sizable, diversified demand base over the next five years, helping to offset political headwinds facing voluntary net-zero targets in Europe and the UK.
The thesis, stress-tested
✓ What validates it
- ✓Increased transaction volumes in compliance-eligible credits
- ✓Integration of standardized eligibility criteria across the 15 compliance jurisdictions
▸ Risks discussed
- ▸Complex, fragmented eligibility requirements across different jurisdictions
- ▸Political headwinds and backlash against net-zero policies in developed markets
Hear it yourself
"We've been sort of talking about this for the last year or so, and sort of what I used to call, sort of, unilateral world is moving to a multi polar carbon world, where the old sort of bastions of demand in rich worlds in Europe and North America, the big corporates, yeah they still exist but we've now got 15 jurisdictions around the…"
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