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A Pact

The Unforeseen Carbon Market Momentum

With international eyes vigilant on the events of the climate summits this past year, the global reaction has proved to be an unwavering and unforeseen momentum for carbon markets. A recent Environmental Finance poll of carbon market leaders surmised that this year is a watershed year for carbon markets. With Biden’s administration proposal for $36 billion for the fight against climate change, it seems that the markets are ready.

The Glasgow summit proved to fuel enough aid and funding to significant carbon reduction projects globally. With the groundbreaking new reforestation deal signed by 100 signatories and other international efforts to slow down/end methane pollution and coal are marching the drums of the private and public sector to participate. This means billions of dollars fueling massive offset projects transforming the carbon market from a buyer’s market to a seller. 

Therefore, we have to be prepared to transition into a diverse world of offset projects and credits and be the first to innovate.  Experienced project director and all across the industry, say we need to consider various factors in each offset project wish to participate in These factors can range from social, communal, and usefulness, not by viewing promising new asset classes that may be good for diversifying a carbon portfolio.

“Some prices have more than doubled over the past year, others have more than quadrupled,”

Environmental Finance market observers said.

However, this transformation does not go without its consequences. Reforestation projects are being created in a staggering space. 

Still, with this influx in the carbon market, many corporations will begin to remove carbon offsets rather than forestation. The price and availability of land caused large portions to reforest, which has now seen a growing bottleneck in its usefulness. 

By most analysts’ predictions, a greener world will require significant investment and focus on carbon capture innovation and projects. While not as glamorous or marketable as reforestation, carbon capture projects are proving to be tools that might save us the valuable time we need to avoid catastrophe. Offset projects have an extensive range of diversity that can each serve their unique purpose in tackling the most prominent pillars of climate change.

We at Pact take this fact grimily seriously as we find the history of past carbon schemes to be an insult to the missions of what the global community agreed to make a better, greener world. 

It may seem convenient and daring to go for a new asset class in this market, but what matters more for a healthy profit stream is to see that those projects do the best for the area it is in. Moreover, we must remember that while carbon markets offer enormous incentives for profit through clean offsetting projects, the mission in this new field is to better the world and the global community. 

Berkeley LabFollow

Carbon Capture & Storage Christine Doughty

Numerical simulation of geologic carbon sequestration

credit: Lawrence Berkeley Nat'l Lab - Roy Kaltschmidt, photographer

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