Voluntary carbon markets (VCMs) have become a force across the globe. But a new report from Nasdaq and The ValueExchange finds that today’s structural challenges imperil tomorrow’s growth.
Carbon credits are in demand from an increasingly diverse audience, fostering an emerging market ecosystem of corporate buyers, fund managers, financers, registries, operators and carbon project owners.
Yet while demand for credits grows, so too do fundamental challenges that obscure, fragment and complicate VCMs.
The core takeaway from our survey is that respondents expect growth and are largely eager to participate in carbon markets, but problems linked to price transparency, market inefficiencies and manual diligence restrict their ideal trading and issuance flows.
We surveyed 130+ strategic decision makers on how they're integrating carbon markets into their strategy.
Corporate respondents ranked stakeholder ESG demands as their No. 1 driver for buying and trading credits.
Financial investors including fund managers said returns were their top driver of activity.
Commercial banks ranked decarbonization of investment portfolios at the top.
Intermediaries including brokers and custodians were most driven by the opportunity for a new revenue stream.
We surveyed 130+ strategic decision makers on how they're integrating carbon markets into their strategy.
Share of activities managed by phone and email:
For more insights on the carbon markets, listen to this podcast featuring Nasdaq's Roland Chai, Head of European Markets Services, and ValueExchange CEO & Founder Barnaby Nelson.
Standardization in products and contracts is essential to a scalable market, but it’s one thing VCMs generally struggle with. And it’s holding growth back: 25% of financial investors said a lack of standard product definitions limited their ideal flows by 51 – 100%. The gap in standards not only creates blockages in demand but also supply, 29% of project owners reported similar levels of constricted flows due to lack of standards in spot reference contracts. Ultimately, these negative impacts erode trust and transparency, while also creating risks and preventing local markets from attracting foreign investors.
66% of respondents said registries will be critical enablers of any progress on current challenges as the market looks to them for dependability, consistency, and standardization.
66% of respondents said registries will be critical enablers of any progress on current challenges as the market looks to them for dependability, consistency, and standardization.
While 55% of activity was attributable to traditional credits (e.g., forestry and renewable energy), credits tied to projects that remove and store carbon command a price premium, trading at $350 per CO2e ton for their permanence and lower risks.
While 55% of activity was attributable to traditional credits (e.g., forestry and renewable energy), credits tied to projects that remove and store carbon command a price premium, trading at $350 per CO2e ton for their permanence and lower risks.
97% of respondents are confident that results will be seen in three years and said investor education will be crucial to any progress.
97% of respondents are confident that results will be seen in three years and said investor education will be crucial to any progress.
Please check your inbox for your copy of the Scaling Carbon Markets: A New Market Blueprint for 2024 report.
This ebook is your essential toolkit for carbon removal, shaped by a variety of thought leaders, early-innovators and movers in the market.
Learn more about Nasdaq’s technology custom built for carbon markets and registries.
Learn more about Nasdaq’s technology custom built for carbon markets and registries.
Please check your inbox for your copy of the factsheet.
As carbon markets gain popularity, a marketplace model can create standardization and reduce fragmentation. Learn how Nasdaq's tailored technology can support carbon trading venues.
As the market for carbon credits is rapidly expanding, a reliable, standardized, and transparent marketplace becomes necessary. Nasdaq’s cloud-based trading technology has been designed to meet the unique needs of carbon credit buyers, ensuring that they can match with a seller of carbon credits that meets their requirements.
Check your inbox for your copy of the case study.
Nasdaq and VX partnered to learn more about the state of VCMs and what decision makers view as the biggest growth areas. We’ve curated and illustrated key insights on opportunities, challenges and more.
Watch the recording from our latest webinar where we discussed the survey results, the challenges preventing growth in carbon markets, opportunities for change, and an action plan for corporates, exchanges and market participants.
End-to-end capabilities across the carbon credit trade lifecycle deployed via our SaaS, cloud-based platform tailored for carbon venues. Benefit from automation and standardization from issuance through trading, settlement and custody. We’re helping leading registries and market operators like Puro.earth and CIX to build trust offer efficiency and drive growth that leads to positive climate impacts.
Discover Puro.earth, providing carbon removal as a service to corporations looking to neutralize carbon emissions by identifying processes that remove carbon dioxide from the atmosphere.
