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    VX Carbon Global Report Survey asset
    VX Carbon Global Report Survey asset

    Global Carbon Market Survey

    Scaling Today's Carbon Markets: A New Market Blueprint for 2024

    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.

    The Growth Challenge

    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.

    Key Findings

    Who Participated?

    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.

    Diverse Priorities Drive Diverse Demand

    Stakeholder demand

    Corporate respondents ranked stakeholder ESG demands as their No. 1 driver for buying and trading credits.

    Investment returns

    Financial investors including fund managers said returns were their top driver of activity.


    Decarbonization

    Commercial banks ranked decarbonization of investment portfolios at the top.


    New business

    Intermediaries including brokers and custodians were most driven by the opportunity for a new revenue stream.

    Three Main Challenges: Price Transparency, Market Efficiency, Fragmentation

    Manual Processes: Time and Resource Drag

    Share of activities managed by phone and email:

    Seeking Standardization

    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.

     


     

    Tomorrow’s Headlines

    Carbon Registries_icon

    Registries at the heart of the solution

    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.

    VX Carbon Report Removals icon

    Will engineered removal credits gain more share?

    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.

    Investor education on Carbon markets

    Hopes are high

    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.

    Value Exchange Report

    Explore the full report findings

    Resource Library

    Related Resources

    Fintech ebook resource

    eBook

    Carbon Removals: Achieving a Net-Negative Economy

     This ebook is your essential toolkit for carbon removal, shaped by a variety of thought leaders, early-innovators and movers in the market.

    FT_Factsheet_Resource_Asset

    Factsheet

    Nasdaq Marketplace Services Platform for Carbon Markets and Registries

    Learn more about Nasdaq’s technology custom built for carbon markets and registries.

    FT_Use_case_Resource_Asset

    Case Study

    Use Case for Carbon Credit Trading

    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.

    FT_Infographic_Asset

    Infographic

    Scaling Carbon Markets: Solving the Growth Challenge

    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.

    FT_Use_case_Resource_Asset

    Webinar

    Scaling Carbon Markets: Breaking Down the New Market Blueprint for 2024

    Join our upcoming webinar where we’ll discuss the survey results the challenges preventing growth in carbon markets, opportunities for change, and an action plan for corporates, exchanges and market participants.

    Related Solutions

    Ally with Nasdaq Technology

    Green highway

    Financial Technology

    Choose Nasdaq Marketplace Services Platform

    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.

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    European Markets

    The World's Leading Carbon Removal Platform

    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.