Voluntary carbon offset prices fall
Uncertainty over integrity of offsets has weighed on prices since the start of the year, brokers tells Carbon Economist
Prices and volumes in the voluntary carbon market (VCM) have fallen sharply since the start of 2023, although retirements of credits are holding steady. Prices on the two most liquid futures markets on the CME exchange are down by around 60pc and 70pc on the year. The December 2023 global emission offset product is trading at around $3/t, down from $7/t a year earlier and $3.50/t at the beginning of this year. The NGO product for nature-based offsets is trading at c.$4.10/t, compared with more than $15/t this time last year and c.$6.50/t at the beginning of 2023. The decline in futures prices is emblematic of an overall trend in the physical market, says Erduan Reid, head of voluntary carbo
Also in this section
16 April 2024
US and European oil majors snap up smaller players and look to accelerate development in a region deemed to possess all the key elements for successful CCUS deployment
15 April 2024
Demand for credits seen rising 20% this year despite issues around integrity and standardisation
11 April 2024
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies
8 April 2024
Chevron New Energies is lead investor in funding round by Colorado-based provider of post-combustion capture technology