A recent report by BeZero Carbon reveals that a $100 billion carbon market could catalyse $700 billion in annual investments in carbon projects, protecting 150 million hectares of land, equivalent to the size of Peru.
Landscape view of young trees reaching to the horizon. AI generated picture.
The report, titled $100bn for Planet and People, emphasises the potential benefits of such a market, which could also generate 12.4 million jobs in forestry, nearly 3 million in sustainable agriculture, and hundreds of thousands more in renewable energy and related sectors.
BeZero Carbon's CEO, Tommy Ricketts, highlighted the transformative potential of a $100 billion project-based carbon market, suggesting it could outpace the oil and gas sector in job creation while significantly reducing the global carbon footprint.
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Currently, over 50 types of activities, including forestry, mangrove restoration, and soil carbon sequestration, generate carbon credits. Each credit represents 1 tonne of CO2 or its equivalent mitigated by these activities.
Despite recent concerns over the integrity of carbon credits, the market is projected to grow, with BloombergNEF forecasting it will exceed $100 billion by the mid-2030s. This growth is expected to finance crucial emission reduction projects, such as reforestation and direct air capture, addressing 20% of the necessary carbon removals for the 1.5°C target of the Paris Agreement.
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The report indicates that a $100 billion market could annually reduce or remove around 1.2 billion tonnes of CO2, roughly equivalent to Japan's yearly emissions. Additionally, nature-based projects could protect 150 million hectares, supporting biodiversity and ecosystem health.
To achieve this vision, the report calls for improved verification of carbon credit projects and the integration of voluntary credits into compliance markets. It also advocates for corporate adoption of internal carbon pricing and enhanced project delivery quality.
The expansion of the carbon market holds the promise of substantial environmental and social progress, emphasising the need for robust frameworks and corporate commitment to realising these benefits.
DGB Group, a leading project developer of high-quality nature-based projects, offers a comprehensive solution for your CO2 strategy, assisting you in transitioning to net zero and enhancing sustainability. We can help you with detailed emissions reports, energy savings, carbon reduction strategies, and carbon compensation, all tailored to fit your budget and specific needs.
Download our carbon unit brochure to find out all the details
