The Collapse of NGEO Carbon Prices: An In-depth Analysis
- Media Manager
- Jun 8, 2023
- 1 min read
carboncredits.com
Written By: Jennifer L
Published: June 9th, 2023
The voluntary carbon market (VCM) has been a significant tool for companies to achieve net zero, with carbon credits playing a key role.
To fully appreciate the implications of the sudden downturn in prices, particularly in NGEO (Nature-Based Global Emissions Offsets) prices, it’s essential to understand the differences between the various types of carbon offsets available in the voluntary market.
In this market, three primary types of offsets are traded – NGEO, GEO (General Emissions Offsets), and CGEO (Certified Global Emissions Offsets).
NGEOs are carbon credits generated by projects that reduce, remove, or prevent carbon emissions through nature-based solutions. Examples include forest conservation or restoration projects that sequester carbon in trees and soil, or agricultural practices that reduce emissions or enhance carbon storage.
GEOs, on the other hand, represent a broader category of offsets that might include nature-based solutions. But they also include renewable energy projects, methane capture from landfills, or energy efficiency initiatives.
Lastly, CGEOs are a type of carbon offset that is third-party verified to certain standards. This verification offers an extra layer of assurance to buyers about the quality and legitimacy of the emission reductions.
