The Flight to Quality in the Carbon Markets
- Media Manager
- Jun 22, 2023
- 1 min read
carboncredits.com
Written By: Jennifer L
Published: June 23rd, 2023
Carbon offset credits trading on the voluntary markets have taken quite a hit in the past year, with their prices falling down.
Prices for the various CBL carbon offset futures contracts, such as GEO (based on the aviation industry’s standards) and NGEO (for nature-based offsets) have seen significant declines in the last twelve months.
There’s a couple of factors at play here, not least of which would be the tough global macroeconomic conditions we’ve had lately.
High rates of inflation not seen in decades, on top of the continued war in Ukraine and lingering pandemic effects all contributed to slower economic growth exiting 2022 and entering 2023.
In addition, progress on a unifying standard for the carbon credit markets on a global scale remained stagnant at COP27. This further hampers development of the voluntary markets.
However, there’s one more issue causing downward pressure on carbon offset credit prices that I want to focus on today. But unlike the other causes mentioned previously, this issue originates from entirely within the voluntary carbon markets.
