Panellists highlighted the important role and potential of carbon markets in the transition to net zero.
At ESG NOW!, Nomura’s global sustainable finance conference, Eddie Listorti, CEO of Viridios Capital, Andrew Bowley, Wholesale Governance Officer at Nomura and Roy Choudhury, Partner at Boston Consulting Group discussed the crucial role carbon markets will play in the coming decade to help companies offset their residual emissions.
Choudhury spoke about carbon markets being at a key inflection point as large companies come under increasing pressure to disclose their carbon market footprint and carbon reduction strategies for their residual emissions, which will necessitate increased use of voluntary carbon markets.
Bowley explained how carbon needs to be properly priced as only 500 gigatonnes of CO2 equivalent can be emitted to meet net zero goals under the Paris accord and the current rate is 50 gigatonnes per year. He explained how the quality of the underlying projects for carbons offsets can help to scale and grow the market.
Listorti painted a picture of the untapped potential in the carbon markets, which have seen a huge spike in prices this year. To take one example, renewable energy credits moved from 78 cents/tonne in January to A$8.50 in December, a gain of 1200%.
This content has been prepared by Nomura solely for information purposes, and is not an offer to buy or sell or provide (as the case may be) or a solicitation of an offer to buy or sell or enter into any agreement with respect to any security, product, service (including but not limited to investment advisory services) or investment. The opinions expressed in the content do not constitute investment advice and independent advice should be sought where appropriate.The content contains general information only and does not take into account the individual objectives, financial situation or needs of a person. All information, opinions and estimates expressed in the content are current as of the date of publication, are subject to change without notice, and may become outdated over time. To the extent that any materials or investment services on or referred to in the content are construed to be regulated activities under the local laws of any jurisdiction and are made available to persons resident in such jurisdiction, they shall only be made available through appropriately licenced Nomura entities in that jurisdiction or otherwise through Nomura entities that are exempt from applicable licensing and regulatory requirements in that jurisdiction. For more information please go to https://www.nomuraholdings.com/policy/terms.html.