Carbon Markets: CBAM and Article 6 Provide New Momentum

Regulated carbon markets are expanding in number and scope. Their impact to date has been limited and at times counterproductive. But reforms to the EU and China’s schemes – and the impending introduction of schemes in Brazil and India – are adding to momentum. At the same time, recent declines in voluntary carbon market activity reflect the sector’s credibility issues. As part of our conclusions, we expect steady if unspectacular growth in carbon markets as challenges are overcome.