A closer look at the carbon market

Carbon credits and carbon offsets are often used interchangeably, but that isn’t quite accurate. Carbon credits refer to an entity’s ‘right’ to emit one tonne of carbon, whilst a carbon offset represents the amount of sustainable energy produced, emissions reduced, or the amount of carbon captured by a sequestration project to ‘offset’ the use of fossil fuels. In addition, carbon […]

A closer look at recent carbon prices

On Wednesday 21 April 2021, Members of the European Parliament adopted an ambitious new climate target: a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The very next day, carbon prices soared to an unprecedented level of €47 per tonne. This was enough to restore confidence in the effectiveness of the European emissions trading system (ETS), […]

An introduction to carbon markets

A brief background The carbon market was created by the Kyoto Protocol, which was adopted on the 11th of December 1997. It carried forward the principles of the 1992 United Nations Framework Convention on Climate Change, or UNFCCC, that sought to commit parties to the reduction of harmful greenhouse gases. After a lengthy and complex ratification process, it finally came […]