Last week AlliedOffsets contributed to the launch of The World Bank's State and Trends of International Carbon Markets report, a comprehensive evaluation of the current state of carbon markets. Maria Benzoni, our Data Lead at AlliedOffsets, played an important role in the report's development, sharing insights on carbon pricing trends and other crucial market data. The report emphasizes how high-integrity carbon markets can help finance climate action in developing countries, while also addressing critical bottlenecks that hinder their growth.

This report presents a clear roadmap to overcoming challenges that limit the effectiveness of carbon markets, while also recommending pathways to maximize their potential. We are really excited that our data at AlliedOffsets provided an essential layer of analysis for the report, contributing to the understanding of pricing trends. 

AlliedOffsets on the Innovate 4 Climate Panel

To support the report's launch, Maria Benzoni represented AlliedOffsets on a panel at the Innovate 4 Climate conference, organized by the World Bank in Berlin. The panel discussion focused on the findings of the State and Trends report and provided key insights into the state of the voluntary carbon market (VCM), carbon pricing, and emerging market trends. 

Maria, along with other panelists, highlighted why prices in the VCM differ from those in the Carbon Dioxide Removal (CDR) market. She noted that nature-based removal credits continue to carry a premium compared to avoidance credits, highlighting the challenges and opportunities in scaling CDR. She also explained the ongoing relevance of offtakes in financing these emerging technologies, particularly in the context of Article 6, which is expected to set new standards for quality and inclusion of CDR credits.

Challenges and opportunities for the future of carbon markets 

The panel discussed several important questions from the audience, including how blockchain technology could increase transparency in carbon markets and how emerging economies, such as Vietnam, can effectively implement compliance schemes. The discussion also addressed ways to ensure the integrity of future carbon market mechanisms, a pressing issue given the past failures of the Clean Development Mechanism (CDM).

We look forward to attending and contributing to more market research and panel discussions in the future!