Nasdaq has released its latest report, “2024 Global Net Zero Pulse,” highlighting significant shifts in the voluntary carbon market (VCM) over the past year.
The report is based on a survey targeting corporate buyers of carbon credits, offering an in-depth look at the evolution of durable carbon removal credits and their importance in net-zero strategies.
By addressing existing knowledge gaps, the report aims to provide valuable insights for stakeholders in the carbon market.
Carbon dioxide removal (CDR) continues to be a vital component of corporate net zero initiatives. To fully utilize the VCM as a financing avenue for CDR, it’s essential to grasp stakeholders’ buying preferences.
Expanding on last year’s Nasdaq Global Net Zero Pulse survey, this year’s report examines the changes within the VCM over the past 12 months, providing valuable insights into its evolving landscape.
Also read: Europe’s top carbon polluters face rising bond interest rates, Dutch Central Bank report saysÂ
The report highlights key themes, including corporate net zero alignment, carbon credit purchasing strategies, and carbon market dynamics.
A major finding is the ongoing demand for durable CDR solutions. Despite market uncertainties, organizations recognize that durable CDR is vital for meeting net zero goals. Notably, 57% of respondents plan to invest in both nature-based and technology-driven carbon removal solutions, integrating them into their sustainability efforts.
Companies are increasingly aligning their carbon credit procurement strategies with specific sustainability targets, reflecting a greater awareness of effective environmental practices.
Concerns about greenwashing have led buyers to prioritize rigorous evaluation criteria, focusing on measurement, reporting, and verification (MRV), as well as cost and permanence.
Also read: SEB Publishes Its Latest Green Bond Report on Sustainable Water ManagementÂ
The changing regulatory landscape is influencing corporate approaches to carbon credit procurement, requiring companies to adapt to new compliance requirements.
The report also identifies a significant education gap regarding carbon removal credit types, highlighting the need for corporate training, particularly in emerging areas like ocean-based CDR.
The findings emphasize the growing importance of carbon removal credits in achieving net zero targets and the need for informed decision-making supported by a robust regulatory framework.