COP29 advanced international carbon trading with key agreements. Mixed signals on the energy transition, however, affirm investors’ view of an uneven transformation, while investment to address climate-driven physical risk looks likely to continue apace.

This major new report examines the financial impact of CORSIA on airlines, assessing carbon credit demand, supply and prices. Our modeling shows that the cost of CORSIA carbon credits could add up to USD 2 (Phase 1) and USD 5 (Phase II) to average ticket prices.

Global carbon-credit investment has surged in recent years with nature-based carbon projects attracting the most funding, driving emission reductions, sustainable development, biodiversity protection and job creation across developing regions. 

The trend of companies engaging in offtakes for carbon credits may well continue, given a greater certainty for buyers and project developers than the traditional spot market. We look at some of the plusses and minuses behind this trend.  

Have users of carbon credits reduced emissions faster or slower than non-users? Our latest report contradicts the notion that companies have used carbon credits as an alternative to investing in climate mitigation activities within their businesses. 

This report describes the methodology of the MSCI Carbon Project Ratings and finds that of the more than 4,000 projects assessed, fewer than 10% are rated in the AAA-A band. There are, however, some encouraging signs of a trend to increasing integrity. 

The ICVCM’s recent decision to reject renewable-energy projects from its high-integrity label reinforces MSCI’s own integrity analysis of this project type. What could this mean for the future of renewable energy in the carbon-credit market?

Developing countries have increasingly looked to carbon markets for conservation finance. But the biodiversity financing gap remains wide. Could Japan’s expansion of its Joint Credit Mechanism into nature-based projects help address this problem?