The cost of offsetting corporate carbon emissions is expected to surge tenfold over the next decade as growing numbers of businesses adopt net zero targets, with carbon credit prices tipped to reach between $20 and $50 a metric ton of CO2 by 2030, according to new research.Īt present, the price of carbon offsets - where organizations compensate for their own emissions by purchasing credits issued by emission reduction projects - remains "unsustainably low" thanks to a surplus of credits on the voluntary offset market built up over many years, according to the study.Ĭarbon offset prices on average stand at just $3-5 per metric ton of CO2 at present, with experts fearing that prices are far below the level required to both unlock significant investment in emissions-mitigation measures, such as carbon removal technologies or large scale nature-based solution projects, and provide companies with an additional financial incentive to reduce their own emissions and avoid the need to purchase offset credits.īut according to the study published by Trove Research and University College London (UCL) late last week, the current surplus of carbon offset credits could be quickly eroded, with demand expected to increase fivefold or even tenfold over the next decade as companies seek to deliver on their net zero emissions pledges.Īs such, prices could rise to $50 per metric ton by 2030, which researchers said would help to incentivize investment in climate action by encouraging land owners to shift some of their income away from agriculture and towards preserving forests and planting trees.
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