Nature Carbon Resumes Decline After Last Week’s Crash, Prices Eventually Seen Above $5, Even Above $20 (2)

Dec. 13-14, 2022

By Mathew Carr

Nature-based contract down 11% to $3.81/ton Wednesday. Short term (December 2022) supply appears to be overwhelming demand as the contract nears end of life. Dec. 2024 contract dropped 2.8% to $8.35 /ton.

Prices are well below the $100 a ton seen by economists as needed to spur urgent climate action. Governments and markets continue to struggle to insert better market structures that would protect the climate and create demand for credits.

Ric Porteus Decarbonising Commerce | B2B Climate Action Tools | CEO ONE TRIBE:

“Demand will 10x next year and prices will follow! There is a Tsunami of SME buyers about to enter the market!” he said.

Chart here

CBL Nature-Based Global Emissions Offset (N-GEO) futures offer firms a way to meet emissions-reduction targets using high-quality, nature-based offsets sourced exclusively from agriculture, forestry, and other land use (AFOLU) projects.

This contract builds on CBL GEO futures to offer another risk-management tool for addressing carbon footprints in the voluntary emissions-offset marketplace.

Prices of Voluntary Carbon Units (VCU) remain under pressure, Post on LinkedIn.

The CME’s Nature-Based Global Emissions Offset (N-GEO) futures contract marked an all-time low at $2.91 per tonne last week. 

Since then, prices have recovered, and the December 2022 NEO Future is currently trading around $4.50 per tonne.

We asked clients at the Global Carbon Market Conference by S&P Global end of November where they see the price of Nature-based Credits end of next year. 

24% of the respondents saw prices between $5 and $10 per tonne, while a similar number of participants expected prices above $20 per tonne. 

Where do you think Nature-based Carbon Credits will trade next year?

#carbontrading #VCM #netzero #sustainablefinance

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