At COP28, amidst discussions revolving around national emission reduction targets and the imperative phasing out of certain fossil fuels, the spotlight is firmly on the pivotal subjects of carbon taxes and carbon markets—both regulated and voluntary.
Key observations gleaned from these discussions underscore the pressing need for high-quality credits within the voluntary carbon markets. A significant insight emerges: the context of credit generation holds immense significance in their perception and valuation. Notably, buyers are placing a premium on credits originating from meticulously measured criteria, akin to the stringent standards upheld in Marsoft's GreenScreen shipping projects.
One of the presenters noted in their speech “…regulated carbon markets where credits are valued at $100/tonne CO2 have produced substantial reductions in emissions. When voluntary credits are valued at $50/tonne, we can feel confident that those activities represent real reductions as well.”
A notable trend arises in buyers' preferences—a growing insistence on a pay-for-performance contract structure. This structure signifies a shift where payment is contingent upon verified carbon reductions. Crucially, this demand aligns with the fundamental attributes of GreenScreen credits.
Hauke Kite-Powell, Senior VP Decarbonization at Marsoft, highlights the critical role of context in shaping the perceived value of these credits, emphasizing the growing emphasis on rigorous measurement criteria and a performance-driven payment structure, mirroring the core principles upheld by the Marsoft's GreenScreen program.