The growth of the voluntary carbon market inspires new Crypto solutions

19 July, 2022

Voluntary carbon market volume and value are expected to expand at a rate never before seen by 2022. However, as the need for high-quality carbon offsets grows, supply is becoming more constrained due to systemic restrictions.

As a result, the market for voluntary carbon offsets is becoming more inaccessible to people and small enterprises. Carbon offset vendors are responding by developing innovative solutions that will make it easier and more comfortable for small businesses and people like you and me to participate in this high-growth sector.

Cryptocurrency and blockchain solutions are two examples of such innovations. There are several examples, such as CarbonClick, which has just launched the CarbonClick cryptocurrency mining footprint offsetting service.

CarbonClick crypto mining offsetting services are a hybrid of digital technology and environmental stewardship. They make it easy for consumers to link their efforts to mitigate climate change and to participate in the growing voluntary carbon market today.

Continue reading to learn more about the burgeoning voluntary carbon market, its fast expansion, and the possibilities and difficulties that come with it as it expands. For those innovators in the crypto sphere looking to strengthen their environmental credentials, there is no better product than CarbonClick crypto mining offsetting service.

Voluntary Carbon Market (VCM): What is it?

Traditionally, the voluntary carbon credit market (VCM) has allowed for the purchase, sale, and trading of carbon credits in order to offset carbon emissions. Carbon emissions from transportation, industry, and domestic heating account for the great bulk of the planet’s warming-causing greenhouse gases (GHGs).

Countries, corporations, and people may all decrease their carbon footprints via the voluntary carbon offsets market, contributing to a more stable and healthy environment.

With this system, carbon emitters may offset their unavoidable emissions by acquiring carbon credits from programs that remove or reduce greenhouse gas emissions from the atmosphere, according to S&P Global.

Examples of transactions include the purchase of carbon offsets by individual or commercial carbon producers from reforestation and land conservation projects (such as rainforest protection); solar, wind, or other renewable energy producers; and waste-to-energy projects, such as the conversion of methane into electric power.

Scientists and environmentalists are encouraging this effort, but so are governments and business leaders, who are under pressure to fulfil global targets like those outlined in the 2015 Paris Climate Agreement.

According to an international agreement, all countries are expected to reduce greenhouse gas emissions by half by 2030 and achieve net zero by 2050 under which the United States has reaffirmed its commitment. The process of formulating policy and putting it into action, on the other hand, may be laborious.

Climate change prevention and mitigation efforts have grown more popular and depended upon via voluntary carbon trading, which is undertaken independently of any government or corporate restrictions.

Make climate change your business. It’s not too late to expand your knowledge

Voluntary Carbon Market: How does It work?

The voluntary carbon market must center around a product or commodity if it is to be considered a market system. Carbon credits/carbon offsets are the commodity in this scenario.

Developed by the project developers, carbon offsets are directly linked to the decrease of greenhouse gases (GHGs), such as carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, and perfluorocarbons.

Some examples of development projects:

Environmentally friendly methods for reducing greenhouse gas emissions include:

• GHG emissions may be reduced by reducing the amount of fuel or energy used in a certain activity.
• Efforts to decrease carbon emissions by replacing fossil fuels with renewable energy sources such as solar or wind power.

They vary from modest community-based initiatives to large-scale industrial-scale operations.

Government and third-party authenticators, known as “Standards,” verify and issue credit. A carbon credit is a measure of GHG emissions that may be sold to carbon emitters in the form of corporate investors, governments, non-profits, and even individuals in order to offset their carbon emissions.

All carbon offset credits are bought and sold by regular traders and brokers just like any other kind of financial transaction. Large portfolio-style bundles of carbon credits are purchased by traders, who subsequently sell them to the final customer or to brokers for resale.

According to the World Bank’s carbon pricing dashboard, “offset programs issue carbon credits according to an accounting standard and have their own register,” however prices for carbon offsets vary.

Carbon credit price evaluations for nature-based and household-device-related projects will be published daily by S&P Global Platts starting in June 2021; this will be another another evidence of the present surge in voluntary carbon market growth.

In 2022, the Voluntary Carbon Market is expected to grow at an astronomical rate. The market for voluntary carbon offsets is expanding at a breakneck pace.

“If present levels of activity and development continue, VCMs are on course to surpass $1 billion in transactions this year,” says a new analysis from Ecosystem Marketplace, The State of the Voluntary Carbon Markets 2021. This contributes to an “all-time market value” of $6.7 billion.”

Using data from the study, we can see that voluntary carbon credit market growth had already increased by 58 percent in value and by 27 percent in credit volume as of the end of August 2021, as compared to the same period in 2020.

The price of carbon credits rises as a result of increased demand. For credits derived from forestry and land use projects (up roughly 9 percent since 2019) as well as waste capture/disposal operations and clean cookstoves, the weighted average price per ton is continuing to grow (rising 42 percent and 16 percent, respectively, since 2020).

The International Institute of Finance (IIF)-sponsored Taskforce on Scaling Voluntary Carbon Markets (TSVCM) is a multi-continent private sector initiative with similarly promising forecasts that looks even farther forward. The Taskforce predicts a 15-fold rise in carbon offset demand by 2030, reaching $50 billion.

There is little doubt that the green business potential is seen by TSVCM Chair and Chief Executive of Standard Chartered, Bill Winters. He says, “By expanding voluntary carbon markets, corporations will have the proper instruments and incentives to decrease emissions at least cost.”

Inventory, on the other hand, is struggling to keep up with rising demand and prices, proof of the spectacular expansion of the voluntary carbon market.

Innovations in the voluntary carbon market are spurred by growing pains

Nature-based programs, such as reforestation efforts, may take years to begin absorbing enough CO2 to have a significant influence on global greenhouse gas levels, making the lag quite long.

The quality of carbon offsets is becoming more important as the market for voluntary carbon offsets expands. It is the goal of the Taskforce on Scaling Voluntary Carbon Markets to create a “global baseline for carbon credit quality” to assure that carbon market goods are actually offsetting greenhouse gas emissions.

For those environmentally conscientious players looking to enter the rapidly expanding voluntary carbon market, the combined influence of strong demand, increasing prices, trailing inventories, and more rigorous regulation means increased obstacles. Individuals and small enterprises may have a particularly tough time becoming involved.

There are a number of challenges in the high-growth sector that carbon finance leaders are trying to overcome with sophisticated solutions.

Our newest product – The CarbonClick Crypto mining offsetting service.

The crypto mining offsetting service from CarbonClick, which uses our REST APIs to interface with cryptocurrency and blockchain technology in the voluntary carbon market’s armoury against climate change, is a remarkable innovation that has just been debuted.

The CarbonClick crypto mining offsetting service ensures that all of the carbon emissions offsets purchased by CarbonClick crypto mining offsetting service owners are of the highest quality, all of which have been confirmed by qualified and independent third-party verifiers. You may participate in the rapidly expanding voluntary carbon market by signing up now.

Carbon markets are expanding at a record pace, driven by a growing global commitment to combating climate change by reducing carbon emissions. However, because of the rules of supply and demand, it is becoming more difficult to enter and participate in these rapidly expanding sectors. CarbonClick and other carbon finance innovators are creating new methods for people to participate and influence the carbon credit markets in order to alleviate these impediments.

CarbonClick crypto mining offsetting services (CCCs), CarbonClick’ newest climate-protection product, are a sellable, transferable, gift-able investment that anybody, regardless of financial expertise, may use to engage in the fast-growing carbon market.

In order to get CarbonClick crypto mining offsetting services, clients must sign up for a monthly plan that allows them to offset between 12 and 36 metric tons annually, or between 190 to 590 trees.