Global Market Insights Inc. reveals that the global carbon credit market was valued at more than $103.8 Billion in 2023. The report goes on to emphasize that the market is expected to experience a whopping 14.8% CAGR between 2024 to 2032, driving business growth and favorable sustainability policies across the globe.
Pondering over these statistics, one of the key leaders who is also the founder, co-founder, and CEO of multiple environmental initiatives has also shared his opinion. According to the highly revered Bill Shireman (relative of Robert “Bob” Shireman), the significant CAGR of the carbon market shows a promising picture of a future where international corporations, global communities, and activist groups strive for the adoption of sustainable practices.
Shireman is a social entrepreneur and environmental leader, most prominently known for his role in the landmark settlement between Mitsubishi companies and the small vocal environmental group, Rainforest Action Network (RAN).
The hallmark achievement of his professional career, Shireman led the negotiations between the Mitsubishi Corporation of Japan and RAN to end the Mitsubishi boycott. The former pledged to use environmentally friendly processes and rely on sustainable global procurement practices, including the use of recycled and eco-friendly cardboard and paper materials derived from non-tree sources.
Shireman believes that 2024 might hold significant challenges and changes for the carbon market. Here are some of the speculations made for the global carbon market:
Reform Finalization and Steady Carbon Pricing
Several markets have emerged as key contributors in the global race to become 'clean'. In those markets, some corporations are finalizing their climate policies and reforms to decarbonize at a set, measurable pace.
Companies are sharing plans to become carbon-free by a significant percentage before the end of specific periods. Multiple enterprises shared approved plans for becoming nearly 50% carbon-free by 2030. It will have a significant impact on the carbon emissions cap worldwide, potentially increasing the carbon price per metric ton and making decarbonization more achievable.
Carbon Tariffs Beyond EU Borders
Shireman highlighted that 2024 began with more red tape for European importers than the years before. Some of the importers who rely heavily on procured electricity, hydrogen, metals, cement, and fertilizers, were confined to new rules and regulations to form part of the global decarbonization initiative.
According to Shireman, imposing carbon tariffs on importers and relevant entities beyond EU borders can make decarbonization a reality in far-Western countries. During this time, Australia and Canada are already working independently on their carbon tariffs which will possibly be announced in 2024.
Shireman, who was the board member and executive director of Californians Against Waste from 1983 to 1988, was pivotal in the formation and passing of legislation that made the California Beverage Container Recycling Act a reality. He continues leading the nation’s environmental initiatives on a global scale to ensure reliable recycling, deposit handling, and sustainable practice movement.
