Carbon markets have the potential to accelerate the transitions needed for decarbonization by increasing the resources mobilized from the private sector, reduce the burden of NDC implementation and increase global ambition. Voluntary carbon markets reached a market size of $2 billion in 2021 and are expected to grow to $10 – 40 billion by 2030, while markets under Article 6 of the Paris Agreement are estimated to reach US$300 billion a year. Carbon markets remain fragmented with a lack of transparent data, high transaction costs, and evolving guidance. Open dialogue, harmonized approaches, and common template documents can bring efficiency, build capacity, and expand access to markets.
The event will launch the Carbon Action Forum, a group of potential buyers and sellers to identify transaction-level challenges related to participation in carbon markets and co-develop solutions that can help scale markets. The Forum, partially funded by Global Infrastructure Facility (GIF), will be a global initiative anchored by the Government of Singapore, building on its carbon market ecosystem. The World Bank will serve as the virtual secretariat for the Forum.