Carbon Markets: Opportunities & Challenges for Mobility Players

‍

In a world increasingly affected by climate change, radical action is needed in order to create a sustainable future. The net-zero equation remains unsolved at present as GHG (greenhouse gas) emissions continue unabated and are not being offset by removals. In a typical year, the world adds 51 billion tons of GHG emissions to the atmosphere, with 16% of those emissions coming from the mobility sector. To this end, several mechanisms such as carbon tax, carbon fines, carbon offsets, carbon insets and carbon credits, have been designed as a result of multilateral agreements with an objective to create an international consensus around reducing global carbon emissions.

In this report, we will cover these four mechanisms with an emphasis on the carbon credits mechanism. Carbon reduction mechanisms are getting stricter with time, pushing the market to reach net-zero eventually and gradually. As such, market standards are still new and evolving and what exists today in the markets may not be suitable for the future. This report provides an introduction and an in-depth view of the carbon credit markets and their implications on the mobility industry. By providing a better understanding of the market’s unique opportunities and challenges, we hope to provide the players within the automotive industry with insights and new possible directions to thrive in this new challenging environment, and to contribute their part in the global effort of fighting climate change.

‍

For the preview click here