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Carbon Credit Investments Accelerating – Trove

A recent study conducted by advisory firm Trove Research has revealed a surge in investments into carbon credit projects over the past decade. Between 2012 and 2022, US$36 billion has been invested, with half of this amount being invested the last three years. More than US$3 billion in future investments have already been pledged, expected  to yield over a thousand new carbon reduction projects, spanning from forest conservation to carbon capture and storage. These initiatives will result in an expanding pool of carbon credits, used by corporations alongside their decarbonisation efforts. Guy Turner, CEO of Trove Research, said: “This new analysis shows how committed investors have been to developing new, high-quality projects to meet future corporate decarbonisation needs. Corporates will have a huge variety of projects to choose from to deliver both emission savings and natural ecosystem protection.The study, commissioned by International Emissions Trading Association (IETA), standard setter Verra, and carbon credit ratings provider Sylvera, found that over 80% of voluntary carbon market investments are dedicated to nature-based projects, including afforestation/reforestation, enhanced forest management, and emissions reduction from deforestation and forest degradation. Currently, 246 such projects cover an area equivalent to Italy’s landmass. However, Trove’s research underscores the need for an additional US$90 billion in capital by 2030 to achieve the requisite volume of credits, highlighting the urgency of further investments in carbon credit projects.

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