Carbon credit values rise 75% amid expanding global regulated markets

High-quality carbon credits have seen a 75% value increase over the past 12 months, reaching $14 per ton, according to data from MSCI presented at Climate Week NYC. In contrast, lower-quality credits trade below $2 per ton. The market shows significant expansion in regulated systems and capital mobilization, with $5.5 billion invested in futures contracts and projects.

Global regulatory shifts are driving this growth. The European Union has integrated maritime emissions into its ETS, Indonesia is advancing carbon negotiation norms, and Mexico plans to launch a national system by 2027. In Asia, India has launched a registry portal for 740 entities, and Vietnam has begun its first system operations.

In Latin America and the Caribbean, climate action investment grew from $54 billion in 2020 to $108 billion in 2024. Brazil has been a primary driver, accounting for 58% of regional investment in 2024 with $63 billion, largely focused on solar energy and sustainable agriculture. However, despite these gains, investment in fossil fuels ($95 billion in 2024) remains double that of renewable energy ($43 billion), and total funding levels remain below the amount required for effective mitigation and adaptation.