Will carbon credits still be available in the coming years?

Last May, MSCI - which tracks data, analyses, and investment-grade ratings for voluntary and mandatory carbon markets - published an analysis that sent an important signal: in the carbon credit market, the number of carbon credits being offset has remained at the same level for the fourth consecutive year.

At the same time, $22 billion in capital was committed to the carbon credit market - a massive increase compared to previous years.

This increase is primarily due to the large number of offtake agreements - that is, contracts in which companies secure future supplies of carbon credits. At $12.3 billion, the share of offtake agreements has grown spectacularly. In addition, there were $9.7 billion in direct investments in climate projects, in which carbon credits were immediately offset.

MSCI interprets this development as follows: “The central question is no longer whether demand will materialize, but whether there will be sufficient high-quality supply available when the time comes.”

Major players are committing capital now to secure carbon credits for the future. For investors, this - even more so than analysts’ predictions - is the strongest signal imaginable.