CMI – International Carbon Market Update, 2024

The International Carbon Market Update for 2024 highlights key statistics and developments in the global carbon market. It reports that 73 national and subnational carbon pricing mechanisms have been implemented, covering 23% of global greenhouse gas emissions. In 2022, USD100 billion was raised through carbon pricing mechanisms, with the voluntary carbon market valued at USD1.87 billion. Additionally, 78 bilateral agreements were signed by countries under Article 6.2, with 1,916 ITMOS traded under the same article. The update also discusses the outcomes of the global stocktake, which projects a temperature increase of 2.1-2.8°C based on current NDCs. Calls were made to transition away from fossil fuels, increase renewables, improve energy efficiency, phase out fossil fuel subsidies, and accelerate zero and low carbon technologies. Climate finance initiatives, such as the Loss and Damage Fund, the Green Climate Fund, and the Adaptation Fund, received pledges but fell short of the necessary trillions needed by developing countries. Regarding carbon markets, no decisions were reached on Article 6 market mechanisms, with unresolved issues surrounding cooperative approaches, host country authorizations, and registry structures. Despite this, the Article 6.4 Supervisory Body will continue work to operationalize the mechanism in 2024, with guidelines published for pre-registering projects under this article. Parties must meet requirements and submit necessary forms to participate in the mechanism.