Nasdaq – Global Net Zero Pulse, 2023

As of June 2023, over 5,000 companies, representing nearly one-third of global market capitalization, have committed to reducing their emissions. However, the voluntary carbon market, which is necessary to scale carbon removal credits, faces barriers in terms of supply shortages and variations in carbon credit types. To gain insight into carbon credit purchase decisions, the Nasdaq ESG Advisory team conducted a survey of ESG and sustainability professionals worldwide. This report presents the survey findings, focusing on the key characteristics that influence corporate purchase decisions, particularly in relation to carbon removal. The report also highlights the importance of carbon dioxide removal (CDR) deployment to maintain a 1.5°C warming scenario, with the Intergovernmental Panel on Climate Change (IPCC) specifying the need for 20-660 Gt of cumulative CO2 removal by 2100. The methods of CDR vary in terms of technology, storage medium, cost, and other factors. Additionally, the report mentions that global net anthropogenic greenhouse gas emissions in 2019 were 59 ± 6.6 GtCO2-eq, and the carbon budget has been reduced from 500 GtCO2 to 250 GtCO2, posing challenges in achieving climate goals aligned with the Paris Agreement. The current scale of the CDR industry cannot make a significant impact on global net emissions, with the majority of current CDR coming from terrestrial sources. Meeting 1.5°C global warming scenarios will require scaling up both conventional and novel CDR methods. The next decade will be crucial in developing the CDR industry to meet climate goals.