1、Compliance VoluntaryvsHow Carbon Credit Market Convergence Creates New OpportunitiesCarbon markets:a critical toolfor incentivizing net zero actionTo maximize our chances of limiting warming to 1.5C and mitigate catastrophic effects of climate change,we need to achieve global net zeroby 2050.Achievi
2、ng this depends on three key factors,all of which demand significant amounts of investment from both the public and private sector to drive them forward:?Corporates decarbonizing their operations?Preventing land use emissions from deforestation;an?Carbon removals expanded to 10 gigatonnes per year.W
3、hile much of the world recognizes the importance of meeting net zero by 2050,the actions and investments to make it happen arent at the scale they need to be.Right now,nearly all companies with net zero targets will fail to achieve their goals if they dont at least double the pace of emissions reduc
4、tion by 2030.When it comes to investment,it will take an estimated$3.5 trillion annually over the next 30 years,from both the public and private sectors,into the technology and infrastructure required to deliver a zero-carbon economy.While there is no substitute for organizations decarbonizing as mu
5、ch as possible,certain industries,particularly in hard-to-abate sectors,face complexities and high costs on the road to zero carbon.In some cases,achieving zero carbon may be currently impossible with the available technologies.And,where it is possible,the incentives for investing in modern equipmen
6、t are not yet compelling.Meanwhile,the climate system remains indifferent to these challenges and merely demands the total sum of emissions to trend towards net zero.02Compliance vs.Voluntary WHITEPAPERIntroductionCarbon markets:a critical toolfor incentivizing net zero actionNo single financing lev