The carbon credit market - Italy

Since 2020, the carbon credit market has seen significant growth and development. The global carbon credit market was valued at $103.80 billion in 2023, with projections suggesting it could increase to $359.48 billion by 2032 at a CAGR of 14.8%. The voluntary carbon credit market alone is expected to expand from $1.49 billion in 2022 to potentially $5.34 billion by 2029 due to a projected CAGR of 20.0%. The demand for carbon credits has grown noticeably, driven by various factors, including corporate sustainability goals and regulatory compliance. In Italy, proceeds from the auction of EU Emission Allowance Units (EUAs) reached €3.17 billion in 2022, climbing 120.1% compared to 2018, despite a 57% reduction in the number of EUAs placed at auction since 2018. CO2 emissions from key economic activities in Italy showed a 30.2% decline from 2010 to 2022. The average auction price for EUAs across the EU surged by 1443.3% between 2017 and 2023, reaching $96.30 per share, while in the voluntary market, prices of carbon credits increased by 174.4% between 2020 and 2023, despite a 6.8% drop between 2022 and 2023. Forestation-related projects commanded the highest prices at $11.21 per credit unit in 2023. The market structure continued to diversify, with the number of mechanisms for generating and selling credits increasing by 58.8% from 2015 to 2023, and the number of certified projects rising by 667.5% from 2010 to 2023. Key actors in the market include Anew, South Pole, Everland, Finite Carbon, 3Degrees, and Forest Carbon, among others, driving the development and marketing of diverse carbon reduction projects globally. Certification standards such as Verified Carbon Standard (VCS), Gold Standard (GS), Climate Action Reserve (CAR), American Carbon Registry (ACR), and Clean Development Mechanism (CDM) ensure the quality and credibility of carbon credits and projects..**Trends in Italy's Carbon Credit Market Dynamics** In recent years, Italy has witnessed notable trends in its carbon credit market, which are reflective of both the regulatory environment and the overarching global ambition to mitigate climate change. A clear trajectory towards a reduction in greenhouse gas (GHG) emissions is evident across various sectors. Companies engaged in mining, manufacturing, and energy industries have collectively lowered their CO2 emissions by approximately 30 percent from 2010 to 2022, indicating a significant pivot towards environmentally friendly practices. The demand for European Union Allowances (EUAs) in Italy has seen fluctuation, with a marked decrease of around 55 to 60 percent in the total number of EUAs auctioned from 2018 to 2023. This is largely attributed to the European Union's Emissions Trading System (EU ETS) directive, which mandates a year-over-year reduction in emission allowances in a bid to stimulate sustainable business practices. Concurrently, there's been a drop of about 15 to 20 percent in the number of ETS Stationary Plants in Italy from 2005 to 2023. Market prices for carbon credits reveal a striking increase, especially in the post-2020 period. The average auction price for EUAs has seen an exponential rise of over 1100 percent between 2015 and 2023, reflecting heightened demand and more stringent cap-and-trade policies. Similarly, voluntary carbon credits have more than doubled in price, suggesting an increasing corporate commitment to offset emissions through ethical and strategic investments in environmental projects. The Italian market's geographic demand is concentrated, with about 30 to 35 percent of total installations located in the Northeast and Northwest regions of the peninsula. This distribution is indicative of the industrial and economic activity in these areas. Additionally, small and very small emitters have been growing in number, although there has been a slight decrease of 5 to 10 percent between 2021 and 2023. Projected growth for the global carbon credit market and its voluntary segment promises an expansion in value by multiple billions of dollars over the next decade. This underscores the significance of carbon credit markets as instrumental avenues for transitioning to low-carbon economies and fostering sustainable development practices both in Italy and globally..### Pioneers and Innovators in the Expanding Carbon Credit Landscape The carbon credit market is rich with dynamic players offering diverse approaches to addressing climate change and reducing emissions. These organizations operate at the juncture of environmental sustainability and economic incentive, each carving out a niche that synergizes conservation efforts with market mechanisms. Below, we explore several key actors making significant strides in the carbon market. **Anew Climate:** With a robust portfolio spanning carbon capture, renewable energy, and waste decarbonization, Anew Climate emerges as a formidable force in the carbon credits sphere. Their expertise extends beyond mere carbon offsetting, encompassing a range of environmental commodities that demonstrate their deep commitment to pioneering climate solutions that resonate across various industries. Their influence is particularly notable in the facilitation of landmark projects and their ability to catalyze value for stakeholders while achieving broad climate impact. **South Pole:** Hailing from Zurich, Switzerland, South Pole exemplifies a company that doesn't just navigate the sustainability sector but leads it. South Pole tackles climate challenges head-on with comprehensive solutions, from carbon credit project development to climate risk consulting. Their global footprint and dedication to environmental progress position them as a beacon for organizations worldwide looking to bolster their commitment to sustainability. **Everland:** As the exclusive marketer of a suite of REDD+ forest conservation projects, Everland represents the synergy between environmental conservation and community development. Their focus on protecting forests and biodiversity through market-driven solutions not only underscores the critical role of forests in climate mitigation but also highlights the humanitarian aspects of carbon offsetting, shaping Everland's reputation as a key player in the market. **Finite Carbon:** By creating avenues for landowners to engage with the carbon market, Finite Carbon stands out as a primary developer of forest carbon credits in North America. They provide a template for sustainable forestry and land stewardship, assisting in the transition to a carbon-conscious future while ensuring their clients can navigate the complexities of carbon markets. **3Degrees:** With a comprehensive portfolio of services, 3Degrees positions itself as both a consultant and an implementer, bridging the gap between renewable energy generation and carbon credits. San Francisco-based and privately owned, 3Degrees takes on the challenge of integrating clean energy into various sectors, facilitating the transition to a low-carbon economy through innovative strategies and market-based solutions. **Forest Carbon:** With its roots in Southeast Asia, Forest Carbon prioritizes the restoration of degraded ecosystems, crafting a business model that harmonizes environmental restoration with economic returns. The company's pragmatic approach leverages expertise and investment to

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 19/02/2024

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Summary and extracts

List of charts

• Carbon credit market
• Voluntary carbon credit market (VCM)
• Voluntary carbon credit market volume
• Value of carbon credits in the voluntary market, breakdown by category
• Proceeds from the auction placement of EUAs
• Proceeds from environmental taxes paid to listed enterprises
• Quantity of EUAs placed on auction
• Small and very small emitters registered in the National Registry (RENAPE)
• ETS Stationary Installations
• Atmospheric CO2 emissions from the listed activity
• Average annual prices for EUAs
• Price of carbon credits in the voluntary market (VCC), breakdown by project category
• Prices of carbon credits in the voluntary market (VCC), breakdown by project standard
• Average price for carbon credits in the voluntary market (VCC)
• Mechanisms implemented for the comparative trading of carbon credits
• Evolution of the number of projects certified to issue carbon credits (CAR, ACR, CDM, VCS)
• Projects certified to generate carbon credits, breakdown by certifying body

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