Two sides of carbon market

The Carbon Market Has Two Stories Are We Listening to Both?

The carbon market isn’t just about numbers it’s about balance. Like any functioning ecosystem, it needs both supply and demand to thrive. But too often, we focus on one side of the equation while the other quietly falters. And that imbalance could cost us dearly.

The Supply Side: Where Carbon Credits Are Born

On one side, there’s a growing wave of innovation. From reforestation and mangrove restoration, to clean cooking projects and renewable energy initiatives these are the unsung heroes creating carbon credits and delivering co-benefits for communities and nature alike.

Behind these efforts are platforms like Verra, Gold Standard, the EU-ETS, and ICM each striving to ensure that credits aren’t just plentiful, but credible.

But here’s the thing: supply alone isn’t enough.

The Demand Side: Who’s Buying and Why It Matters

On the flip side, we have the buyers: corporations, governments, and even individuals trying to walk the talk on climate action.

Big names like Microsoft, Lufthansa, Shell, and Tata Steel are tapping into carbon markets to hit net-zero targets, meet compliance goals, or strengthen their sustainability credentials.

Yet despite this momentum, the reality is sobering: supply still far outpaces demand. And when demand doesn’t rise to meet supply, projects stall, funding dries up, and the climate solutions we so urgently need lose steam.

Bridging the Gap: Demand Needs a Push

So, how do we create a more balanced, high-integrity carbon market?

🔸 Restore confidence: Buyers need to know they’re supporting real, lasting impact. That means robust verification and clear claims.

🔸 Incentivize action: Governments and financial regulators can play a catalytic role through mandates, tax benefits, or Article 6-linked programs.

🔸 Build smarter systems: Better data, more transparency, and interoperable market infrastructure will help build trust across the value chain.

The Role of Market Stewards

Enter the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Market Integrity Initiative (VCMI) two bodies setting the gold standard for what a trustworthy market should look like. They’re crafting the rules, defining principles, and helping the world distinguish between greenwashing and genuine impact.

This isn’t just about carbon credits. It’s about restoring equilibrium to a system designed to accelerate climate finance and support real solutions where they’re needed most. Because when both sides of the market work in harmony, everyone benefits especially the planet.

source:

https://www.linkedin.com/posts/sustainability-infographics_supply-vs-demand-side-carbon-markets-activity-7318875550675046400-v7-k?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAtGGkQBsxwMBmX3lEJO8btihnfBCaHqTz4