MSCI Carbon Markets

Introducing MSCI Carbon Project Ratings, a new generation of carbon project assessments designed to help you deliver on your climate strategy. Carbon Project Ratings are built for higher standards, so you can: •Maximize impact with 4,000+ investment-grade ratings. • Effectively compare quality with an intuitive AAA to CCC scoring system. • And invest toward your climate goals with a rigorously designed methodology. It’s time to raise the bar on carbon credit integrity - http://ms.spr.ly/6045mnUM1

#COP29 marked a significant milestone in the advancement of carbon trading. However, the summit in Baku also sent mixed signals about the future pace of the #EnergyTransition. Read our blog for a full wrap-up of the developments in Baku here: http://ms.spr.ly/6042W29Tm

What will #CORSIA mean for the future of #aviation? We have just published the world’s first publicly available price forecast for CORSIA*. The analysis uses proprietary data and projected credit demand for over 400 airlines, individual profiles of which subscribers can find on the MSCI Carbon Markets platform. Our modeling suggests that CORSIA-eligible credits could see prices in the USD 18-51 range per tCO2e during Phase I and USD 27-91 during the latter stages of Phase II (2033 to 2035). At these prices, the costs to international airlines would be modest. If all costs were passed through to customers, the average international ticket price would rise by 0.5-1.0% during Phase I. Read the full report: http://ms.spr.ly/6040WFHLs (*Based on review of publicly available carbon credit research and ratings providers, as of Nov. 1, 2024.)

What might the outcomes of #COP29 and #COP16 mean for your financial strategy? Join us on November 26 for a conversation about the potential impacts for investors from these two global gatherings. Register today: http://ms.spr.ly/6047W0jpb We’re bringing together four leading voices to help you unpack the takeaways: - Guy Turner , head of MSCI Carbon Markets - Linda-Eling Lee, head of the MSCI Sustainability Institute - Oliver Marchand , MSCI’s head of climate research - Lisa Eichler, MSCI’s head of physical risk and nature solutions The discussion will cover: • Developments in carbon markets • Climate finance •The energy transition • Nature- and biodiversity-related risks and opportunities Don’t miss this essential conversation, register today: http://ms.spr.ly/6047W0jpb

What will #CORSIA mean for the future of #aviation? Our analysts have published the world’s first* price forecast for CORSIA, showing #airlines could need 500+ MtCO2e credits by 2035, and with credit prices of up to USD 91/tCO2e. Yet the costs would be affordable, shared between airlines and passengers, adding less than USD 2 to an average ticket price in Phase I and USD 5 in Phase II. (*Based on review of known carbon credit research and ratings providers, as of Nov. 1, 2024.) #MSCICarbonMarkets #MSCIResearch http://ms.spr.ly/6046WadiY Our lead writer, Faris Pleho, will be presenting the findings of this paper at the Aviation Carbon Events next week. If you’re attending, we’d love to connect and discuss what these insights could mean for your business. Reach out to schedule a conversation!

What will #CORSIA mean for the future of #aviation? Our analysts have published the world’s first* price forecast for CORSIA, showing #airlines could need 500+ MtCO2e credits by 2035, and with credit prices of up to USD 91/tCO2e. Yet the costs would be affordable, shared between airlines and passengers, adding less than USD 2 to an average ticket price in Phase I and USD 5 in Phase II. (*Based on review of known carbon credit research and ratings providers, as of Nov. 1, 2024.) #MSCICarbonMarkets #MSCIResearch http://ms.spr.ly/6046WadiY Our lead writer, Faris Pleho, will be presenting the findings of this paper at the Aviation Carbon Events next week. If you’re attending, we’d love to connect and discuss what these insights could mean for your business. Reach out to schedule a conversation!

Carbon markets are incentivizing serious climate action, Henry Fernandez, MSCI’s Chairman and CEO, writes in the latest issue of Fortune, where he details why strengthening the voluntary carbon market must be a top priority at #COP29 and beyond. Read more here: http://ms.spr.ly/6042WQNe8

2024 looks set to be a record year for capital raised or committed for #CarbonProjects. Last week, MSCI Carbon Markets published an analysis of capital flows in the global #VoluntaryCarbonMarket, examining both publicly announced capital raises/commitments and project-level capital expenditure. Key findings: - Capital expenditure: Between 2013 and 2023, almost USD 42 billion was spent on the origination and development of almost 12,000 registered and pre-registered carbon credit projects globally, with #NatureBased projects accounting for more than half of the total spend. - Capital raised and commitments: Between 2021 and Q3 2024, around USD 43 billion has been committed or directly raised to invest in carbon credit activities, with the majority going into #CarbonRemoval projects, including nature and engineered projects. 2024 looks set to be a record year, with USD 14 billion having already been raised or committed by the end of Q3 2024. Read our detailed analysis on investment trends and outcomes in the global #CarbonCredit market through the link in the first comment.

“I think gradually, the world is recognizing that in addition to the compliance market, the voluntary carbon markets are going to play a large role in what we do,” Henry Fernandez, MSCI’s Chairman and CEO, tells Yahoo Finance in a conversation about the latest from #COP29. Watch: http://ms.spr.ly/6041WqkNv

The Integrity Council for the Voluntary Carbon Market (ICVCM) today approved three #REDD methodologies, recognizing them as meeting the high integrity standards of its #CoreCarbonPrinciples. This approval marks a key milestone in building a high-integrity REDD+ market. Reduced Emissions from #Deforestation and Degradation, or REDD+, has been the second most issued type of carbon credit but has faced significant challenges and criticism regarding crediting accuracy. This is largely due to the challenges and uncertainties in estimating the deforestation that would have occurred without a carbon project. Recent years have seen significant criticism for existing methodologies and projects, with allegations of severe over-crediting. Of the 104 REDD+ projects MSCI has rated, 53% are rated BB, B, or CCC—our three lowest ratings. While no credits have yet been issued under the newly approved methodologies, 13 projects on the Verra registry are currently applying under the new REDD methodology (VM0048), with additional projects expected to join. Together, these projects could collectively issue around 300 MtCO2 during their first crediting periods. Curious about the opportunities and challenges in the evolving REDD+ landscape? Watch our webinar from earlier this year to dive deeper: http://ms.spr.ly/6044Wl7Ne