A Look at Climate News in 2024 and Looking Forward to 2025.

Climate news in 2024 reached a new peak as the world experienced more extreme weather events, groundbreaking scientific discoveries, and climate advancements this year than ever before. In our final Insights of the year, we’re taking a look at the milestones and stories that made 2024 one for the books.

Our Top Milestones of 2024.

2024 was one for the books at Invert! From project issuances, to new partnerships, here are our top five highlights from the year:

1. Several projects in our Bonos Jaguar del Mayab Portfolio ﹘ a collaboration between Invert, The Earth Lab, and local Ejidos – marked their first issuance in 2024. Bonos Aroma del Mayab, Bonos X-Hazil Ruta Sian Ka’an, and Bonos Laguna Síjil Noh-Há, collectively brought over 1million high-quality, North American IFM Removal Tonnes to market. 
   
2. We joined Marsh and Oka on the Risk in Context Podcast to discuss the state of the voluntary carbon market and the role of insurance in scaling the immense opportunity that lies ahead.
   
3. Our partnership with TIFF took us to Hollywood to share our message of sustainability and climate action in the world of cinema.
   
4. We joined our partners at ClearBlue Markets for a webinar on BC’s new Output-Based Pricing System (OBPS). In exploring compliance pathways under the new scheme, attendees were provided with a better understanding of their requirements under the new framework and how eligible carbon projects can play a material role in meeting obligations.
   
5. We were recognized in Harvard Innovation Labs’ Top 2024 Milestones. As a member of the 2024 Climate Entrepreneurs Circle Cohort, it was an honor to join current and former Harvard Innovations Labs ventures on this inspiring list.

Our top climate news of 2024.

Climate was big news this year, but a few of our stories stood out among the rest. Here are the top five climate news stories in 2024, as chosen by our readers:

1. August 2: New guidance on carbon credit use: SBTi
2. July 12: 30% increase in organizations committed to nature disclosure by 2025
3. September 20: Quietly closing the gap between climate ambition and action
4. June 7: ICVCM approves new methodologies that meet Core Carbon Principles
5. March 15: A course correct for SBTi net-zero commitments

Looking ahead to 2025.

A new report from MSCI, Sustainability and Climate Trends to Watch for 2025, highlights the market trends and conditions destined to transform carbon markets in 2025. From rising demand, to evolving regulatory frameworks, and a shift towards higher-quality credits, here are the top 6 takeaways for the year ahead.

1. Voluntary Carbon Markets are at a Turning Point

The voluntary carbon market has faced scrutiny in recent years over the quality of carbon credits. However, 2025 may mark a turnaround with:

• Higher-quality credits gaining traction: Projects with better integrity ratings (A or AA) now represent a larger share of credits retired, increasing from 6% to 12% between 2022 and 2024.
  
• Emerging demand sources: Mechanisms such as CORSIA and regional compliance markets, including Australia, Colombia, and Singapore, are integrating voluntary credits into their systems, fueling demand.
  
• New frameworks: The Paris Agreement Crediting Mechanism (PACM), developed under Article 6, is expected to launch its first credits in late 2025, establishing a foundation for transparent country-to-country and corporate credit trading.

2. Rising Demand from Compliance Markets

While compliance markets have historically limited the use of carbon credits, new developments suggest a shift:

• COP29 progress: The conference advanced high-level standards for carbon-project methodologies and clarified rules for credit trading under Article 6.
  
• Integration into major schemes: The EU is considering allowing carbon credits for C02 removal projects, and ICAO’s CORSIA will require carbon credits for aviation emissions starting in 2025, potentially driving demand for 140 million tonnes of credits in its first phase.

3. Shifting Focus to High-Integrity Projects

Buyers are increasingly prioritizing credits from projects that deliver measurable, long-term impact:

• Nature-based solutions: Carbon removal projects, particularly nature-based and engineered solutions, are expected to dominate the high-integrity credit space.
  
• Improved standards: The Integrity Council for the Voluntary Carbon Market (ICVCM) has introduced Core Carbon Principles (CCPs) to set new benchmarks for credit quality and transparency.

4. Buyers Are Driving Market Transformation

Companies using carbon credits as part of their climate strategies are outperforming non-users on key metrics:

• Emissions reduction performance: Firms that used credits reduced their Scope 1 and 2 emissions at a median rate of 3.6% per year (compared to 1.5% among non-users).
  
• Better disclosure and targets: Carbon credit users were more likely to disclose their emissions across all scopes and set credible reduction targets.

This further suggests that credits are being used as part of broader decarbonization strategies rather than as substitutes for direct emissions reductions.

5. Market Projections and Growth Potential

The carbon credit market is poised for significant growth:

• Projected market size: By 2030, the market could reach $7–35 billion, depending on demand and supply conditions. By 2050, it could grow to $45–250 billion if climate commitments are upheld.
  
• Regional trends: Regions with established carbon markets (e.g., Europe, Asia-Pacific) will see the highest uptake of credits as compliance and voluntary markets converge.

6. Opportunities for Project Developers

Developers need to align with evolving market demands to remain competitive:

• Transparency and accountability: Buyers are increasingly demanding clear evidence of measurable impacts, co-benefits, and alignment with new standards like CCPs.
  
• Focus on removals: Carbon removal projects (engineered or nature-based) are better positioned to attract buyers due to their ability to sequester carbon permanently.
  
• Leveraging new frameworks: Developers can tap into opportunities presented by the Paris Agreement mechanisms and CORSIA to scale their projects.

The 2025 carbon market landscape presents significant opportunities for stakeholders who prioritize high integrity, transparency, and alignment with global climate goals. Buyers should focus on sourcing credits from projects that meet rigorous standards, while developers must adapt to evolving quality benchmarks to secure funding and support.

Invert Insights.

💡 The report highlights that buyers are increasingly prioritizing integrity over volume, with a clear shift toward projects rated higher for transparency, impact, and adherence to new standards such as the ICVCM’s CCPs. This demand for quality aligns with enhanced scrutiny of carbon credits and their ability to deliver real, measurable emissions reductions or removals. This shift in focus represents a transformative moment for the market, laying the groundwork for sustained growth and increased trust in carbon credits as a tool for achieving climate commitments.

💡 Initiatives like CORSIA and potential integration into compliance markets signal a significant boost in demand for carbon credits. COP29’s progress on the PACM adds further momentum.

💡Developers should focus on delivering transparent, measurable outcomes to meet rising expectations from both buyers and regulators. 2025 offers an opportunity to build projects that align with stringent global standards, ensuring long-term viability and impact.