Why do prices vary across different types of carbon projects?
There are many reasons for the cost disparity for carbon credits from various projects including size, location, project type, and ongoing monitoring/verification expenses. Some projects that offer significant co-benefits often command a premium in the market, particularly benefits that align with contributions towards Sustainable Development Goals (SDGs). Since carbon credits are a market-based mechanism, credit […]
- There are many reasons for the cost disparity for carbon credits from various projects including size, location, project type, and ongoing monitoring/verification expenses. Some projects that offer significant co-benefits often command a premium in the market, particularly benefits that align with contributions towards Sustainable Development Goals (SDGs).
- Since carbon credits are a market-based mechanism, credit prices are subject to supply and demand fundamentals, meaning the market price will go up when there is more demand and/or less supply.
