Carbon credits are used to finance and incentivize projects that reduce greenhouse gas emissions and mitigate climate change. The price of carbon credits is influenced by various factors including market-based mechanisms, regulatory policies, credit quality, project type and location, and external factors such as global economic conditions. Carbon credit prices can vary significantly depending on the market and region, and have generally experienced an upward trend in recent years due to increasing efforts to combat climate change.
The EU Emissions Trading System and California Cap-and-Trade Program are two major carbon credit markets that have experienced volatility in prices over the years. Voluntary markets also exist where companies and individuals purchase carbon credits to offset their emissions, and the prices in these markets can vary widely depending on market demand and credit quality.
It’s important to note that carbon credit prices can change over time and are influenced by a range of factors, and up-to-date information should be sourced from reliable sources and market data.