Carbon rights are more credible and valuable with technology
Sustainability-related investment is clearly growing dramatically, with a multiple of approximately $51 billion in 2020 and up to $120 billion in 2021, according to data. There has been a significant change in corporate investment and attitude toward ESG and sustainable development, from being defensive at first to being proactive and creating opportunities.
One of the most hotly debated topics in sustainable development is carbon rights and carbon trading. Carbon trading refers to the process of manufacturing and trading in which companies emit carbon dioxide and can trade it to obtain a certain amount of emission rights to achieve the goal of carbon neutrality. As countries around the world look to carbon trading as a way to reduce carbon emissions and combat climate change, the number of carbon trading markets has increased significantly.
According to a report published by Credit Suisse, the carbon trading market is growing rapidly, with the value of the global carbon market reaching US$270 billion in recent years, with the EU being the largest, at around US$150 billion, followed by China at over US$40 billion. As the carbon market becomes more popular, the trading volume is becoming more and more massive, $800 billion in 2021, about 8 times more than in 2017, and the rapidly increasing trading volume shows the huge potential of carbon business opportunities in the market.
SDChain Alliance also notes that as the ESG issue and the carbon trading market continue to grow, there is a growing concern and discussion on how to identify carbon rights that truly meet the standards and the basis of the standards used. After the ESG Summit, the SDChain Alliance has been actively visiting and discussing with industry, academia and research institutions to find a feasible solution to the problem. The goal is to find a feasible way to verify that carbon rights and carbon trading are valuable, not just a way to bring about a change in business models with new technologies.