Core Insights - The global carbon market is transitioning to an implementation phase following the COP meeting in Brazil, with over 30 countries developing Article 6 strategies under the Paris Agreement [1] - Carbon Markets 2.0 is characterized by high integrity standards, essential for achieving emission reduction goals, presenting significant opportunities for financial institutions [2] - The engagement of financial entities like banks and asset managers is crucial for evolving carbon markets with discipline and transparency, while also creating new business opportunities [3] Market Opportunities - Carbon markets are seen as an untapped opportunity for rapid climate action, allowing industries to address emissions with limited current solutions and generating debt-free climate finance for developing economies [4] - Despite recent slowdowns, the volume of carbon credit retirements in the first half of 2025 was the highest on record, driven by increasing corporate climate commitments [5] - Businesses are seeking stability, consistency, and transparency in the carbon market, which are essential for restoring investor confidence and enabling market interoperability [6] Market Growth Projections - MSCI projects the global carbon credit market could expand from $1.4 billion in 2024 to as much as $35 billion by 2030, and between $40 billion and $250 billion by 2050, contingent on institutions having the necessary capital and infrastructure [7]