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Carbon markets: financing a greener future or buying absolution? – American Century Investments®

The market for carbon credits could be worth upward of $50 billion in 2030. Does this represent an opportunity for investors, or is there is a risk of exploitation to consider when evaluating a company’s use of offsets?

Posted on Apr 12, 2023

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... Key takeaways:
  • Many companies will need carbon credits/offsets, in addition to directly reducing their emissions, to lower their carbon footprints enough to achieve net-zero emission targets. 
  • Carbon credit markets offer 'positives', such as financial incentives to use green energy and develop new technologies, but downsides include 'greenwashing' risks. 
  • Emerging markets play a special role in global carbon markets and could benefit from an inflow of capital, but there is a risk of exploitation.

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