A new report by the Global Financial Markets Association (GFMA) and Boston Consulting Group (BCG) titled, “Unlocking the Potential of Carbon Markets to Achieve Global Net Zero”, finds that close to 80% of greenhouse gas emissions are not covered by regulated carbon pricing today. In order to meet the Paris Agreement goals, price levels need to increase to an estimated $50-150/tonne average by 2030 from the current global average of <$5/tonne.

To do this, the report highlights the role and importance of both compliance and voluntary carbon markets (a description of which can be found in the below graphic) to the low-carbon transition.