ReFi Nature Statistics

CM

Effective action will require concerted and sufficient investment, knowing also that the costs of inaction will be far higher. Developing countries will need up to US$6 trillion by 2030 to finance not even half of their climate action goals [17].

Mark Carney, the former Governor of the Bank of Canada and England and who now leads the TaskForce of Scaling Voluntary Carbon Markets, estimates that the Voluntary Carbon Market will be a \(50-\)100B market by 2030. This is 50–100 times bigger than the market today. It is our belief that ReFi will play a significant role in helping to scale and improve these markets going forward [21].

VCM

Voluntary Carbon Market (VCM) is now estimated at almost $2 billion. This number is up from $1 billion in 2021, $473 in 2020, and $320 in 2019.52 Now, with Article 6 of the Paris Agreement from COP26 set to further bolster the VCM, quality credits will be in even greater demand [9]. MRV tools make up only 3% of carbon removal venture funding at just $65 million [9]. The VCM is predicted to grow exponentially: from $2 billion in value in 2021 to $50 billion in 2030 [2].

GHG

83 percent of NDCs state the intent to make use of international market mechanisms to reduce greenhouse gas emissions.

CT

Among developing countries, some of the largest reductions are in major players such as China (17%), India (22%) and South Africa (9%). All Latin American countries (but not those of the Caribbean) reduce their emissions by between 3% and 6%. Where welfare is concerned, reducing emissions causes welfare losses in Annex I and energy-exporting countries. Developing countries such as China and India show welfare gains, as do Annex I countries such as Japan and the EU 15. However, it is important to note that carbon trading becomes a major source of welfare gains for China and India (table 11). China reports a US$ 2.6 billion welfare gain and India a US$ 1.2 billion gain. As discussed previously, it is cheaper to reduce emissions in China and India than in other developing countries, which might explain why they capture most of the welfare gains from carbon trading. For Latin American countries such as Brazil and Mexico, welfare gains from carbon trading are small and do not make up for possible welfare losses from other sources such as the terms of trade or resource allocation [20].