Ten-fold increase in carbon offset cost predicted  

The cost of offsetting corporate carbon emissions needs to increase ten-fold to drive meaningful climate action, says a landmark report by UCL and Trove Research. Current prices of carbon offsets are unsustainably low and need to increase significantly to encourage greater investment in new projects that remove carbon from the atmosphere. If prices stay low companies could be accused of greenwashing their emissions, as real emissions reduction and carbon removals are more costly than today's prices. Prices of carbon credits used by companies to offset their emissions are currently low, due to an excess of supply built up over several years, together with issues over whether payments for credits really result in additional reductions in carbon emissions. According to the research, titled  Future Demand, Supply and Prices for Voluntary Carbon Credits - Keeping the Balance , without this surplus, prices would be around $15/tCO2e higher, compared to $3-5t/CO2e today. The research shows, however, that the surplus will not last forever, with demand for carbon credits expected to increase five to ten-fold over the next decade as more companies adopt Net Zero climate commitments. This growth in demand should see carbon credit prices rise to $20-50/tCO2e by 2030, as more investment is required in projects that take carbon out of the atmosphere in the long-term.