Amid a flurry of net-zero commitments, climate change and environmental activism, companies have been buying and selling carbon credits to reduce their emissions footprint. But the market is collapsing. Demand for the credits has plummeted over the past two years, sending prices plummeting. The recent COP28 climate conference was supposed to fix the problem, but it failed. “There are fewer credits being issued, but demand is falling faster than supply,” Yvonne Lam, a carbon market researcher at Rystad Energy, told Business Insider. The price to offset one metric ton of carbon dioxide, or one credit, is down to $0.64, down from $18 in January 2022, according to one carbon credit. Another data source, the Platts Nature-Based Avoidance price, shows a decline to $3.90 per metric ton of carbon dioxide from $11.60 last year, according to S&P Global. Demand is falling due to the lack of standardized rules for governing carbon markets. Recent reports and studies questioning the reliability of the system have highlighted the lack of rules. (Arun Soni)