Right now, voluntary carbon markets are still in their infancy. Having surpassed $10 billion in transaction value in 2022, there is huge room for growth – as well as a number of catalysts. The Working Group on Scaling Up Voluntary Carbon Markets predicts that to meet the climate change goals set out in the Paris Agreement, voluntary carbon markets will need to grow 15-fold by 2030 and 100-fold by 2050 from their current levels. from  year 2020 . These are returns that will make any investor sit up and take notice.

1. Carbon mutual funds and ETFs

One of the easiest and least risky ways to invest in carbon markets is through a fund. Since many such funds have diversified holdings, this helps reduce the risk of investing in one, although in exchange your potential return will also be lower.