As the world confronts climate change, companies, policymakers,
and individuals recognise the need for urgent action. Businesses
embracing sustainability can gain a competitive edge by addressing
emissions with tailored solutions. One key tool is the carbon
market, where entities buy, sell, and retire carbon
allowances.
For years, the primary capability managing emitters' carbon
challenges has been comprised of policy, compliance and technical
expertise. The emergence of carbon markets has added a new
dimension to this landscape. These markets, including cap-and-trade
systems, serve as platforms for players to engage in transactions
and retirements of carbon emission allowances and credits. Their
primary aim? To accelerate greenhouse gas emissions reduction via
economic incentives. The burgeoning scale of global carbon markets
presents opportunity for enterprises to expedite the construction
of commercial carbon teams. Building internal capabilities not only
enhances resilience but also bolsters competitive advantage in an
increasingly carbon-conscious marketplace.
This article, published by Alvarez & Marsal Southeast Asia
& Australia (SEAA) experts Graham MacGregor and Daniel Hund,
explores how organisations can navigate carbon markets to mitigate
risk, unlock value, and de-risk with carbon credits.
This article contains significant contributions from Hayes O'Connor, A&M Manager.
Originally published 01 May 2024
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