Impact
Emissions markets are a critical tool for achieving the Paris Agreement goals. They put a price on pollution
and reduce emissions at the lowest cost to society.
and reduce emissions at the lowest cost to society.
23% of global emissions are covered by emissions markets. How do they impact climate change?
- Annual emissions are strictly monitored by governments.
- Emitters, such as power utilities, are required to deliver carbon allowances corresponding to their annual emissions.
- A declining supply of carbon allowances causes a rise in prices, incentivizing emitters to decarbonize, e.g. through fuel-switching.
- Unlike other climate initiatives that are at risk of greenwashing, emissions markets cause permanent and truly additional CO2 reductions.
“If greenhouse gas emissions do not come at a price, we will continue to treat those emissions economically as if they were non-existent. The solution to this problem is a price on CO2 emissions connected to the market.”
--- Climate Alliance ---
Market-based solutions are empirically shown to effectively remediate negative externalities, and to increase funding towards high-impact projects.
Case Study
Emissions Markets as a Successful Policy Tool
Case Study
California’s Greenhouse Gas Reduction Fund
How does investing through Access create an impact?
- By buying and holding carbon allowances today, supply is withheld from the market, increasing the price, and making it more expensive for emitters to pursue carbon intensive activities, e.g. using dirty fossil fuels.
- This “withholding effect” means emitters are incentivized, much earlier than they normally would be, to switch away from fossil fuels and make investments in green technology & infrastructure.
- Making these investments earlier, even by just 5-10 years, can have a meaning ful effect on delaying temperature rise, providing society valuable time to develop technological breakthroughs to avoid climate change.
Emissions markets are a critical tool for achieving the Paris Agreement goals. They put a price on pollution and reduce emissions at the lowest cost to society.
23% of global emissions are covered by emissions markets. How do they impact climate change?
- Annual emissions are strictly monitored by governments.
- Emitters, such as power utilities, are required to deliver carbon allowances corresponding to their annual emissions.
- A declining supply of carbon allowances causes a rise in prices, incentivizing emitters to decarbonize, e.g. through fuel-switching.
- Unlike other climate initiatives that are at risk of greenwashing, emissions markets cause permanent and truly additional CO2 reductions.
*Illustrative data post-2023
“If greenhouse gas emissions do not come at a price, we will continue to treat those emissions economically as if they were non-existent. The solution to this problem is a price on CO2 emissions connected to the market.” – Climate Alliance
Market-based solutions are empirically shown to effectively remediate negative externalities, and to increase funding towards high-impact projects.
Case Study
Emissions Markets as a Successful Policy Tool
Case Study
California’s Greenhouse Gas Reduction Fund
How does investing through Access impact climate change?
- By buying and holding carbon allowances today, supply is withheld from the market, increasing the price, and making it more expensive for emitters to pursue carbon intensive activities, e.g. using dirty fossil fuels.
- This “withholding effect” means emitters are incentivized, much earlier than they normally would be, to switch away from fossil fuels and make investments in green technology & infrastructure.
- Making these investments earlier, even by just 5-10 years, can have a meaning ful effect on delaying temperature rise, providing society valuable time to develop technological breakthroughs to avoid climate change.
