EDF's New York Climate Week panel took stock of where carbon markets stand and what is slowing them down. Carbon pricing systems now cover roughly 29% of global emissions and generated over $107 billion for governments in 2025, but average prices are still too low to drive the needed cuts. In voluntary markets, the panel argued the main problem is weak demand, not credit quality. Buyers want clearer rules on how to use credits and what counts as a credible climate claim. On interoperability, the takeaway was pragmatic: no single global carbon market is coming, and that is fine. The goal is compatible systems built on shared standards, transparent accounting, registry links, and mutual recognition. Examples include Washington state linking with California and Quebec, and Indonesia building out its national carbon exchange. EDF frames this as trust-building between jurisdictions, not forced harmonization. Also notable: ICVCM's Core Carbon Principles label is trading at a 19% premium over non-labeled credits, a sign that integrity standards are starting to be rewarded. Whether that premium lasts depends on whether compliance systems like Singapore's carbon tax keep accepting international credits and whether demand actually scales.
