As we witness the on-going impacts of the climate crisis, corporations and individuals are reviewing climate predictions and how to approach environmental policies in 2024.
While much uncertainty remains, great strides have been made towards leveraging private infrastructure and funding towards critical nature projects. Some of these projects include supply chain decarbonisation, reducing natural resource usage, and investing in biodiversity restoration.
This articles delves into the most cited climate market predictions for the year, including:
- The on-going climate market advancements that will see continued growth in 2024
- Up and coming trends in the climate market
- New trends expected to gain traction in 2024
Set for growth
Carbon market standards
While the carbon market faced valid criticisms in 2023, decarbonisation and carbon offsetting remains a leading avenue for companies looking to create nature-positive impacts.
With that in mind, Climate Trade has predicted that growing criticisms will force big players in the carbon market to unite and rebuild trust in the market. Voluntary carbon market players such as the SBTi have pledged to unite and spearhead this charge.
Ultimately, studies show that organisations who invest in carbon credits are decarbonising their product supply chains faster than those who don’t. Renewed action and global standards will help to rebuild a solid market that ensures verifiable and impactful environmental progress.
Climate economy
With growing commitment from global public and private bodies to ensure a more sustainable future, the climate economy is expected to grow.
We can expect to see continued investment in more sustainable infrastructure, climate adaptation, nature-positive business strategies and biodiversity projects.
On the rise
Biodiversity credits
While the carbon credits market faces scrutiny, nature-based or biodiversity credits are expected to see significant development. Biodiversity credits are poised to allow businesses to support nature and habitat-related conservation projects and quantify their impacts.
Projects will include restoration of ecosystem services, limiting deforestation and reducing the impact business production has on the natural world. With the biodiversity crisis looming, it’s no wonder that these types of credits are gaining traction.
Adrian Wons, CEO and Founder at Senken, declared on LinkedIn that he believes 2024 is the year that the first-ever certified biodiversity credit will be sold.
Enhanced private environmental strategies
As more businesses strive to reach net-zero emissions, the private sector will continue to invest in nature-positive strategies with a view for long-term impact and permanent transformation.
Excuses for not taking on extensive nature-based frameworks in the business world are becoming hard to defend. Regulations like the CSRD and bodies like the SBTi are setting parameters for the implementation and measurement of nature-positive strategies. Employees and consumers are increasingly in favour of working for companies with positive environmental impact. As such, senior leaders are being held to account when it comes to their environmental policies.
Up and coming
Climate adaptation focus
While many nature-positive strategies and solutions focus on the mitigation of the climate crisis, adaptation is quickly gaining in importance. Climate adaptation refers to supporting communities to live and survive in a rapidly changing global environment. As such, it’s predicted that startups focused on climate adaptation will become more prominent. These companies will likely support businesses, communities and individuals to adapt and become resilient in the face of growing climate concerns.
Businesses are already noting the impact the climate crisis is having on supply chains and global economies. As such, they are expected to continue to invest in climate adaptation. From adopting robust supply chain frameworks to investing in more sustainable technologies, companies are increasingly integrating nature considerations into their operations.
Consumer behaviour
As environmental concerns escalate, consumers are becoming increasingly conscious of the ecological impact of their purchasing decisions. A recent report by Bain & Company revealed that 64% of global consumers have reported high levels of concern about sustainability. The majority of this group also noted that their concerns have grown after witnessing extreme weather events linked to climate change.
Companies that neglect or downplay their environmental responsibilities are witnessing a shift in consumer loyalty. Many individuals prioritise eco-friendly practices, seeking out businesses that demonstrate a commitment to sustainability, carbon footprint reduction, and ethical sourcing.
Conclusion
Thankfully, there’s evidence that a promising shift towards sustainability and eco-conscious practices is becoming preferable for the private business market. Businesses and consumers alike are embracing a future that prioritises environmental responsibility.
This momentum benefits the planet but also presents lucrative opportunities for those at the forefront of the green revolution. With these encouraging developments, it’s clear that the collective efforts towards a greener economy is gaining momentum.
Dulra is developing a cutting-edge AI data management platform designed to help nature-based solution projects secure funding by converting raw ecological, climate and socio-economic data into actionable reports for funders. Learn more.
