ARC Energy Ideas Podcast: Carbon Markets in Uncertain Times: Insights from Michael Berends at ClearBlue Markets
Carbon markets are at a crossroads. As global policies shift, voluntary markets face increased scrutiny, and compliance systems evolve, businesses and policymakers grapple with what comes next.
On a recent episode of the ARC Energy Ideas podcast, Michael Berends, CEO and Co-founder of ClearBlue Markets, shared his expert insights into these pressing issues. Drawing on nearly two decades of experience, Michael discussed the opportunities and challenges facing compliance and voluntary markets, offering a nuanced perspective on what lies ahead.
🎧 Listen to the full episode here
Here’s a summary of the key topics covered:
Carbon Markets: More Than Just Compliance
Michael highlighted how the perception of carbon markets has shifted. They’re no longer seen as merely a cost or burden but as a driver of innovation and investment. Whether navigating compliance markets in California or exploring voluntary initiatives globally, businesses can turn carbon pricing into a strategic advantage.
The Voluntary Market Debate
Recent criticism has cast doubt on the effectiveness of voluntary carbon markets, raising questions about the legitimacy of emission savings. Michael addressed this head-on, explaining how such scrutiny can overshadow the positive impact of these markets. He also discussed the role of new standards, like the Core Carbon Principles, in restoring trust while cautioning against the added complexity they bring.
Why Compliance Markets Are Resilient
Despite political uncertainty, compliance markets have proven their strength. Michael shared examples from the EU Emissions Trading System (EU ETS) and California’s cap-and-trade system, which have withstood significant challenges. These systems are critical to global decarbonization efforts and demonstrate how stable policy frameworks can drive long-term investment.
Canada’s Fragmented Carbon Policies
Michael also addressed Canada’s patchwork of carbon markets, describing how the country’s 11 different systems create inefficiencies that limit market liquidity and complicate decision-making. He stressed the need for greater alignment to unlock the full potential of these markets.
The Critical Need for Market Certainty
One of Michael’s key messages was the importance of policy and market certainty. Without clear, stable frameworks, businesses face significant challenges in planning long-term investments in emissions reduction. Certainty is essential for the success of both compliance and voluntary markets.
This podcast is a must-listen for anyone interested in the future of carbon markets. Whether you’re a business leader, policymaker, or climate advocate, this episode offers valuable insights into navigating the complexities of this evolving landscape.