Australia and New Zealand Carbon Market Insights

All modelling that limits global warming to under 2°C requires both eliminating deforestation as well as reforestation of hundreds of millions of hectares by 2050, to remove carbon from the atmosphere.

“Removals” are critical to achieving net zero, which is a state in which greenhouse gases released into the atmosphere are balanced by emissions removals out of the atmosphere. Further modelling of potential activities that can limit global warming to under 2°C by 2030 indicates that approximately one third of cost-effective mitigation by 2050 can be provided by Natural Climate Solutions.

This transformation in land use will require the mobilisation of hundreds of billions of dollars of investment. This investment must be channelled into Natural Climate Solutions—the protection of threatened forests, improved management of forestry and agricultural production systems, and reforestation of landscapes.

Read on for more information about New Zealand’s Emissions Trading Scheme and Australia’s Emission Reduction Fund, and the Investment Implications.