Full Title: Putting Carbon Markets to Work on the Path to Net Zero
Author(s): Asilah Azil, Vincent Barnard, Christopher Blaufelder, Cindy Levy, Thomas Nielsen, Badrinath Ramanathan,
Publisher(s): McKinsey & Company, GIC, Singapore Economic Development Board (EDB)
Publication Date: October 28, 2021
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Today, institutional investors participate in these markets only to a limited extent. Structural obstacles prevail, and the market dynamics are relatively unclear. Yet, the picture is changing. This joint paper from GIC, the Singapore EDB, and McKinsey discusses the rapid emergence of carbon markets as a viable asset class. It suggests that institutional investors could play a critical role in helping corporations and nations use these markets to achieve global climate goals while also fulfilling institutional investors’ own mandates. While it does not issue an investment recommendation, it aims to shed light on the evolution of carbon market mechanisms and their relevance to institutional investors.