The Brazilian carbon market is another market segment where our Brazilian subsidiary, Banco ABC Brasil (BAB), is actively working to support its clients. The size of the global compliance carbon market is now over US$800 billion covering 25% of global emissions, dwarfing the voluntary carbon market, valued atUS$2 billion. Europe currently leads the compliance market, but that dominance is expected to shift as emerging markets in Brazil, Turkey, and India take shape. The expansion of the global compliance market will benefit both the compliance and the voluntary carbon credit markets.
In response, BAB has set up Carbon Credit Solutions Desk to support its clients. This solution allows our Brazilian clients to purchase nature-based voluntary carbon credit to neutralise their residual emissions and complement the decarbonisation solutions already utilised across their value chain.