The Rising Demand for Nature-based Climate Solutions
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The Rising Demand for Nature-based Climate Solutions

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The following content is sponsored by Carbon Streaming Corporation .

The Briefing

  • Nature-based climate solutions include conservation, restoration, and land management projects that avoid, reduce or sequester greenhouse gas emissions.
  • Carbon credits from nature-based projects accounted for over 66% of transaction value in the voluntary carbon markets in 2021.

The Rising Demand for Nature-based Climate Solutions

The world’s forests are important carbon sinks that absorb a net 7.6 billion tonnes of carbon dioxide equivalent (CO 2 e) annually.

Therefore, regrowing, preserving, and managing forests and other natural carbon sinks is crucial to achieving net-zero emissions by 2050, and nature-based climate solutions are one way to do so.

Nature-based solutions refer to conservation, restoration, and land management projects that generate carbon credits by avoiding, reducing or sequestering greenhouse gas (GHG) emissions. With more organizations committing to climate targets, carbon credits from these projects have been in high demand.

The above graphic sponsored by Carbon Streaming Corporation looks at the growing demand for carbon credits generated by nature-based projects using data from Ecosystem Marketplace .

The Growth of Nature-based Carbon Credits

With the race to net-zero ramping up, carbon markets have been growing as a whole.

In fact, the value of total transactions in the voluntary carbon markets in 2021 reached nearly $2 billion —more than tripling since 2020. Forestry and Land Use carbon credit projects led the growth, accounting for over 66% or over $1.3 billion worth of transactions in 2021.

Here’s a full breakdown of transaction values by project category:

Transaction Year Forestry and Land Use Renewable Energy Energy Efficiency / Fuel Switching Household / Community Devices Other and Unknown Total
2016 $67M $25M $13M $18M $76M $199M
2017 $63M $32M $3M $12M $37M $146M
2018 $172M $41M $8M $30M $46M $296M
2019 $159M $60M $12M $25M $64M $320M
2020 $315M $102M $30M $36M $36M $520M
2021 $1,328M $479M $22M $43M $113M $1,985M

Figures have been rounded and may not sum up to the total.

Forestry and Land Use projects manage forests , soil, grasslands, and other land types to avoid or reduce carbon emissions or increase carbon sequestration. These projects generate one carbon credit for every tonne of CO 2 equivalent GHGs that they remove or avoid from entering the atmosphere.

At the same time, they may offer co-benefits that can advance the UN Sustainable Development Goals through improvements in biodiversity, soil health, air and water quality, and the livelihoods of local communities.

Therefore, Forestry and Land Use projects have a significant role to play in reaching net zero. In fact, according to research published in the scientific journal Nature , letting forests regrow naturally has the potential to absorb up to 8.9 billion tonnes of CO 2 annually through 2050, while still maintaining native grasslands and current food production levels.

Nature’s Role in Reaching Net Zero

For organizations looking to achieve their sustainability goals, nature-based solutions offer an opportunity to preserve and restore critical carbon sinks while supporting biodiversity and local communities. As a result, these types of carbon credits often trade at a premium, and their demand is skyrocketing, especially with more corporations committing to sustainability.

Carbon Streaming aims to accelerate a net-zero future. It pioneered the use of streaming transactions, a proven and flexible funding model, to scale high-integrity carbon credit projects to accelerate global climate action and advance the United Nations Sustainable Development Goals. It focuses on projects that have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential.

>>> Interested in learning more about Carbon Streaming? Click here to learn more .

Where does this data come from?

Source : Ecosystem Marketplace

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Mapped: Legal Sports Betting Totals by State

In 2022, legal sports betting in the U.S. totaled over $93 billion. Which states saw the most and least wagers? (Sponsored post)

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U.S. map with states colored according to the growth in house prices from Q1 1991 to Q1 2022. Utah had the highest growth.

The Briefing

  • Legal sports betting reached over $93 billion in the U.S. in 2022.
  • New York State had the most wagers, with a total of $16.3 billion.

Legal Sports Betting Totals by State

Which states are driving the legal sports betting market, and which have not yet become major players? The answer is fueled by each state’s legalization status, population, and other factors.

In this graphic from Roundhill Investments , we show a breakdown of legal sports betting by state.

A State View of Legal Sports Betting

In 2022, sports betting was live in 31 states plus Washington, D.C. Betting activity is highly concentrated, with the top five states accounting for 57% of the total reported legal wagers.

State/District Legal Sports Wagers in 2022
New York $16.3B
New Jersey $10.9B
Illinois $9.8B
Nevada $8.7B
Pennsylvania $7.3B
Arizona $5.5B
Colorado $5.2B
Virginia $4.9B
Michigan $4.8B
Indiana $4.5B
Tennessee $3.9B
Iowa $2.3B
Louisiana $2.3B
Connecticut $1.5B
Maryland $981M
New Hampshire $892M
Kansas $719M
West Virginia $569M
Rhode Island $533M
Mississippi $532M
Oregon $498M
Washington D.C. $216M
Arkansas $185M
Wyoming $145M
Delaware $82M
Montana $51M
South Dakota $7M
New Mexico Legal, no data
North Carolina Legal, no data
North Dakota Legal, no data
Washington State Legal, no data
Wisconsin Legal, no data
Massachusetts Legal, became operational in 2023
Ohio Legal, became operational in 2023
Florida Legal, not yet operational
Maine Legal, not yet operational
Nebraska Legal, not yet operational
Alabama Not legal
Alaska Not legal
California Not legal
Georgia Not legal
Hawaii Not legal
Idaho Not legal
Kentucky Not legal
Minnesota Not legal
Missouri Not legal
Oklahoma Not legal
South Carolina Not legal
Texas Not legal
Utah Not legal
Vermont Not legal

New York State had the most legal sports betting, largely because it was the most populous state to allow online sports wagers so far. Notably, 1.2 million accounts were created in the first 10 days of legalization. New York also has multiple teams across all four major sports—football, basketball, baseball and hockey—which boosts local interest.

New Jersey took the second spot. The state challenged the federal ban against legal sports betting, winning their case in 2018. New Jersey has since rapidly established itself as a sports betting hub, thanks to its established gaming regulations, prime location near New York City and Philadelphia, and strong gaming and tech infrastructure.

Illinois had the third highest annual total, and beat its prior state record with $1 billion in wagers in October alone. One key factor was a change to the registration process in 2022, which allowed residents to sign up online rather than in-person at a casino. Not only that, the state is home to some popular teams including the Chicago Bulls, who have the third-largest social media following of any NBA team.

Smaller, and Not Yet Legal, Markets

South Dakota had the lowest legal sports betting of the states with reported totals. The state only allows in-person betting in the city of Deadwood and at tribal casinos, with the latter not reporting the total bets they receive. Online sports betting is not yet legal in the state unless the bettor is physically at a Deadwood casino.

Montana had the second smallest total bets. The state has a small population and no major league professional sports teams. Not only that, sports betting in the state is government-run rather than a competitive market. Like South Dakota, online bets can only be placed when the bettor is physically present at a retailer.

Notably, the most populous states of California, Texas, and Florida do not yet have legal and/or operational sports betting. Together, the three states represent 27% of the total U.S. population. Sports betting was initially legal in Florida but has been paused due to ongoing legal proceedings.

Expanding Geographic Reach

Legal sports betting has expanded significantly since the federal ban was lifted in 2018. However, 17 states have not yet legalized sports betting in any form, and some states could see growth from allowing online betting.

As more states proceed with legalization, the consumer base is likely to continue expanding. This creates a revenue opportunity for sportsbook operators. In fact, Goldman Sachs estimates that the total revenue opportunity could grow from $900 million in 2021 to $39 billion by 2033.

Looking for exposure to the growing sports betting industry? Explore Roundhill’s sports betting ETF, $BETZ .

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