Where a Global Food Crisis and Climate Action Converge: Carbon Offset Markets
The Russian invasion of Ukraine has brought both energy and food security back to the global agenda in an environment already stressed by a pandemic, inflation, and supply chain disruptions. A warming climate and the geopolitical reconfiguration of the world order have severe implications for the production and distribution of energy and agricultural commodities, as well as short and long-term implications for climate action, particularly carbon markets.
First presented at the New Economy Climate Council hosted at the BloombergNEF Summit in New York on April 19, the following report assesses the Impacts of a Global Food Crisis on Carbon Offset Markets, and combines insights from the special food security briefing at the meeting as well as Council members’ contributions to the discussion.
“Carbon offsets are one of the many markets that could be impacted by the global food crisis resulting from the Russia-Ukraine war. Increasing food prices and a greater need for domestic agriculture production could lead to small short-term increases in offset prices and major long-term changes. In addition, these changes could cause permanent, irreversible drops in offset supply, shining a light on the quandary between hunger and climate.” — Kyle Harrison, BloombergNEF Head of Sustainability Research
The Bloomberg New Economy Climate Council seeks to address the most urgent issues in a crisis-ridden world while keeping net-zero solutions and targets in focus and advancing climate action. Learn more about our Council’s work in 2021, which focused on mobilizing cross-sector actors and informing successful climate policies as the private sector perspective contributing to the creation of NetZero Pathfinders.
The Climate Council’s exclusive research partner, BloombergNEF (BNEF), is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.