The voluntary carbon market reset of 2023–2025 left many institutional participants uncertain about the durability of price signals. Drawing on our research presented at the Fields Institute and IFORS, we identify three distinct pricing regimes now emerging — each with different volatility characteristics and integrity standards. Long-horizon investors don’t need to pick one regime, but their portfolio construction should plan for the divergence.
Article · Sustainable Finance
Carbon Markets After the Voluntary Reset — A Practitioner’s Lens
Three pricing regimes are emerging across compliance and voluntary carbon markets. Long-horizon investors don't have to pick one — but they do have to plan for all three.
Bruno G. Kamdem
·
February 8, 2026
·
9 min read