How increasing carbon prices present new opportunities in the market

The Problem

According to the World Meteorological Organisation (WMO), 2011–2020 was the warmest decade on record. With the world experiencing its hottest month ever in July last year, it seems very likely that recent years will continue to rank among the warmest ever recorded. These “records” are alarming and point toward increasing disruption of global systems.

Two Trends Colliding

One key mechanism to combat climate change is the pricing of carbon emissions through compliance markets such as the EU Emissions Trading System (EU ETS). The idea is simple: put a price on carbon pollution to reflect the real cost of greenhouse gas emissions.

In Europe, carbon prices have been rising significantly due to ambitious climate policy and increased financial participation. As a result, the cost of emitting carbon is becoming a critical factor in corporate decision-making. A recent survey by Refinitiv found that 63% of companies consider the EU ETS a decisive factor in investment decisions—a trend that is likely to continue.

At the same time, companies are increasingly looking beyond compliance toward ways to actively reduce or offset their emissions. This is where voluntary carbon markets (VCMs) are gaining traction, enabling businesses to invest in projects that remove or avoid carbon emissions outside regulated frameworks.

Emerging Opportunity: Agriculture & Carbon Removal

A recent McKinsey report highlights the importance of improved farming practices in reducing greenhouse gases. Given that around 50% of habitable land is used for agriculture, the potential for carbon sequestration is substantial.

This has led to growing corporate interest in regenerative agriculture, with companies such as Patagonia, Nestlé, and DSM investing in practices that both improve soil health and capture carbon. These activities often generate carbon credits that can be sold in voluntary markets.

Technology Innovation

This shift has driven the emergence of a new ecosystem of technology players operating primarily in voluntary carbon markets.

Indigo Agriculture, which has raised $1.2B in funding, has built a platform connecting buyers and sellers of grain produced through regenerative practices. Farmers can monetise these practices by generating and selling carbon credits, with buyers including Barclays and JPMorgan Chase.

Similarly, Nori has developed a carbon removal marketplace, partnering with Truterra and securing Microsoft as an early buyer. Meanwhile, Rabobank and Microsoft have collaborated with Renature to connect corporations with smallholder farmers through agroforestry projects.

These platforms illustrate how voluntary markets are scaling rapidly alongside regulated systems like the EU ETS—but serving a different function.

Investment Opportunities

Whether through venture capital, partnerships, or M&A, it is clear that new opportunities are emerging at the intersection of climate policy, agriculture, and technology.

However, identifying and acting on these opportunities is increasingly complex. Factors such as globalisation, constrained R&D budgets, and rapid innovation cycles make it harder for companies to stay ahead. Passive approaches are no longer sufficient.

That’s where Venture IQ steps in. Through our data platform and analyst expertise, we help organisations navigate this complex landscape—identifying relevant players, technologies, and opportunities across evolving carbon markets.