ANALYSIS: China’s push to curb superpollutants creates carbon credit potential
China’s policy efforts to mitigate superpollutants have advanced over the past few years, creating new potential for carbon credit development, experts told Carbon Pulse.
Read MoreANALYSIS: Kenya’s limit on ITMO sales highlights Article 6 supply constraints, and may force developers back onto VCM
Kenya’s recent announcement that it will limit Article 6 transfers to 10 million Internationally Transferred Mitigation Outcomes (ITMOs) between 2026 and 2030 surprised many market participants, particularly given the scale of the country’s existing carbon project pipeline, and may signal a fundamental shift for project developers relying on voluntary prices currently languishing in single-digit figures.
Read MoreANALYSIS: New SBTi corporate climate standard offers path to scale nature-based carbon finance, even if onus is on tech-based removals
Nature-based solutions deserve stronger support in the newly released Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard Version 2.0, though they still have a clear pathway to scale, according to some carbon market stakeholders, who pointed to the standard’s prioritisation of engineered removals to help companies tackle hard-to-abate emissions later down the line.
Read MoreANALYSIS: New SBTi standard opens door for carbon markets, but guardrails will temper near-term demand
The Science-Based Targets initiative’s (SBTi) long-awaited new Corporate Net-Zero Standard was widely welcomed for recognising companies that address their ongoing emissions, including with voluntary ‘high-integrity’ credit buying – but stakeholders critiqued its lack of mandate on near-term action, which they said will significantly dampen the immediate market signal.
Read MoreVCM MONTHLY: Retirements and issuances rise while CORSIA prices slide
Carbon credit issuances and retirements bounced up in May year-on-year across the voluntary carbon market while benchmark CORSIA prices fell 22% to end the month around $10/tonne, their lowest level since June 2024.
Read MoreClimate Litigation Roundup: International community stands firm on climate obligations as domestic pushback grows
The past month in climate litigation highlighted a widening divide between international and domestic climate law, as the former increasingly affirms that governments have an obligation to address climate change, while the latter are moving in the opposite direction, restricting avenues for relief against fossil fuel producers and high-emitting industries.
Read MoreANALYSIS: States, industry groups urge SCOTUS to curb local climate liability suits against oil companies
A broad coalition including the US federal government, states, business groups, legal scholars, and tribal interests has urged the US Supreme Court (SCOTUS) to block a landmark climate damages lawsuit against two oil companies, arguing it would let local governments regulate GHG emissions through state tort law.
Read MoreANALYSIS: Potential EU CBAM-linked Article 6 demand could reach 17 Mt per year, as market questions “arbitrary” cap
Annual demand for Article 6 carbon credits, generated by proposed rules to allow them to be deducted from EU Carbon Border Adjustment Mechanism (CBAM) fees, could theoretically rise to more than 17 million tonnes through 2040, analysts have said, but limitations imposed by Brussels mean that, at least in the near term, buying is likely to be a fraction of that potential volume.
Read MoreANALYSIS: EU opening for Article 6 in CBAM sends “positive signal” for credit demand, but puts climate credibility at risk
Allowing EU importers to deduct international carbon credits from their Carbon Border Adjustment Mechanism (CBAM) fees is an endorsement of the UN’s Article 6 carbon markets – but some worry it may come at the expense of the mechanism’s climate integrity.Â
Read MoreANALYSIS: Brazil faces a ‘missing middle’ for nature finance
International appetite for Brazil’s nature economy is growing, but much of the capital still struggles to reach projects on the ground.
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