ANALYSIS: Disclosure on current, future use of carbon offsets to pave way to integrity pairing
Sunlight may soon shine into the opaque world of carbon credit use, with offset disclosure a key requirement under forthcoming corporate reporting rules – paving the way to credibility and integrity assessments at both the investor and policy-maker levels.
Read MoreANALYSIS: Japan seeks Asian region to adopt broader use of technologies for lower emissions path
Japan is seeking to enhance its role in the promotion and financing of low carbon projects in Asia, with a focus on kickstarting what officials term “transition technologies” that would nevertheless prolong the use of fossil fuel consumption if the emissions generated from that use, such as in power generation, are reduced or abated by those technologies.
Read MoreANALYSIS: Blockchain carbon industry looks beyond controversy as ‘the Merge’ wipes out emissions
Participants in the fledgling on-chain carbon market are looking to move past public perceptions of the industry’s unfeasibly high carbon footprint after the world’s second-biggest blockchain on Thursday made operational changes that will shed 99.5% of its energy consumption.
Read MoreANALYSIS: Energy, industrial, and aviation firms tend to pay below-average for carbon credits
Companies active in the energy, heavy industry, and aviation sectors tend to pay below-average for their carbon offsets, according to retirement data collated by a climate analytics firm, while car manufacturers and tech firms have historically purchased credits at a higher price than most others.
Read MoreANALYSIS: Could VCM regulatory oversight move beyond US futures?
Regulators’ interest in the voluntary carbon market (VCM) has grown alongside its bloom, with the US Commodity Futures Trading Commission (CFTC) the latest US agency contemplating oversight through a variety of channels that stretch beyond derivative products.
Read MoreANALYSIS: Significant work remains following first Article 6.4 Supervisory Body meeting
The appointed body overseeing the UN’s new carbon crediting mechanism met for the first time last week to hammer out an agreement on several procedural elements crucial to advance Article 6.4, but left much to be done ahead of a targeted end-2023 timeline for trading to begin.
Read MoreANALYSIS: More than 100 mln sovereign forest credits set to reach VCM by autumn
Governments from tropical forest countries are poised to issue more than a hundred million sovereign carbon credits, which are slated to hit the voluntary carbon market (VCM) this autumn – adding significant weight to a forest credit inventory that historically derived from a scattering of smaller-scale projects.
Read MoreANALYSIS: Buyer guidelines seen triggering demand blip as VCM pivots
Guidelines to raise integrity in the use of carbon credits may cause a short-term dip in demand as buyers of lower quality units adjust their strategy or withdraw entirely, but many stakeholders believe that this will benefit the voluntary carbon market in the long run.
Read MoreANALYSIS: Indonesia’s pilot ETS, carbon tax launch pushed to next month, lays the groundwork for greater ambition
Indonesia is set to launch its pilot cap-trade and carbon tax system for coal-fired power stations next month, but the government has yet to reveal many of the finer details of how it will work.
Read MoreANALYSIS: ‘Carbon neutral’ fuel trades go underground as oil majors fear criticism
Oil and gas players are continuing to strike ‘carbon neutral’ fuel deals despite a major drop off in announcements, observers told Carbon Pulse, with the firms believed to be making secretive trades involving millions of carbon credits to offset fossil fuel shipments even as they struggle to agree on how to report them.
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