ANALYSIS: Cookstove projects face tougher standards, more competition in race to sell carbon credits
The clean cookstove sector is rapidly transforming from a voluntary model to a high-integrity, data-driven carbon market that will satisfy the compliance stipulations for international trade in UN markets, experts and industry participants have said.
Read MoreANALYSIS: From extreme scarcity to buyer uncertainty – is CORSIA’s greater challenge now demand?
After years with only one eligible supply source, credits approved for CORSIA use in its current phase have begun to steadily flow onto the market, reaching above 30 million earlier this year, but in light of an escalating war in the Middle East that has disrupted international air travel and jet fuel flows, as well as a lack of legislated penalties for non-compliance, some participants are now questioning whether the global aviation offsetting scheme has a growing demand problem.
Read MoreCF Asia: ANALYSIS – CORSIA wholesale acceptance of PACM credits seen as unlikely, say market participants
The aviation sector’s international offsetting programme, CORSIA, is unlikely to accept all credits issued under one of the Paris Agreement’s Article 6 mechanisms, market participants told Carbon Pulse on Wednesday.
Read MoreCF Asia: ANALYSIS – Early glut could cap Article 6 carbon credit prices, but supply crunch looms
Prices of carbon credits under the Paris Agreement’s Article 6 are seen below $20 per tonne in the early years as supply outpaces demand, before a tightening market pushes rates above $100 by mid-century, according to an analysis.
Read MoreANALYSIS: Middle East war likely to result in lower demand for CORSIA credits in the short term, analysts say
The war in the Middle East is likely to lower demand for credits under the international aviation sector’s CORSIA scheme in the short term, analysts told Carbon Pulse, with one estimating the past two weeks alone have seen around 3 million tonnes of fewer emissions due to lost jet fuel.
Read MoreClimate Litigation Roundup: Climate liability reaches SCOTUS as judicial scrutiny of corporate climate claims intensifies
The past month in climate litigation saw the US’ highest court take up a major lawsuit led by local governments against the oil industry, a landmark corporate climate case move into trial phase in Europe, and courts across multiple jurisdictions weigh greenwashing claims and statutory climate duties.
Read MoreANALYSIS: Article 6 authorities face tough balancing act between integrity and speed as PACM implementation gathers pace
Experts charged with implementing the Paris Agreement Crediting Mechanism (PACM) have a tricky year ahead as they aim to fast-track implementation of the new Article 6 market, while ensuring standards are kept high, observers have said.
Read MoreUPDATE – ANALYSIS: International credits generally offer cheapest route to achieving EU’s 2040 climate goal
Using international credits to cover the final 5% of the European Union’s 2040 emissions reduction goal would be cheaper than relying on domestic action, based on Carbon Pulse cost assumptions fed into a new online calculator developed by a non-profit.
Read MoreANALYSIS: Voluntary market cautiously welcomes EU carbon removal work, demand remains major concern
Voluntary carbon market participants have heralded the EU as the first mover in creating a comprehensive, government-backed standard for certifying durable removals, but many still question where demand-side scale will come from and caution that ensuring a robust, high-integrity system still rests on fine-tuning the crediting framework.
Read MoreVCM MONTHLY DATA: Carbon credit retirements down 9 mln YoY, lowest monthly issuance for five years
January retirements across the voluntary carbon market (VCM) fell by nine million year-on-year, while issuances also slipped to levels last seen five years ago – with one registry failing to record any new supply for the past three months.
Read More