ANALYSIS: “Let them get on with it” – Market responds to COP30 Article 6 decisions as PACM prepares for full implementation
2026 will be a crunch year for implementing UN carbon markets, after Article 6 decisions at COP30 cleared up key administrative uncertainties such as funding shortages and the closure of the Clean Development Mechanism (CDM), and affirmed previous agreements on crediting standards and trading rules, according to experts.
Read MoreANALYSIS: EU tightens oversight rules for CDR certification bodies in final draft
The European Commission on Friday adopted stricter conflict-of-interest and oversight rules for third parties accredited to verify carbon removals (CDR) certified in the European Union, but otherwise largely stuck to an earlier draft released in June, experts said.
Read MoreCOP30: ANALYSIS – Big pledges, little progress – how the ‘Forest COP’ sidelined nature
The COP30 UN climate summit wrapped up last week with a record $9.5 billion pledged for forests – yet nature at large took a back seat in the negotiation rooms, according to observers.
Read MoreANALYSIS: New SBTi draft Corporate Net-Zero Standard lacks impetus to drive removals, but strong recognition for carbon credit use
The latest draft of the Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard (Version 2) takes a step forward on climate finance transparency, and makes an effort to clearly recognise companies that buy quality carbon credits, but will fail to help drive near-term investment towards removals, according to market stakeholders.
Read MoreANALYSIS: PACM players gain new accommodations as pragmatism wins out on controversial carbon permanence standard
The Article 6.4 Supervisory Body (SBM) last week adopted Paris Agreement Crediting Mechanism (PACM) decisions governing reversals, additionality, and the Clean Development Mechanism (CDM) market transition, codifying new flexibilities and deferring hard calls to future work.
Read MoreANALYSIS: Australian environmental reforms yet to align with its emissions reduction goals, experts say
Australian environment and clean energy groups have raised concerns that the government’s environmental law reforms are not reflecting the need to massively scale up carbon removal and renewable energy, as outlined in its sectoral decarbonisation plans.
Read MoreANALYSIS: Colombian CO2 tax offsetting exceeds 50% cap amid glut of low-priced credits
Colombian CO2-taxable entities have retired carbon credits equivalent to more than 50% of their levy burden in H1 2025, above the legal threshold, as eligible credits amass at low prices and fears build that politicians may push the cap down further.
Read MoreANALYSIS: Developers fear glut as demand lags for India’s farm credits
Indian farms could remove billions of tonnes of CO2 from the atmosphere in the coming decades, but scaling carbon credit projects across its patchwork of smallholdings must first contend with low farmer incentives and policy exclusions to doubts over sustained demand.
Read MoreANALYSIS: Australia’s savanna fire management method could significantly impact ACCU supply, with major market implications
Australia’s proposed new savanna fire management (SFM) method could see carbon credit supply from existing projects increase by 72 million between 2026-35, however stricter method and contract negotiation requirements may slow its uptake, according to experts.
Read MoreANALYSIS: Nature-based carbon sector fights back as UN panel meets to discuss crunch permanence standard
Nature-based removal stakeholders continue to fight for their place in Paris Agreement carbon markets, with analysis of over 100 market responses to a controversial draft Article 6 permanence standard showing a clear lack of consensus and dissatisfaction with the latest text, as an expert methodological panel meets this week to discuss how to move things forward.
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