ANALYSIS: Forest carbon credits may find a home in Article 6
Forestry carbon credits, including from REDD and ARR reforestation sectors, now have the green light to scale via Paris Agreement carbon markets, following last month’s historic decision at COP29, but the exact methodologies that will be used, and strength of demand, remain uncertain.
Read MoreANALYSIS: Article 6 breakthrough raises integrity concerns for some, but ‘proof in pudding’, experts say
The historic consensus on Article 6, achieved in November at COP29, may have been broadly welcomed, but some remain cautious that gaps in final decision texts could lead to a lack of integrity in the newly developed, UN-approved international carbon markets, if implementation over the coming years is not sufficiently robust.
Read MoreANALYSIS: International carbon markets now “open for business” but patience needed before scale hits
UN-approved international carbon markets are now ready to fully operationalise, following the landmark decision to finalise Article 6 in Baku, but questions over demand, and a robust methodological work programme scheduled for 2025, means it may take years until the planned implementation produces credit transactions at scale.
Read MoreANALYSIS: Integrity Council decision on REDD+ carbon credits welcome but not without risk
The decision Friday from the Integrity Council for the Voluntary Carbon Market (ICVCM) to approve three REDD+ methodologies has been welcomed by multiple market participants, but with a note of caution that the move is not without risk, especially as the crediting programmes have not yet been tried and tested.
Read MoreANALYSIS: Nature Repair Market needs govt investment, greater transparency, submissions say
Australia’s Nature Repair Market (NRM) rules need greater transparency and additionality assurances to increase investor confidence, while the government must lead investment in order help support its fundamentals, stakeholders have urged.
Read MoreANALYSIS: Absence of policy, meagre funds keep India from realising CDR potential
An absence of knowledge and policy on durable carbon removals (CDR) at the government level, along with a lack of investor interest in funding such projects, is keeping India from realising its vast CDR potential, according to experts.
Read MoreANALYSIS: Australia’s environmental credibility contrasts good intentions, summit delegates say
Attendees of Australia’s first Global Nature Positive Summit lauded the government for hosting the event, but the current political troubles it faces and lingering questions over how to incentivise private sector investment are not going away.
Read MoreANALYSIS: Voluntary carbon market must stop ‘infighting’ and own the narrative to usher in new era
Changing the narrative, such as dropping ‘offsetting’ language, will be crucial to navigating a successful transition away from years of scandal for the voluntary carbon market, but this will be contingent on the sector coming together and controlling the narrative, experts told a conference this week.
Read MoreANALYSIS: Voluntary carbon market overlooking CORSIA insurance bottleneck
Large volumes of eligible voluntary carbon credits for the UN’s CORSIA international aviation offsetting scheme will take years to materialise due to supply requirements that force project developers to guarantee against double claiming risk, even if ICAO approves major standards for the current phase at a meeting in November.
Read MoreANALYSIS: Voluntary, regulated carbon markets need each other, but solving the supply bottleneck will take years
Voluntary and regulated carbon markets need one another, international stakeholders told a World Bank-convened event this week, but creating the right investment conditions to scale supply and blur the lines between the two forms of pricing mechanisms will take years.
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