ANALYSIS: 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.
Read MoreANALYSIS: Legal issues around Japan’s proposed mandatory carbon market await more clarification
As Japan has begun preparation work for the design of a compliance carbon market, the government should clarify some key legal issues to remove doubts when embedding the concept of emissions trading in the domestic legal framework, according to experts.
Read MoreANALYSIS: Global South carbon markets need an explosion of Southern demand
Heightened demand from carbon credit buyers located in the Global South will be key to retaining climate finance in-country and pursuing sustainable development in emerging economies via the voluntary market (VCM), instead of relying on foreign investors from the North, according to speakers at the Mexico Carbon Forum in Guanajuato this week.
Read MoreANALYSIS: Voluntary carbon market welcomes ICVCM renewables decision, cites limited price impact
Voluntary carbon market stakeholders mostly welcomed the decision made by the Integrity Council for the Voluntary Carbon Market (ICVCM) to reject renewables methodologies from the sought-after Core Carbon Principles (CCPs) quality label, adding that they expected a limited market impact.
Read MoreANALYSIS: Long way to go before SBTi decides on voluntary carbon credit use under net zero standard
Following the publication of technical documents by the Science Based Targets initiative (SBTi), which included both scenarios for including carbon credits under its revised net-zero corporate standard as well as a paper describing their use as risky and ineffective, voluntary market stakeholders have reacted with confusion at the developments and expressed frustration at the long wait until a final decision.
Read MoreANALYSIS: Momentum for direct air capture growing in new countries, but US still the standout
Momentum is building in specific markets for direct air capture investment, according to attendees at a carbon dioxide removal (CDR) event held in Zurich this week.
Read MoreANALYSIS: New buyers poised to enter novel carbon removals market despite cost challenges
Buyers from new sectors are preparing to ramp up investment in novel carbon removals that would alter the current profile of corporates purchasing engineered-based units, long dominated by large technology firms, despite credit costs still well into the hundreds of dollars per tonne.
Read MoreANALYSIS: Voluntary carbon investors shift credit buying behaviour, but demand rebound still a way away
Voluntary carbon market (VCM) participants expect a substantial demand return, but this could still be years away, with stakeholders at an industry event this week highlighting that investors in the market are now looking more closely at project origination and becoming increasingly selective about the activities they finance.
Read MoreANALYSIS: Japan’s inclusion of CDR credits not expected to stir enthusiasm in domestic carbon market
Japan has opened the door to the use of international credits from carbon dioxide removal (CDR) projects in its domestic carbon market, though market response might be tepid due to the entry threshold and the limited scope of eligible projects.
Read MoreANALYSIS: Voluntary carbon actors eye narrative change but demand still lacking
Voluntary carbon attendees at an industry event held in Florence this week struck an optimistic note in light of imminent market developments that are expected to boost demand, but multiple sources highlighted a lack of tangible impact so far, with buyers still said to be holding back on offset investment due to reputational risk.
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