EU CO2 allowance prices edged up to more than €67 per tonne on positive news from the manufacturing sector that raised hopes of a recovery in demand. The latest S&P Global PMI data indicated that the decline in factory production recorded in January was the smallest since last April. In addition, new orders for goods recorded the smallest decrease in nine months. Looking ahead, business optimism for the next 12 months hit a nine-month high. At the national level, the decline in production in Germany has moderated, while France continues to face a significant decline. Outside these two countries, however, the decline in production eased to its lowest level in ten months. On the other hand, natural gas prices in Europe remained low due to persistent low demand. The region has managed to maintain healthy gas reserves; however, there are some risks related to the possible delay of shipments from Qatar.

January 2024 saw more retirements compared to the same month last year and is expected to surpass 2022 retirements, according to a report by Viridios AI, a voluntary carbon credit market pricing and data provider.

Viridios is a climate technology platform that provides carbon credit prices , assessments and project data to increase voluntary carbon market transparency. 

Overall, trading was at voluntary carbon market (VCM) relatively weak in the past week. 

Renewable Energy Credits (RECs) , especially from India, saw price increases, leading to a shift in demand from Chinese to Indian credits. Activity in the native species removal market is slow, but projects in this category are starting to pay off.

However, the REDD+ segment faces minimal activity, either on the market or over the counter, indicating muted interest in this nature-based category. (Jennifer L)

Looking for high-quality carbon offsets to address your harmful emissions? This guide will help you understand what compensation is all about, its benefits and what would be the best place to get compensation.  High-quality carbon offsets not only help individuals and businesses reduce their carbon footprint, but can also have a positive impact on local communities and biodiversity. By supporting projects that focus on renewable energy, afforestation and sustainable agriculture, carbon offsets can contribute to the development of clean technologies and create employment opportunities.  Furthermore, investing in high-quality offsets provides a transparent and credible way to offset emissions, ensuring that the funds generated are effectively used for environmental protection and social benefits. (Jennifer L, carboncredits.com)

"Farmers and land managers need to be more strongly incentivized to reduce emissions," Jette Bredahl Jacobsen, vice-chair of the ESABCC, said in a press release, adding that "this could be done by pricing emissions and rewarding removal." Message , published on Thursday (January 18) by the ESABCC - the climate advisory group set up by the European 2021 Climate Act - examined the main gaps in the EU's green policies and found that farmers lack adequate financial incentives to reduce emissions in the sector. The sector "remained largely unchanged from 2005", with two-thirds of these coming from livestock production. To reverse this trend, a carbon pricing system should be introduced "by 2031 at the latest", experts recommend. The report comes as the EU aims to reduce greenhouse gas emissions by 55 % by 2030 compared to 1990 levels and achieve climate neutrality by 2050. The ESABCC published its recommendations while the EU executive prepares a new document that sets an interim target for reducing emissions by 2040, Climate and Energy Commission spokesman Tim McPhie said at a press briefing after the report's release. (Maria Simon Arboleas, EURACTIV)

The climate crisis is one of the most pressing problems facing humanity today. Its adverse effects are being felt globally, with rising temperatures, rising sea levels, changing precipitation patterns and more frequent extreme weather events.  However, the effects of the climate crisis disproportionately affect marginalized communities who have contributed the least to the problem. Carbon markets are rapidly emerging as a key mechanism through which climate action is facilitated globally. These markets set a price on carbon to incentivize emissions reductions and direct investment in sustainable solutions. However, marginalized communities often lack access and agency in these spaces. Strengthening their position in carbon markets can thus revolutionize the fight against climate change by driving inclusiveness, social justice and greater emissions reductions. (Hindustan Times)

• Criticism of voluntary carbon trading and forest conservation strategies such as REDD+ has focused mainly on the carbon accounting methods used to calculate credits.
• Each credit traded on voluntary markets is supposed to represent the reduction, avoidance or removal of 1 metric ton of carbon dioxide from the atmosphere.
• However, recent science has raised questions about how REDD+ and other types of projects measure the number of tonnes of emissions saved.
• The process relies on establishing a baseline deforestation rate against which the project's success in reducing or eliminating emissions is measured. But critics say the process can be flawed and that conflicts of interest among parties involved in setting the baseline have not been addressed until recently. (John Cannon)

Sample projects, as well as technical support for applicants, can be found on the ForestPortal website: https://www.forestportal.sk/prv_sr/projektove-podpory/.

Sample projects (ŽoNFP and selected mandatory annexes with the exception of project documentation) for:

• call number 58/PRV/2022 – submeasure: 8.5 – Support for investments in improving the resilience and environmental value of forest ecosystems;

activity: Artificial restoration and education of protected forests and special forests destination, especially by underplanting forest stands (sample project for download here)

• call number 59/PRV/2022 – submeasure: 8.5 – Support for investments in improving the resilience and environmental value of forest ecosystems;

activity: Building and restoring civil and cognitive infrastructure in forest ecosystems (sample project for download here)

• call number 62/PRV/2022 – submeasure: 8.3 – Support for the prevention of forest damage caused by forest fires and natural disasters and catastrophic events;

activity: Improvement of water management in forests – (sample project for download here)

• call number 63/PRV/2022 – submeasure: 4.3 – Support for investments in infrastructure related to the development, modernization or adaptation of agriculture and forestry;

The government has published for public consultation a draft law on the establishment of a voluntary carbon market (hereinafter referred to as the "VCM"). The importance of this proposal is justified by the objectives of avoiding "greenwashing" in the acquisition of carbon credits and increasing the confidence of investors and buyers of this type of product. The consultation is open until 10 April to receive input from citizens, businesses and other stakeholders. The creation of the VCM in Portugal was announced at the end of 2020, when the Minister for the Environment and Climate issued Regulation 12401/2020 of 21 December, which aims to develop a draft regulatory framework for voluntary carbon markets. In parallel, a similar proposal is undergoing the legislative process at EU level. In particular, the European Commission has submitted a proposal for a regulation to ensure the quality of carbon offset projects and schemes in the European Union (COM(2022) 672 final / 2022/0394(COD). Carbon markets aim to value various types of projects that convert their capacity to sequester greenhouse gases (“GHG”) into tradable securities (“carbon credits”). These markets generally allow companies and other organizations to offset their greenhouse gas emissions and thereby leverage their internal ESG objectives by meaningfully contributing to the overall goal of climate neutrality. 

EU industrial companies affected by the major changes in carbon costs resulting from the new EU ETS rules and the Carbon Border Adjustment Mechanism (CBAM) need to develop strategies to address them if they have not already done so. Otherwise, they will fall behind those who have. Pablo Ruiz from Rabobank summarises their analysis and conclusions. Ruiz presents a roadmap for each of the different starting positions. The study looks at critical variables for industrial decarbonisation: carbon and energy intensity, investment options and the expected effects of CBAM on sectoral business models. It illustrates how different strategies for purchasing carbon allowances and/or investing in decarbonisation may or may not deliver significant savings compared to a business as usual scenario. The timing of decisions and pathways are crucial, and the analyses cover the period from now until 2030. Companies need to assess where they stand in relation to their competitors and potentially new competitive sectors. And at the EU level, successfully managing industrial decarbonization could unlock profound growth opportunities for the European Union as it seeks its place in an ever-changing world, says Ruiz. (Pablo Ruiz)

This Voluntary Carbon Offsets Market report includes a competitive landscape analysis that provides insights into prominent players with significant market shares. With detailed data reflecting the performance of each player profiled, readers can gain a holistic view of the competitive landscape and better understand their competitors. In today's fast-paced digital era, the targeted service industry has made Analytics revolutionizing the market with its innovative strategies. By utilizing market segmentation techniques, the industry has successfully penetrated into various segments based on type, application, end-user, region, and more.

By type

• Forestry
• Renewable energy
• Methane landfill projects
• Others

By application

• Personal
• Enterprises

The research delves into the country section and covers selected market variables that play a key role in driving both current and future developments in the market. This study covers various regions across the globe, including influential players from United States, Europe, China, Japan, India, Southeast Asia, Latin America, the Middle East and Africa. (PRWireCenter)

A working paper published by the European Central Bank examines how policymakers should encourage firms to reduce their carbon emissions. In Dynamic Carbon Management, Maria Cecilia Bustamante and Francesca Zucchi present a model that examines how firms will respond to the policy. The model examines how firms should manage production, green investment and carbon credit trading. The authors argue that empirical research provides evidence that the effects of climate regulation are heterogeneous across firms. Their model found that a carbon price leads firms to reduce emissions, both by reducing the scale of their production and by making green investments. However, as firms find carbon pricing regimes more costly, they are shifting their spending to "more immediate but shorter-term options" such as emissions reductions rather than green investment. This is because "the reduction immediately reduces the firm's expected cost of pricing carbon, while green innovation has an uncertain and delayed outcome," the authors say. (Central Banking Newsdesk).

Cancelling carbon credits can be an effective tool for individuals and businesses to offset their carbon emissions and contribute to a greener future. By cancelling these credits, we can ensure that the emission reductions achieved are permanent and do not count twice, creating a more transparent and efficient carbon market.  This approach not only helps combat climate change, but also supports the development of sustainable practices and technologies.  If you want to know how the process works, this article will explain everything you need to know about going carbon-neutral. Let's start by explaining how these credits work.

Understanding how carbon credits work

Carbon credits are tradable certificates that give entities the right to emit a tonne of CO2 or its equivalent. They are generated by projects that reduce or remove CO ₂ from the atmosphere, such as planting trees.  Credits serve as a permit that allows the holder to offset their emissions. In this way, they function as renewable energy certificates (RECs) , which are also a market instrument that confirms that the holder owns a megawatt-hour of electricity from a clean energy source. ((Jennifer L, carboncredits.com)

The carbon credit market is more than ready to leave 2023 behind. That's because market experts are predicting that 2024 could be the year of the comeback. And that could open up opportunities in specific ETFs that focus on the carbon credit market. Governments are trying to curb greenwashing practices by companies that want to label themselves as ESG-friendly. This may have spilled over into the carbon credit market. This is because countries are trying to establish global standards for carbon trading, as outlined in Eco-Business article Data on how the carbon credit market performed in 2023 has not been compiled, adding a layer of uncertainty to the market as the new year begins. “We’ll have to wait for those reports to really know [the extent of pent-up demand], but in terms of our projects and what we’re hearing in the market, it’s definitely had an impact [on carbon prices],” said Colin Moore, regional carbon advisor for Southeast Asia at the Wildlife Conservation Society. However, there are signs that confidence in the carbon credit market is returning, particularly from investors.

The Commodity Futures Trading Commission (CFTC) has introduced proposed guidance regarding the trading of derivative contracts for voluntary carbon credits (VCCs). It establishes factors for designated contract markets (DCMs) to address specific provisions of the Commodity Exchange Act (CEA) and CFTC regulations.  Proposal CFTC  seeks input on a variety of VCC-related issues through 17 specific questions as part of the Biden administration’s focus on climate issues. Comments on the proposal are open until February 16, 2024.

What are the proposed CFTC guidelines all about?

CFTC Chairman Rostin Behnam emphasized the importance of the proposal:

“Today’s CFTC action is the culmination of a two-year investigation into carbon markets and many more years of in-depth work on the impacts of climate on financial markets.” 

He further stated that the agency’s goal is to help improve integrity leading to transparency, liquidity, and price discovery. All of these are hallmarks of the CFTC in regulating markets and setting standards. ( (Jennifer L, carboncredits.com)

The Commodity Futures Trading Commission (CFTC) has introduced proposed guidance regarding the trading of derivative contracts for voluntary carbon credits (VCCs). It establishes factors for designated contract markets (DCMs) to address specific provisions of the Commodity Exchange Act (CEA) and CFTC regulations. The CFTC’s proposal seeks input on a variety of VCC-related issues through 17 specific questions as part of the Biden administration’s focus on climate issues. Comments on the proposal are open until February 16, 2024.

What are the proposed CFTC guidelines all about?

CFTC Chairman Rostin Behnam emphasized the importance of the proposal: “Today’s CFTC action is the culmination of a two-year investigation into carbon markets and many more years of in-depth work on the impacts of climate on financial markets.”  He further stated that the agency’s goal is to help improve integrity leading to transparency, liquidity, and price discovery. All of these are hallmarks of the CFTC in regulating markets and setting standards. (Jennifer L)

In the absence of government regulations requiring dramatic reductions in greenhouse gas (GHG) emissions that cause climate change, an increasing number of companies are adopting "net zero" goals. More than one third of the world's 2,000 largest publicly held companies has declared net zero goals, according to the Net Zero Tracker, a database compiled by academics and non-profit organizations. These targets typically include public commitments to reduce greenhouse gas emissions through measures such as process modification, product composition change, fuel switching, renewable energy transition, investment in carbon removal projects – and a pledge to reduce remaining emissions to zero by purchasing carbon offsets, known as as carbon credits. Carbon credits are financial instruments where the buyer pays another company to take certain steps to reduce greenhouse gas emissions, and the buyer receives a credit for the reduction. (Varsha Ramesh Walsh, Michael W.) Toffel

Carbon finance can incentivize climate action and be particularly useful for emerging markets that lack the resources to implement restoration or conservation projects, says GenZero's chief executive.

(Indira Vergisova)

.

The Guardian published an article earlier this year criticizing REDD+ projects, citing a study that claimed the initiatives generated significantly fewer carbon credits than reported. However, a group of leading international scientists have questioned the conclusions of the REDD+ study and publicly condemned its findings. Scientists including Ed Mitchard, the company's chief scientist for satellite data Space Intelligence, in collaboration with researchers from institutes such as Edinburgh and the University of California and MIT, have raised concerns about the methodology and data used in the study, suggesting that the conclusions may be inaccurate or misleading. NASA While their latest paper has yet to be peer-reviewed, they say they have discovered several errors in the original study and are calling for it to be revised or even retracted. (by Sasha Ranevskaya)

As the world continues to grapple with climate change, forest carbon offsets have emerged as a promising solution. By preserving and protecting forests, we can capture and sequester carbon from the atmosphere, thereby reducing greenhouse gas emissions. Not only does this benefit the environment, but it also creates economic opportunities for communities that rely on the forest for their livelihoods.

Introduction to forest carbon offsets

For years, companies have been given the option to deal with their environmental impact: canceling their carbon pollution by paying for efforts that protect forests. That's basically the idea of offsetting forest carbon.  If you're a landowner who wants to make money keeping your trees standing, forest highlights are the way to go. Or maybe you are a company owner willing to support forest conservation initiatives, forest carbon offsets are perfect for you.   In any case, we will help you understand everything you need to know about this species carbon offset credit. From providing a detailed explanation to identifying its benefits and how to shop for your compensation needs. (Jennifer L)