The Global Carbon Council (GCC) and Global Environmental Markets Ltd. (GEM) have joined forces to acquire the Global Carbon Registry® (GCR). The registry will be used by the GCC to manage carbon credits, simplifying the issuance, transfer and retirement of these credits. It is also set up to process Article 6.2 credits for countries that are interested in doing so. GCC is an international carbon credits and sustainable development program.  The GCR is an advanced system that helps track Article 6.2 credits, which are important for global climate efforts. It is part of voluntary carbon market (VCM) and offers several features that make transactions smoother and easier. ((Jennifer L, carboncredits.com)

Enhancing carbon dioxide removal (CDR) is key, along with rapid emissions reductions, to meet the climate goals of the Paris Agreement. Analyzing various key aspects of the industry, the detailed report covers the current state of CDR. 

The authors found that there is a wide gap between what countries plan to do and what is needed to meet global climate goals. 

A reportmessage developed by CDR experts who author the Intergovernmental Panel on Climate Change (IPCC) reports and lead CDR's main research projects.

Bridging the carbon removal gap

To keep warming below 2°C, the world must remove huge amounts of CO2 from the air. CDR involves ways to capture CO2 and keep it stored in places like soil, oceans or products. Examples include planting more trees, using certain carbon capture and storage technologies. (Jennifer L, carboncredits.com)

The future of fossil fuels is at the center of the United Nations climate summit in Dubai, where many activists, experts and nations are calling for an agreement to phase out the oil, gas and coal responsible for warming the planet. On the other: energy companies and oil-rich countries with plans to continue drilling well into the future. In the background of these discussions is carbon capture and sequestration, technologies that most, if not all, manufacturers are counting on to meet their net-zero emissions commitments. Skeptics worry that the technology is being oversold to allow the industry to maintain the status quo."Industry must commit to truly helping the world meet its energy needs and climate goals – which means shedding the illusion that improbably large amounts of carbon capture is the solution," International Energy Agency Executive Director Fatih Birol said ahead of the event. conversations. (voanews.com)

The recently released “State of the Voluntary Carbon Markets 2023” report from Ecosystem Marketplace (EM) reveals a significant trend shift within VCM. It identifies a concentration of demand for highly integrated and high-quality voluntary carbon credits, despite their higher price, that offer co-benefits beyond greenhouse gas emission reductions. Analysis of transaction data suggests a significant 82 % increase in average carbon credit prices from 2021 to 2022, accompanied by a decline in overall transaction volume. These findings suggest market consolidation among smaller, but specialized buyers who are willing to pay more for higher-quality credits. In particular, there is high demand for nature-based credits that hold commons certifications and are aligned with the Sustainable Development Goals (SDGs). Here are some key takeaways from EM’s research. ((Jennifer L, carboncredits.com)

Experts say this form of carbon offsetting could strengthen the fight against climate change, but it must be used responsibly. You may have heard people say that trees are the lungs of the earth – and they're not wrong. Forests play a key role in our fight against the climate crisis because they are able to absorb carbon dioxide from the air and release oxygen through photosynthesis. But while our green spaces are scarce, have we been overlooking another resource? Enter: blue carbon.

The Carbon Neutrality Protocol accepts the use of carbon credits from any type of mitigation project approved according to accepted carbon standards listed in technical specification 4.1.1 (with specific limitations listed there). There are three general types of mitigation projects:

Avoid : includes projects that eliminate emissions – examples include renewable energy projects that prevent emissions from the fossil fuels they replace; and REDD+ projects that address emissions from deforestation.

Reduce : Includes projects that reduce emissions – examples include energy efficiency projects, such as low-carbon stoves that use less fuel due to better combustion; and manufacturing process improvements that reduce the use of non-renewable energy.

Delete : Includes projects that remove greenhouse gases from the atmosphere – examples include afforestation; agricultural practices that capture carbon in the soil, bioenergy with carbon capture and storage, improved weathering, and direct air capture combined with long-term storage.

No matter where your organization is on its journey to net zero, understanding your carbon footprint is a key step towards mitigating your own environmental impacts. Once you understand your carbon footprint and have taken steps to reduce your scope 1, 2 and 3 emissions, you can consider reducing your unavoidable emissions by investing in high-quality carbon credits. Carbon credits are equal to one ton of CO2 emissions (that's roughly the equivalent of 2,482 miles driven by an average gasoline-powered passenger car) avoided or captured by a carbon project. Carbon projects undergo a rigorous verification process under the International Carbon Standard and, in the case of Aspiration, our own rigorous screening process. However, there are many types of carbon projects that produce these credits. In general, there are two main types of carbon offset projects; nature-based projects and non-nature-based projects. In this guide, we will explore 9 different examples of carbon offsets and take a deep dive into different types of carbon offset projects that support decarbonization but also have other environmental or social co-benefits that align with the UN Sustainable Development Goals. (Aspiration)

Carbon Credits Organization Releases New Methodology to Protect Forests and Ensure REDD Projects Deliver Highly Integrated Carbon Offsets. The non-profit organization Verra today unveiled a new methodology for protecting forests through the United Nations-backed Reducing Emissions from Deforestation and Forest Degradation (REDD) scheme. Carbon Credits Organization says its new approach aligns the baseline setting for calculating emission reductions from forest protection activities under the Verified Carbon Standard (VCS) with the accounting requirements for national climate action plans or nationally determined contributions (NDCs) submitted by governments under the Paris Agreement. The release of the methodology follows a series of reports accusing some providers of carbon offsets issued through REDD-approved projects of failing to deliver on their promised emissions savings. Much of the controversy surrounding underperforming forest protection projects centers on the baseline calculations against which emissions savings are then measured. The methodology has been in development since 2020, and Verra will lead and manage the baseline setting process using jurisdiction-level data that meets the requirements and the new development process. The program will also use remote sensing technologies combined with detailed risk assessments to determine the expected deforestation for the project area, ensuring that the level of verified emission reductions achieved by all projects in the region is consistent with the jurisdiction-level accounting. (Stuart Stone)

The World Bank intends to introduce a certification mechanism for carbon credits generated by forestry projects in the coming months, which will aim to increase the credibility of carbon markets. As it was, the reputation of carbon credits suffered a series of severe blows last year as investigations questioned their quality and ability to provide a meaningful impact on the climate.  Yet there is a glaring, widely acknowledged need to channel funds to poorer regions, which Banga believes can only be achieved by increasing the transparency and credibility of voluntary carbon markets (VCMs). According to its new president, the World Bank plans to create credible, better-priced loans that will allow resources to “move in the right direction.” The announced move will not only help bring more structure to the VCM, but is part of Banga’s strategy to reform the nearly 80-year-old financial institution, to which he was elected by the bank’s board of governors earlier this year. (Violet George)

At COP 21 in Paris in 2015, the parties to the United Nations Framework Convention on Climate Change (UNFCCC) adopted the Paris Agreement to reduce greenhouse gas emissions. The main goal of the agreement is to limit the increase in global temperature to 1.5 degrees Celsius compared to pre-industrial levels. Scientists believe that this level is the threshold for averting the catastrophic consequences of climate change on the environment and human life. Since 2015, the global decarbonization movement has gained significant momentum, and carbon quotas are an essential tool for achieving these goals.

US Secretary of State John Kerry, with his granddaughter on his lap, signs the COP21 climate change agreement on behalf of the United States  

KraneShares and Climate Finance Partners (CLIFI) launched the first flagship ETF in July 2020 on the New York Stock Exchange, KraneShares Global Carbon ETF (KRBN) . Since then, KRBN has become the largest and most liquid carbon ETF in the world. 

But what are we actually investing in?

Emissions compliance is an emerging asset class whose high performance has recently attracted considerable attention. Carbon compliance is based on cap-and-trade programs, also known as emissions trading systems (ETS), which regulate emissions for mandated industries in their respective jurisdictions and form a new type of investable asset class called carbon allowances or carbon credits. 

The Dubai Financial Market (DFM) has announced the launch of a pilot carbon credit trading program scheduled to debut at COP28. The move puts the financial market at the forefront of climate action as a regulated platform where project capital raising, carbon credit trading and escrow are explored in support of the UAE government's 2050 target. The pilot project will be an integrated platform to explore the trading and use of carbon credits and provide a mechanism to help companies manage essential and residual carbon emissions while pursuing direct decarbonisation strategies. Each carbon credit symbolizes a tangible reduction in carbon emissions, with one credit offsetting one tonne of CO2 equivalent emissions.

Newly appointed World Bank President Ajay Banga has unveiled plans to launch a mechanism for certifying forest carbon credits in the coming months. His mission is to revolutionize the bank's operations while increasing the credibility and transparency of voluntary carbon markets. Banga stressed the urgent need to redirect resources from rich countries to less prosperous regions to address climate-related issues.  Speaking to a large audience at the Singapore FinTech Festival, Banga stressed that achieving this goal cannot rely solely on taxation or calls for financial contributions from richer countries due to political barriers. Instead, Banga suggested that strengthening trust is key.  voluntary carbon markets . (Jennifer L, carboncredits.com)

Offsets are more complex than just paying for new trees to be planted after summer. For many eco-minded travelers, it's easy to check the "offset my flight" button when buying a ticket. Almost every airline offers such a program along with a calculator that shows how a passenger can compensate for their flight. In the midst of heat waves and massive flooding, why not spend a few extra dollars to help reduce greenhouse gas emissions? 

However, many of these carbon offset programs are not what they seem. According to one recent study published in Science , offset projects have not reduced deforestation, and projects that have seen some reductions are not as effective as claimed. Julia Jones, professor of conservation science at Bangor University, says the results are not good news because saving carbon-sequestering forests is critical to keeping warming below 2°C, or 3.6°F.

"It's really disturbing to find that these projects have been less effective than claimed," she said. "However, this does not mean that they were not an effective tool, that these projects did not achieve anything. It means that more carbon credits were sold than delivered.

Carbon offsets are a bit more complicated than just spending a few extra dollars per flight and then assuming that your money is helping to protect trees in the Amazon. Determining the amount of carbon you have personally emitted and determining the equivalent amount of offsets needed to potentially offset those emissions is complex.  billing process , which usually may not be accurate. And there's a chance that the compensation you bought to protect the trees in the forest went somewhere where  these trees would still be preserved , so your offset doesn't really add much to the carbon you put into the atmosphere. (Emily Driehaus)

CORSIA recently reviewed and approved six carbon credit standards for its first phase. These include Winrock International's US Carbon Registry and Architecture for REDD+ Transactions, which were approved without exceptions. The Climate Action Reserve (CAR), Global Carbon Council (GCC), Gold Standard and Verra's VCS program were conditionally approved, while the CDM did not qualify for Phase I. CORSIA allows credits from 2021 with an appropriate adjustment to avoid double counting. This adjustment ensures that the credits used for CORSIA do not overlap with the country's emission reduction targets under the Paris Agreement. The mechanism ensures that the allocation of credits represents real carbon reduction activity and sales, thereby strengthening the integrity of the carbon market. CORSIA's Technical Advisory Body (TAB) recommendations from the review are impacting the market by increasing demand for approved loans. This doesn't just apply to airlines, it signals to other buyers to consider "best in class" credits. This will affect both currently available and future credits, increasing demand in both cases. However, some high-quality credits approved by ICROA are not accepted under CORSIA, which affects their eligibility. (Carboncredits.com, Jennifer L)

Article 6 of the Paris Agreement is seen as a key enabler of international emissions trading, providing a key pathway for countries and businesses to meet and accelerate their climate goals. However, many key decisions and rules regarding the use of Article 6.2 and Article 6.4 need to be clarified at the COP28 climate summit in Dubai to move carbon markets forward. Experts explore some of the complexities of Article 6 and its implications for the compliance market as well as voluntary carbon markets.

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In a small geodesic dome in the above-ground environment of Iceland’s massive Hellisheidi geothermal power plant, Ólafur Teitur Guðnason is demonstrating a new approach to storing CO2 emissions that is attracting global attention. In the dome, owned by Icelandic startup Carbfix, CO2 piped in from a nearby power plant is mixed with water pumped from the ground and injected into the basalt rock below. In the nine years since the company began injecting CO2 from the power plant, 95 % has turned into a rock in the subsurface in less than two years, says Guðnason, Carbfix's communications director. The water acts as a carrier and kills the buoyancy of the CO2 and radically accelerates the naturally occurring process of CO2 mineralization when it comes into contact with the basalt. "Our technology accelerates processes that normally occur on geological timescales. Instead of taking thousands of years (to mineralize CO2 into rock), we can do it in two years."Terry Slavin)

Farmers, ranchers and landowners can produce and sell carbon offsets by capturing and storing emissions. They do this using carbon farming and carbon sequestration processes, which involve implementing procedures that remove CO2 from the atmosphere by converting the gas into organic matter in the soil and eventually into plants. Once CO2 is absorbed, it helps restore the soil's natural properties – simultaneously increasing crop production and reducing pollution.

Farmers, ranchers and landowners can offset carbon emissions in countless ways. While not an exhaustive list, here are a few practices that typically qualify as projects producing offsets.

• Returning biomass to the soil as mulch after harvest instead of removal or burning. This practice reduces evaporation from the soil surface, which helps conserve water. Biomass also helps feed soil microbes and earthworms, allowing nutrients to cycle and strengthen soil structure.
• Use of conservation or no-till practices that improve water and air quality by increasing nutrients, soil structure, porosity, and slope.
• Using nutrient management and precision agriculture to maintain plant and soil health instead of chemicals or pesticides.
• Planting cover crops during the off-season to prepare land for cash crops by improving soil quality.
• Replacing surface irrigation systems with flood irrigation systems so that runoff water can be recycled to improve efficiency.
• Encouraging forest regrowth to remove, store and reuse carbon in trees and plants.
• Returning degraded lands to their natural state, converting acreage to grassland, or planting trees or seeds to convert vacant land into forests or woodlands.
• Crop rotation to ensure sufficient nutrients in the soil.
• Switching to alternative types of fuels such as lower carbon biofuels such as corn and ethanol and biodiesel derived from biomass.
• Change in manure management and change in feeding schedule.

After reading this list, you may be wondering how the volume and value of carbon offsets produced by each of these methods is determined. To be clear, this is no easy task. Monitoring and evaluating emissions and reducing them can be a challenge even for the most experienced agricultural professionals.

Fortunately, when it comes time to list offsets on VCM, a third-party verification professional can collect, analyze and verify data from your property, perhaps even conduct a site visit, to determine how much offset you're eligible for. New technology being developed can also remotely monitor the amount of carbon sequestered in your soil, eliminating the need for any guesswork. (Carboncredits.com)

Reducing carbon emissions is one of the most important issues facing individuals and governments today, as evidenced by the focus on ESG investments, while governments are creating costs through carbon credits to account for climate impact. ESG means  Environmental, Social and Governance . In investing, this refers to investors considering these factors in the companies they invest in. Many ESG investors place great emphasis on the environmental component and have chosen to eliminate environmental pollutants from their portfolio. Instead, they chose to invest in businesses that are trying to reduce dependence on fossil fuels. Meanwhile, governments are limiting companies' carbon emissions through carbon credits. However, these credits can also be used as a source of revenue. What are they? so carbon credits and how will they become the new currency of ESG investing to meet environmental regulations? This article will answer this question by explaining ESG investing and the role carbon credits play in this investment sphere. (Carboncredits.com, Jennifer L)

Right now, voluntary carbon markets are still in their infancy. Having surpassed $10 billion in transaction value in 2022, there is huge room for growth – as well as a number of catalysts. The Working Group on Scaling Up Voluntary Carbon Markets predicts that to meet the climate change goals set out in the Paris Agreement, voluntary carbon markets will need to grow 15-fold by 2030 and 100-fold by 2050 from their current levels. from  year 2020 . These are returns that will make any investor sit up and take notice. 

1. Carbon mutual funds and ETFs

One of the easiest and least risky ways to invest in carbon markets is through a fund. Since many such funds have diversified holdings, this helps reduce the risk of investing in one, although in exchange your potential return will also be lower. (Carboncredits.com)