The new Emissions Trading System (ETS), specifically ETS2 has the potential to provide EU countries with significant financial resourcesThe goal is to use the money earned from trading (viac…)

The aim of this workshop is to support the rapid development and implementation of a purchasing programme to accelerate the market for permanent carbon removal in Europe. The discussions will feed into a study on the proposal (viac…)

💵 Carbon taxation, in particular through the EU ETS2 system for the heating and transport sectors, is an important tool for achieving the EU's climate goals. It is crucial to use it wisely (viac…)

💳 At one of Europe's largest climate events, ChangeNOW 2025, France took a significant step towards building a stronger and more credible carbon market. (viac…)

The European Union (EU) is considering a new plan to help meet its 2040 climate target. The European Commission may allow countries to use international carbon credits under Article 6 of the Paris Agreement, sources said. This would be a major change from the current EU rule that says climate targets must be met only through domestic action. (Jennifer L, more at carboncredits.com)

„Decarbonization of manufacturing companies " (EU ETS) analyses the challenges and opportunities related to the decarbonisation of manufacturing companies in the EU. Decarbonisation of European manufacturing companies is key to achieving (viac…)

Data reported by EU Member States by 31 March 2025 show a 5 % reduction in emissions in 2024 compared to 2023 levels from reporting stationary installations and aircraft operators. Thanks to this development, ETS emissions are now around 50 % below 2005 levels and on track to reach the 2030 target of 62 %.

The observed trend confirms the effectiveness and efficiency of the EU Emissions Trading System as an important policy instrument for the decarbonisation of the European economy. (More on climate.ec.europa.eu)

This one study guide details the creation and content of an open database of geographic boundaries of natural carbon offset projects. These natural climate solutions (NCS) have become an important part of strategies (viac…)

The Science Based Targets Initiative (SBTi) is consulting on version 2 of its net-zero corporate standard, introducing new requirements that will significantly impact the carbon market. The revised standard emphasizes true decarbonization by requiring companies to reduce emissions across all areas before turning to carbon credits for neutrality. Carbon credits remain a complementary tool rather than a replacement for direct emission reductions.

What does this mean for businesses?

SBTi tightens regulations on residual emissions, marking a key shift in the carbon credit industry.

• Companies must set clear carbon removal goals: using interim milestones to ensure a credible path to zero
• Stronger focus on carbon removal: using the “like for like” principle, whereby removals must match the permanence of CO₂ emitted, and a “gradual shift” approach, which requires companies to move to more permanent carbon removals over time
• Removal should complement, not replace, direct reduction measures: The goal is to eliminate residual emissions by the target year with net zero
• Three options for dealing with residual emissions: set separate carbon removal targets, receive recognition for removal efforts, and combine additional reductions with removals
• Take responsibility for ongoing emissions during their transition through Beyond-Value-Chain Mitigation (BVCM): to provide recognition to companies that engage in high-integrity carbon credit purchases, finance emissions mitigation projects, or invest in carbon conservation in natural ecosystems beyond their direct operations.

Why is this important for the industry?

• Strengthens the voluntary carbon market: setting clear guidelines for incorporating carbon credits into net-zero strategies
• Strengthens demand for high integrity credit: SBTi increases the credibility of carbon offsets
• Contributes to long-term climate impact: ensuring that purchased credits meet strict quality and sustainability criteria

Why is this important for businesses?

• Stimulates climate leadership: provides recognition for addressing persistent emissions while allowing flexibility in reduction strategies
• It creates opportunities for organizations: by enabling the demonstration of improved climate action in meeting net-zero commitments

More on marketscreener.com

The Paris Agreement Crediting Mechanism (PACM) is a global initiative designed to improve the quality and integrity of carbon credits. Carbon credits are permits that allow companies to offset their greenhouse gas (GHG) emissions. Companies invest in projects that reduce or remove CO₂ from the atmosphere.

The Paris Agreement Crediting Mechanism (PACM) was established under Article 6.4 of the Paris Agreement. This article allows countries to pool and trade emission reduction units, also known as A6.4ERs (Article 6.4 Emission Reduction Units), to achieve their climate goals.  (More on unfccc.int)

This one methodology defines the structure and procedures for calculating greenhouse gas emission reductions and removal enhancements from projects aimed at preventing deforestation (viac…)

According to the Regulation of the European Parliament and of the Council (EU) 2024/3012 of November 27, 2024 permanent carbon removal unit defines as one metric ton of CO2 equivalent, which corresponds to (viac…)

Verified Carbon Standard (VCS) methodologies are a set of rules and guidelines that determine how to quantify, monitor and reduce greenhouse gas emissions. (viac…)

Thirty percent of global greenhouse gas emissions come from deforestation and inappropriate agricultural practices. Natural climate solutions – also known as (viac…)

The Verified Carbon Standard (VCS) program is the world's most widely used greenhouse gas (GHG) certification program. It incentivizes funding for activities that eliminate these emissions. (viac…)

This document, marked as VMD0001, version 1.2, dated November 27, 2023, entitled "ESTIMATION OF CARBON STOCKS IN THE ABOVE- AND BELOWGROUND BIOMASS IN LIVE TREE AND NON-TREE POOLS (CP-AB)", represents module for estimating carbon stocks in aboveground and belowground biomass of living trees and non-forest woody plants. It was developed within the scope of Sector 14. The original version 1.0 was developed by Avoided Deforestation Partners and Climate Focus, with authorship by Silvestrum Climate Associates, Winrock International, Carbon Decisions International and TerraCarbon. Version 1.1 was developed by Verra and version 1.2 was prepared by Verra with support from Tim Pearson.

The module allows ex ante estimate of carbon stocks in above-ground and below-ground biomass of trees and non-forest woody plants in the baseline scenario (before and after deforestation) and in the project scenario, and also ex post estimate of the change in carbon stocks in aboveground and belowground tree biomass in the project scenarioAll terms used in this module are consistent with the definitions of the VCS program. This module is applicable to all forest types and age classes.

The document describes in detail procedures to estimate carbon stocks, which are divided into four parts:

• Part 1: Aboveground tree biomass (𝐶𝐴𝐵_𝑡𝑟𝑒𝑒, 𝑖): The estimation of average carbon stock is carried out based on field measurements in fixed test plots or by point sampling with prisms, using representative random or systematic sampling. They are available two sampling options:
  • Option 1: Fixed test plots with allometric equation method: Includes determination of tree dimensions (DBH and total height), selection or development of an appropriate allometric equation for a given forest type/species group, estimation of the carbon stock for each tree, and calculation of the average carbon stock for each layer, converted to carbon dioxide equivalents.
  • Option 2: Point sampling with the allometric equation method: Similar to solid plots, it involves measuring tree dimensions, choosing an allometric equation, estimating the carbon stock for each tree at a given point, and calculating the average carbon stock for each layer, converted to carbon dioxide equivalents.
• Part 2: Belowground tree biomass (𝐶𝐵𝐵_𝑡𝑟𝑒𝑒, 𝑖): The average carbon stock is estimated based on field measurements of above-ground parameters in the test plots. Root to shoot ratios are used to calculate belowground biomass from aboveground biomass. in conjunction with the allometric equation method from Part 1. They are available two options:
  • Option 1: Fixed test plots with root to shoot ratio: Includes calculation of the carbon stock in belowground biomass for each plot using the root-to-shoot ratio applied to the estimated aboveground biomass and subsequent calculation of the average carbon stock for each layer, converted into carbon dioxide equivalents.
  • Option 2: Spot sampling with root to shoot ratio: Similar to solid plots, the root-to-shoot ratio is used, applied to the estimated aboveground biomass obtained by the point sampling method, and then the average carbon stock for each layer is calculated, converted to carbon dioxide equivalents.
• Part 3: Aboveground biomass of non-forest woody plants (𝐶𝐴𝐵_𝑛𝑜𝑛𝑡𝑟𝑒𝑒, 𝑖): Average carbon stocks are estimated based on previously published or default data or field measurements. Non-forest woody above-ground biomass includes trees smaller than the minimum size measured for trees, all shrubs and other non-herbaceous living vegetation. Sampling of non-forest vegetation may be carried out using destructive sampling frames and/or, where appropriate, in combination with an appropriate allometric equation for shrubs. The total average carbon stock is calculated as the sum of the average carbon stock from the sampling frame method and the allometric equation method. Available two options:
  • Option 1: Sampling frame method: Involves placing frames at randomly or systematically selected points, cutting and weighing all vegetation inside the frame, determining the wet-to-dry weight ratio on a subsample, and then estimating the average carbon stock per unit area.
  • Option 2: Allometric Equation Method: Used for shrubs, bamboo, or other types of vegetation where individuals can be clearly distinguished. It involves selecting or developing an appropriate allometric equation, estimating the carbon stock for each individual, and calculating the average carbon stock for each layer, converted to carbon dioxide equivalents.
• Part 4: Belowground biomass of non-forest woody plants (𝐶𝐵𝐵_𝑛𝑜𝑛𝑡𝑟𝑒𝑒, 𝑖): The average carbon stock is estimated based on field measurements of above-ground parameters and using root to shoot ratios to estimate belowground biomass from aboveground biomass. This is followed by calculating the average carbon stock for each layer, converted into carbon dioxide equivalents.

In the section 5. DATA AND PARAMETERS details are given about the data and parameters that are available during validation and which they monitorThe parameters available for validation include, for example:

• 𝐶𝐹𝑗 (Carbon fraction): Carbon fraction of dry matter.
• D:ROW: Ratio of DBH to area radius, specific to the basal area factor of the prism used in point sampling.
• 𝑓𝑗(𝑋,𝑌): Allometric equation for species j relating measured tree variables to aboveground biomass. Emphasis is placed on selecting suitable and validated equations with a minimum of 30 measured trees and r² ≥ 0.8. The document lists preferred sources of equations and validation procedures.
• 𝑓𝑗 (vegetation parameters): An allometric equation for non-forest species linking parameters such as stem number, crown diameter, height with above-ground biomass. Emphasis is placed on the use of species-specific equations or equations for groups of species with a sufficient range of measured parameters and at least 30 individuals. Procedures for verifying and creating new equations are also presented.
• R (Root to shoot ratio): The ratio of belowground biomass to aboveground biomass, specific to a species or forest type/biome. Preferred data sources and default values for different ecological zones and aboveground biomass levels are provided.

Between monitored data and parameters include, for example:

• Asp: Area of trial plots in hectares.
• N: Number of point samples.
• DBH: Trunk diameter at breast height in centimeters.
• Asf: Area of one sampling frame in square meters.
• Ar: Total area of all test plots for the allometric method of non-forest woody plants in a given layer in hectares.
• H: Total height of the tree in meters.

For each monitored parameter, data units, description, data source, description of measurement methods and procedures, monitoring/recording frequency, quality control and quality assurance (QA/QC) procedures, data purpose and calculation method, as well as comments are provided.

In the section DOCUMENT HISTORY provides an overview of the document versions and changes made. Version 1.1 corrected a typographical error and version 1.2 updated the VCS methodology template and removed references to VM0007.

Summary: This module VMD0001 version 1.2 provides a detailed framework for estimating carbon stocks in above-ground and below-ground biomass of living trees and non-forest woody plants. Defines applicable conditions, estimation procedures for different biomass components with multiple measurement and calculation options, as well as a list of necessary data and parameters for validation and monitoringThe emphasis is on using appropriate and validated methods and equations, as well as on data quality assuranceThe module is intended for use in projects aimed at reducing emissions from deforestation and forest degradation (REDD+) and other projects in the field of land use, land use change and forestry (LULUCF). Spring

---

Glossary of key terms

• Aboveground Biomass: The total mass of all living vegetation above ground, including the trunks, branches, leaves and reproductive organs of trees and non-grass vegetation.
• Belowground Biomass: The total weight of all living roots of vegetation.
• Carbon Stocks: The amount of carbon stored in a particular component of an ecosystem, such as above-ground and below-ground biomass. It is usually expressed in tonnes of carbon per hectare (t C ha⁻¹).
• Baseline: A scenario that represents the conditions that would exist without the implementation of an emissions reduction project. It is used as a reference point for measuring the emission reductions or carbon sequestration increases of the project.
• Project Scenario: A scenario that describes changes in carbon stocks as a result of project implementation.
• Allometric Equation: Statistical relationship between easily measurable characteristics of a tree (e.g. trunk diameter, height) and its biomass. Used to indirectly estimate biomass.
• Root-to-Shoot Ratio: The ratio of the weight of belowground biomass (roots) to the weight of aboveground biomass (shoots) of a plant. It is used to estimate belowground biomass based on an estimate of aboveground biomass.
• Fixed Area Plot: A sampling method in which an area with precisely defined boundaries is designated for measuring trees and vegetation.
• Point Sampling with Prisms: A sampling method in which the selection of trees for measurement is carried out from a certain point using a special optical device (prism), with the probability of selecting a tree being proportional to the square of its diameter.
• Sampling Frame (Sampling Frame): A physical frame (e.g. circular or square) with a defined area used to collect samples of non-herbaceous vegetation for direct weighing and biomass estimation.
• Carbon Fraction: The proportion of carbon in the dry weight of biomass. Used to convert biomass to carbon content.
• CO₂ equivalent (CO₂-e): A measure of the global warming potential of various greenhouse gases compared to carbon dioxide (CO₂). When estimating carbon stocks, carbon is often converted to an equivalent amount of CO₂.
• Stratum (Layer): A sub-unit of a project area that has relatively homogeneous characteristics (e.g. forest type, stand age). Stratification is used to increase the accuracy of estimates.
• Validation: The process of demonstrating that the methods, data, and parameters used are appropriate and appropriate for the given conditions. In the context of allometric equations, it involves verifying their accuracy using independent data or direct measurements.
• Ex ante: A preliminary estimate or prediction made before the implementation of a project or monitoring activity.
• Ex post: An evaluation or measurement carried out after the implementation of a project or monitoring activity.

Futures for UK emissions permits jumped on Wednesday after comments from the chancellor about the potential for linking the country’s carbon trading system with the EU, Bloomberg reported. The article said Spencer Livermore, the finance secretary at the Treasury, told lawmakers in the House of Lords that the UK was continuing to “explore all options to improve trade and investment with the EU, including for the UK and the EU to seriously consider linking our emissions trading systems.” He did not elaborate, it said. The comments sent the benchmark price of UK carbon futures up as much as 11.3% at the end of this year, the article continued, with “investors keen to hear more from the government about whether it wants to unify the two emissions regimes.”

Eamon Farhat and Will Mathis, Bloomberg

The key differences between permanent carbon removal, carbon agriculture and carbon storage in products within the EU arise mainly from Regulation (EU) 2024/3012 This Regulation establishes a voluntary Union certification framework for these three areas in order to facilitate and encourage their deployment as a complement to sustained emission reductions.

Here are the key differences:

• Permanent Carbon Removals:
  • The goal is to achieve long-term and stable removal of CO₂ from the atmosphere.
  • Regulation (EU) 2024/3012 provides for them qualitative criteria and rules for verification and certification.
  • The amounts of permanent carbon removals fall within the scope of net greenhouse gas removals included in Regulation (EU) 2018/841 on the integration of greenhouse gas emissions and removals from land use, land-use change and forestry into the 2030 climate and energy framework.
• Carbon Farming:
  • It focuses on improving soil management and agricultural practices with the aim of increasing carbon sequestration in soil and biomass and reducing emissions from agricultural activity.
  • “Operator” in the case of carbon farming activities includes: farmers and other managers of activities in terrestrial or coastal environments, forest owners and managers.
  • Regulation (EU) 2024/3012 establishes quality criteria and certification methodologies also for carbon agriculture, including incentives for creating additional environmental benefits.
  • The range of quantities relating to the reduction of emissions from land in carbon agriculture corresponds to the net greenhouse gas emissions from biogenic carbon stocks referred to in points (e) and (f) of Part B of Annex I to Regulation (EU) No 1303/2013. 2018/841.
• Carbon Storage in Products:
  • It is about using products that sequester carbon throughout their life cycle, temporarily or permanently storing carbon outside the atmosphere.
  • An example might be carbon sequestration in harvested wood productsreferred to in Regulation (EU) 2018/841This Regulation lays down rules for accounting for emissions and removals resulting from changes in the carbon stock of harvested wood products in categories such as paper, particleboard and sawn timber, using a first-order decay function and default half-life values.
  • Regulation (EU) 2024/3012 extends this concept to a wider range of products and introduces framework for their certification.

In short, permanent carbon removal is an umbrella term for long-term CO₂ sequestration methods, carbon agriculture is a specific approach in the agriculture and forestry sector to increase sequestration in soil and biomass and reduce emissions, and carbon storage in products concerns the use of materials and products to store captured carbon during their lifetime. Regulation (EU) 2024/3012 aims to create a unified framework for certification of all three areas within the EU. Spring

Microsoft has entered into an agreement with Climate Impact Partners UK-based company to buy 1.5 million carbon removal credits over the next three decades. The credits will come from a large-scale afforestation initiative in India covering 20,000 hectares.

The afforestation project, located in the Panna region of Madhya Pradesh, is backed by Terra Natural Capital, an environmental commodities investment firm. The initiative is expected to generate a total of three million carbon removal credits over its lifetime.

The carbon removal market is in many ways a classic political problem. Companies know they have to act. Governments are moving toward regulation. Investors see opportunity, but they also see risk. And in the middle of it all is a market that should be booming — but isn’t yet. Survey Carbon Dioxide Removal (CDR) Market 2025 , which was carried out by CDR.fyi a Sylvera , offers a fascinating look at why this is happening and what might follow.

Why market forces alone won't solve carbon removal

One of the survey’s most striking findings is that corporate demand for permanent carbon removal is not driven by internal sustainability commitments. It is driven by emerging regulatory frameworks. Sixty-five percent of respondents pointed to clearer net-zero standards—such as those developed by the Science Based Targets Initiative (SBTi) and ISO—as the primary motivator for purchasing permanent carbon credits. (Phil De Luna, more at forbes.com)