Carbon Pulse

The joint WCI carbon market’s generous allowance budgets are likely to be ineffective in reaching the jurisdictions’ CO2 reduction targets for 2030, academic researchers warn, instead recommending large cap adjustments or widened scopes while likening the cap-and-trade system to an overly complicated carbon tax.

Rimba Raya is struggling to keep afloat after the concession holder of the popular Indonesian REDD+ project drastically cut staff numbers and warned there could be a sharp drop in voluntary carbon credit issuance, possibly impacting historical supplies, after it adopts Verra’s new consolidated methodology for avoided deforestation.

Speculators continued to de-risk across North American carbon markets, while WCI compliance entities built vintage 2025 holdings this week, according to data from the US Commodity Futures Trading Commissions (CFTC) released Friday.

A Florida-headquartered paint producer this week unveiled a subsidiary with plans to build a facility in Arizona that will use captured CO2 to manufacture concrete products.

Carbon Pulse rounds up recent developments in compliance carbon systems within the Latin America and Caribbean region, taking a look at Brazil's stabilising market for emissions reductions credits from biofuels after a year of rising prices, and summarising the carbon tax regimes that accept offsets.

US energy-related CO2 emissions decreased slightly year-on-year in 2023, largely due to reduced coal-fired electricity generation as natural gas and solar power generation increased, according to federal data.

A major Canadian global asset manager announced on Friday the second close of its forest fund, investing in sustainably managed forests where carbon sequestration is prioritised over timber production.

Two Texas-based soil management companies are collaborating with the state’s property owners association to engage landowners in nature-based carbon capture initiatives and credit generation.

The UK's Financial Conduct Authority (FCA) has published guidance aimed at helping financial firms comply with a forthcoming anti-greenwashing rule aimed at building trust in sustainable investments, including to help companies decarbonise. 

The production of green hydrogen during periods of high renewable energy supply could help save the UK hundreds of millions of pounds each year in curtailment costs, according to a report by an engineering company.

Carbon standard Social Carbon plans to release a methodology for 'nature stewardship credits' during the third quarter of this year at the latest, with the first pilots expected to launch in 2025, the company has told Carbon Pulse.

The French government will authorise the construction of its first carbon storage facilities, signing contracts with some of the largest emitters in the country as part of its efforts to reach net zero emissions by 2050, Industry and Energy Minister Delegate Roland Lescure announced on Friday.

The EU’s carbon border adjustment mechanism (CBAM) will drive up prices of aluminium, as it fails to address a loophole for process scrap that could lead to vast amounts of carbon emissions being imported into the bloc, a report by a consulting firm and a panel of industry and NGO experts warned this week.

A soil database for small farmers would help financial institutions scale up the nascent biodiversity credits market, an expert at French investor Mirova has said.

A German-based climate finance company and a startup focusing on MRV solutions for durable carbon removal have teamed up to advance biochar projects and verify their climate impact.

A plastic offsetting project backed by a food and drink multinational has been suspended on Verra’s plastic credit registry following complaints by the local community that the recycling facility was built illegally close to their land and without proper consultation, leading to withdrawal of involvement by the multinational.

Large voluntary carbon project developer and investor South Pole has secured fresh financing from its largest shareholders, setting the company up for the next phase of development following recent changes in senior leadership, it announced this week.

Japan has decided to officially introduce a market maker mechanism to boost liquidity in its exchange-traded domestic carbon market.

European carbon permit prices were headed for a second weekly loss in succession on Friday as prices retreated in concert with TTF natural gas, with sources reporting some profit-taking ahead of the weekend.

Some companies, including international ones, are already trying to hedge their CBAM certificate exposure by buying EUAs on the forward market, but this additional demand will not impact EUA prices, according to market observers.