Green money into greener planet’s Post

Understanding Compliance Carbon Credit Markets, also known as Emissions Trading Systems (ETS) is essential for businesses aiming to reduce their carbon footprint and meet regulatory requirements. Currently, three primary Emissions Trading Systems exist globally: - European Union’s Emissions Trading System: EU ETS (EU) - The California Global Warming Solutions Act (USA) - The Chinese National Emission Trading System (China) The value of the global carbon credit market reached ~$850 billion in 2021, a 164% increase from 2020. However, Investing in compliance carbon credit markets carries two main risks. The first is related to policy changes or errors, as fluctuating carbon prices can either discourage investment in green projects if too low or hinder economic growth if too high. The second risk involves geopolitical tensions, which can affect various commodity markets. This is why diversification is essential when investing in carbon markets. Opportunities for diversification include investing internationally, such as: California ETS vs the EU ETS, Across compliance cycles within an ETS, like EU ETS 2022 futures vs EU ETS 2023 futures. Additionally, diversification can occur between compliance and voluntary credits. Among these, diversifying between compliance and voluntary credits is the most crucial. This comprehensive guide from Carbon Credits provides valuable insights into how these markets operate, the role of carbon credits in compliance, and the benefits for organizations. You can read the full guide here: https://lnkd.in/dJThJ_n5 #Sustainability #CarbonCredits #ClimateAction #Compliance #GreenBusiness #ETS #innovation #sustainability #carbonfootprint #greentech

Voluntary vs. compliance carbon markets – what's the difference❓ Reducing and removing emissions from the atmosphere are both critical to tackling climate change and achieving #netzero by 2050. 🌎🌿 They can be done via: 🛒 Compliance carbon markets: typically regulated by mandatory national or international carbon #reduction schemes such as carbon taxes or cap-and-trade-schemes (source: Deloitte). 🛒 Voluntary carbon markets: operate outside of compliance markets and typically do not involve any direct government or regulatory oversight. The #VCM includes the trading of carbon credits through individuals or companies who offset their #CO2 emissions via #carbonremoval projects (source: Carbon Gap). But... it's getting difficult to distinguish the markets with so much happening in the industry! Eve Tamme's latest article discusses the growing convergence between voluntary and compliance #carbonmarkets. And highlights the need for new market metrics to better track and compare data, ultimately ensuring informed decision-making to help scale the industry. 📈 Read the full article here 👇🏼

🌍 𝐓𝐰𝐨 𝐒𝐢𝐝𝐞𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐂𝐚𝐫𝐛𝐨𝐧 𝐂𝐨𝐢𝐧: 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐕𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐂𝐚𝐫𝐛𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 🌍 As we strive towards the ambitious goals of the Paris Agreement, carbon markets are emerging as a pivotal tool in reshaping our energy landscape. Article 6 of the Paris Agreement paves the way for international cooperation in achieving National Determined Contributions (NDCs) through carbon pricing, driving both compliance and voluntary efforts to mitigate climate change. 🔵 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐂𝐚𝐫𝐛𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 🔵 Compliance markets, enforced by laws and regulations, establish a price on carbon emissions through mechanisms like: 1. 𝐂𝐚𝐩 𝐚𝐧𝐝 𝐓𝐫𝐚𝐝𝐞: Limits pollution and creates a market for carbon credits. 2. 𝐂𝐚𝐫𝐛𝐨𝐧 𝐓𝐚𝐱: Sets a fixed price per ton of carbon emitted, incentivizing businesses to reduce emissions. Despite the global energy crisis of 2022, emissions trading schemes (ETSs) and carbon taxes showed resilience. Countries like Ireland, the Netherlands, Canada, and Switzerland maintained their carbon pricing strategies, highlighting the need for sustained and increased carbon prices to drive investments towards climate neutrality. 🌿 𝐕𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐂𝐚𝐫𝐛𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐬🌿 Voluntary markets complement compliance efforts by allowing businesses and individuals to offset their carbon footprint through projects that reduce or remove greenhouse gases. These markets foster innovation and corporate responsibility, playing a crucial role in the global transition to a sustainable future. Join the conversation on how carbon markets can drive us towards a greener, more sustainable world! 🌱💡 #ClimateAction #CarbonMarkets #Sustainability #ParisAgreement #GreenFuture Read more in our latest article by Omkar Kajrolkar and Raghav Sharma: https://lnkd.in/ePWjKJ6J --- Feel free to customize this post with your personal insights or company-specific details!

New SEC Reporting Requirements: Disclosure of indirect (Scope 3) emissions withdrawn In a pivotal move, the U.S. Securities and Exchange Commission (SEC) has updated its reporting requirements, impacting how corporations disclose their carbon offset usage and greenhouse gas emissions. While the push for comprehensive transparency in direct emissions reporting sees a more phased and size-dependent implementation, the most notable shift comes with the dropping of value-chain carbon emissions reporting. Amidst robust debate from corporate giants and legislative voices, the requirement to disclose indirect Scope 3 emissions—which often represent the bulk of a company's carbon footprint—has been withdrawn. This development may seem like a setback for transparency advocates, but it’s important to note that U.S. corporations will not be entirely off the hook. International regulations, such as the EU’s Corporate Sustainability Reporting Directive, the International Sustainability Standards Board framework, and California’s climate regulations, ensure that value-chain reporting remains a critical piece of the global sustainability puzzle. The gradual implementation of requirements for Scope 1 and Scope 2 emissions signifies a cautious approach to environmental reporting, aligning with global standards yet reflecting domestic concerns. As the landscape of corporate responsibility evolves, the discussion continues: do you wait for the politicians to dictate what you have to do, or do you contact CarbonLeap and become a front runner, go the extra mile and start killing carbon in your supply chain today? #sustainability #corporateresponsibility #sec #sustainabilityreporting #climatechange #environmentaltransparency

The latest State and Trends of Carbon Pricing by The World Bank is out, examining international #CarbonMarkets. Selected findings: More progress is needed on #Article6, and expectations are high for #COP29 to resolve outstanding issues. In voluntary markets #VCM, last year saw a significant drop in the market value of traded #CarbonCredits, from USD1.87 billion to USD723 million. The buyers are increasingly sophisticated, directly involved in project due diligence, and prefer high-quality investments. Higher prices are paid for projects with co-benefits, projects with #Article6 Letter of Authorisation, and projects rated by independent agencies. #CarbonRemoval credits trade at a premium compared with avoidance and reduction credits. Technology-based removals, such as #DACCS and #EnhancedWeathering and #biochar trade at significantly higher prices. This is due to the perception of higher quality in technology-based removals, providing assurance of fewer baseline issues or concerns about overcrediting. The inconsistent guidance on the use of carbon credits for corporate #netzero goals, coupled with concerns about the quality of reduction credits, has led buyers to prefer removal credits. There has been a noticeable increase in demand from buyers for advanced market commitments related to carbon removal projects, both technology-based and nature-based. The figure below grasps the key challenges (numbered in the middle) and recommendations (in the outside circle). Check out the full report: https://lnkd.in/erzi9--q

the annual The World Bank state & trends report is always a useful read for those that want to get a sense of where carbon pricing is evolving - no surprises on these points for those that are involved in the market. We're seeing significant price differences by perceived quality, project "fit", and also more focus on governance in DD including on financial flows in projects - much needed but hoping that also leads to longer-term off-take contracts. Thanks for flagging the report Eve Tamme

The U.S. Securities and Exchange Commission has this week approved the rule, in line with #TCFD recommendations, requiring 12,000 US companies to publicly disclose information on their #emissions. Our CEO Eelco van der Enden said: “I welcome that this decision by the SEC will mean more US companies provide consistent & reliable information about their climate risks, as called for by investors and other stakeholders. It is an incremental step in support of the #lowcarbon transition and global aims to address #climatechange. We hope that requirements for scope 3 emissions will be taken into future consideration in order to align the USA with other internationally applicable #sustainabilityreporting frameworks.” #Scope3 covers emissions in the #supplychain, which is a reporting requirement in the #GRIStandards, the IFRS Sustainability Disclosure Standards set by the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards #ESRS set by EFRAG. Scope 3 reporting is also included in the recent California State Climate Law. https://lnkd.in/g5YFj-SP

Let all support sustainability reporting. Let all support change and be environmentally responsible

Negotiations on Article 6 carbon markets formally reconvene in Bonn (https://lnkd.in/eVcC8YgW) from 3-13 June after talks collapsed at COP 28 in Dubai: https://lnkd.in/egt8S99V With the announcement of more and more country-country trades under Article 6.2, implementation is rapidly accelerating, but in the absence of full rules defining the scope, transparency, and oversight of the system (see CMW’s FAQ on Article 6: https://lnkd.in/dp2FaDir) This is problematic since carbon credits traded via Article 6 will have real-world impacts on the ambition and achievement of climate targets of countries (NDCs) and companies. In response, Carbon Market Watch calls on negotiators to “reset” talks at SBSTA 60 to re-prioritise transparency and rigorous environmental and social safeguards. For example by requiring trade agreements to be reviewed before credits can be used and ensuring there are meaningful consequences in cases of non-compliance with Article 6.2 rules (poor quality credits or negative impacts on human rights discovered ex-post). For CMW’s recommendations to Article 6 negotiators, check out our briefing: https://lnkd.in/eFPRpENR CMW’s team Isa Mulder and Jonathan Crook will be on-site in Bonn to follow the negotiations from 3-13 June.

International Comparison November edition ON AIR! 📢   What's in this issue: Carbon credit market regulations.   💡 This edition includes numerous country focus pieces, in which it is analyzed the Carbon credit regulations across various jurisdictions. Find out more about the regulatory system of the carbon credit market, which optimizes its issuance, enhances transparency, and facilitates compliance with global emission reduction targets.   Enjoy the publication: https://lnkd.in/geWBBq99   🌐 For assistance and comprehensive advice in any of the countries, please contact your nearest advisor: https://lnkd.in/dKt9KKw   #CarbonRegulations #sustainability #international #newsletter #AnteaAlliance