Carbon Quantified Edition XXXII: Changing Dynamics of VCM & May 2024 Update
Welcome to the latest edition of Carbon Quantified, your trusted source for navigating the ever-changing landscape of climate action and sustainability.
Overview of the Thirty-Second Edition:
In our latest edition, we delve into the latest developments and shifting dynamics in the voluntary carbon market (VCM), highlighting emerging trends and buyer behavior shaping the future of carbon offsetting.
Our first article, "Changing Dynamics in the Voluntary Carbon Market: Buyer Selectivity and Future Prospects," explores how investor preferences are evolving, with an increasing emphasis on the quality and co-benefits of carbon credits. This shift reflects a broader trend towards more selective purchasing, driven by a desire for greater control and assurance in carbon offset projects. The article provides insights into the factors influencing buyer decisions and the anticipated rebound in demand as regulatory frameworks and integrity initiatives take shape.
In the second article, "May 2024 VCM: New Developments & Trends," we provide an update on the latest movements within the VCM. This piece covers significant trades, international agreements, and policy developments over the past month. Key highlights include the early summer slowdown in market activity, the rise of Article 6-eligible credits, and the impact of high-profile transactions and new regulatory guidelines. These developments underscore the market's potential for growth and the critical role of high-integrity projects in driving global decarbonization efforts.
Stay informed as we provide insights and perspectives on the latest trends and initiatives driving climate action and sustainability, empowering you to make informed decisions for a more sustainable future.
May 2024 VCM: New Developments & Trends
The voluntary carbon market (VCM) witnessed significant developments and emerging trends in May 2024. These updates, encompassing shifts in buyer behavior, notable trades, and international agreements, reflect the evolving landscape of carbon markets and their future prospects.
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Changing Dynamics in the Voluntary Carbon Market: Buyer Selectivity and Future Prospects
The voluntary carbon market (VCM) is experiencing a notable shift in buyer behavior as investors become increasingly selective about the projects they finance. This trend was highlighted at the Argus annual European carbon event in Nice, where stakeholders discussed the current state and prospects of the market. Despite anticipating a substantial demand rebound, many experts believe it may still be years away due to ongoing confusion and hesitancy around credit purchasing.
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Biden Administration Launches New Policy Guidelines for Carbon Credit Buyers and Sellers
The Biden administration announced today the release of “Voluntary Carbon Markets Joint Policy Statement and Principles,” aimed at strengthening and advancing market for carbon credits by setting out the U.S. government’s approach to ensuring the high integrity of voluntary carbon markets (VCMs).
EU Adopts Net Zero Industry Act to Scale up Decarbonization Technologies
The European Council announced today that it has approved the Net-Zero industry Act (NZIA), a new law introducing a framework of measures aimed at scaling up Europe’s manufacturing capacity for technologies key to achieving the EU’s climate goals.
UK Proposes Expanding Emissions Trading Scheme to New Sectors, Carbon Removals
The UK government’s Emissions Trading Scheme (ETS) Authority announced today the launch of a new package of consultations, proposing expanding the ETS carbon pricing system to new sectors, including the energy from waste and waste incineration sectors, and on integrating greenhouse gas removals into the ETS.
Australia Invests Over $5 Billion to Develop Clean Hydrogen Sector
The government of Australia announced today a series of large-scale investments aimed at boosting the country’s clean energy sector, including plans to invest A$8 billion (USD$5.3 billion) in hydrogen production and technology over the next 10 years.
