“Project Carbon” announced its first trade between the Nature Conservancy of Canada and the UK’s NatWest Group.

The sale included voluntary carbon credits issued by Verra. Verra is currently managing the leading global program to verify greenhouse gas emission reduction projects.

Project Carbon was set up in July between CIBC, Itaú Unibanco, National Australia Bank, and NatWest Group to grow the voluntary carbon credit industry through transparent, consistent pricing and standards.

The overall goal of the project is:

• Increased delivery of high-quality carbon offset projects
• Create a liquid carbon credit marketplace with price certainty and transparency
• Develop a strong ecosystem to support the offset market
• Create tools to help clients manage climate risk

Critics of the voluntary carbon credit industry say without consistency in pricing and standards, the carbon market will fail to deliver on its promises. Since the carbon market provides endless opportunities to improve the environment and drive economic development, efforts such as Project Carbon, can alleviate critic concerns and ensure its success.

Catherine Grenier, President and CEO of the Nature Conservancy of Canada, said that “Nature is our ally in the face of climate change challenges. The Nature Conservancy of Canada’s world-class Darkwoods Forest Carbon project taps the power and potential of private investment to meet our conservation and carbon reduction objectives. We are excited to be part of Project Carbon’s pilot trade, to join in driving advances in nature-based solutions through innovation.”

According to Harry Culham, Senior Executive Vice-President and Group Head of CIBC Capital Markets, “CIBC remains committed to enabling our clients to achieve their climate-related goals through commercial solutions that lead to tangible progress. Investments in technology and innovation are going to be important drivers of a reduction in GHG emissions. Project Carbon is one example of opportunities to unlock the potential of carbon removal, and we will continue to play an active role in helping this sector to grow.”

CIBC is a leading financial institution in North America with over 10 million clients. Their objective is net-zero emissions by 2050, with a sustainable finance target of $300 billion by 2030.

Experts believe the global carbon market can reach $22 trillion by 2050. With prices and interest surging to record levels this year alone, it will be interesting to see how Project Carbon impacts the industry for the better.

Singapore startup Cyberdyne Tech Exchange (CTX) announced the sale of carbon neutrality tokens backed by Chinese carbon credits. These credits will offset nearly 5,000 metric tons of carbon through a wind project taking place in Zhangjiakou. Another 5,000 units will be released later this month.

China’s national carbon trading market issues tokens that contain “shared carbon information including emission records and tracing, carbon offsetting, carbon capture, storage, and reuse.”

This is an additional measure that China’s market is using to ensure that environmental objectives are achieved.

The global carbon market is anticipated to reach a value of $22T by 2050. China, which launched its carbon trading market in July, is expected to hold the largest carbon market in the world once it is fully operational.

Zhangjiakou will co-host the 2022 Winter Olympics, which may be why China (backing the project) is keen to showcase it. China is currently the world’s largest carbon emitter, producing about 10.06 billion metric tons of carbon annually.

As of 2019, this accounted for nearly 27% of the world’s greenhouse gases. The US came in second, at 11%, and India came in third at 6.6%.

China is determined to become a world leader when it comes to combating climate change. Last year, China’s President Xi announced that their emissions would peak before 2030. Their goal is to achieve carbon neutrality by 2060, using methods such as reforestation.

Some feel China’s efforts aren’t driven by environmental concerns but rather by economic growth. If China does not create more environmentally friendly policies, it could affect their ability to trade with the west. Regardless, with China onboard towards reducing emissions, the world reaps the benefits.

This is an all-hands-on-deck situation. The more countries committed to a greener, cleaner future, the better it is for us all.

The global carbon market is expected to reach $22T by 2050 as more companies and investors look for ways to reduce their emissions.

The Paris Agreement is partially responsible for this boom. However, calls for action by world leaders and increased awareness are fueling interest too.

With the UN issuing a ‘code red’ warning and leaders across the globe recommitting to do more for the environment, carbon credits and offsets are a viable solution. The industry combats climate change by reducing greenhouse gases and can help spark economic development around the world.

CBL – Xpansiv is the largest global exchange platform for energy and environmental commodity products, such as carbon, renewable energy, water, and natural gas. And, according to an Ecosystem Marketplace survey that was just released, business is booming.

70.6 million tons of carbon were traded on CBL through August of this year – an increase of 27% from last year. Their market share is currently up 15% from 2020 and 9.4% in 2019.

A record monthly volume of 15,113,044 tons was transacted in August, which is 14% higher than their previous record set in March and 812% higher than transactions in August of 2020. Year-to-date carbon volumes through August totaled 70,623,218 tons (up 291% compared to last year)!

In addition, the adoption of CBL’s GEO and N-GEO VCM benchmarks has grown exponentially, with total volume increasing 29% (2,810,693 tons) in August alone.

Since the beginning of August, both have surged in price, with the GEO rallying from $3.50 to a record high of $7.75 and the N-GEO rising from $5.45 to a record of $8.00.

As carbon markets and projects continue to grow, companies like Xpansiv have shown a dedication to transparent markets, seamless transactions, and high-quality products. With verifications in place and data continuously refined for accuracy, these figures show that the carbon market has real promise and potential.

*Data courtesy of Xpansiv.

The ‘Taskforce on Scaling Voluntary Carbon Markets’ is a private sector initiative working to scale the voluntary carbon credit market to help meet the goals of the Paris Agreement.

They recently formed a new, independent governing body to set global carbon credits and offsets benchmarks.

The Taskforce will have 22 Board members from 12 countries – half of which are from the global south. Over 250 organizations will be a part of creating the international standard.

Companies, investors, and individuals see value in the carbon credit and offset industry. However, critics worry about offset project quality and the way carbon is measured and priced. Practices such as greenwashing and double washing are cause for concern as well.

Plus, if different areas have different emissions standards, progress can be affected.

The Taskforce recognizes that these issues could prevent the carbon market’s success. In addition to creating global benchmarks, they are committed to addressing greenwashing, double-washing, and regional differences. Their goal is to make sure the carbon market delivers as promised.

UK Voluntary Markets Forum’s Chair Dame Clara Furse said, “Carbon credits are an important step in securing a path to net-zero. The work of the Taskforce has been essential in setting out a clear pathway towards significantly scaling voluntary carbon markets, whilst ensuring they are transparent, well-governed, verifiable, and robust.”

The threat of climate change is real, and carbon credits and offsets are a viable solution.

Global benchmarks and additional verifications will only help improve the market moving forward. With the global carbon market expected to hit $22T by 2050, these reforms are needed.

Companies across the globe are racing to meet climate change targets. Their solution? Carbon credits, which have topped $748 million this year. If demand continues, carbon credits may even reach $1 billion by the year’s end.

If you aren’t familiar with the carbon credit industry, here’s how it works:

Credits are purchased through the carbon marketplace. One credit equals one ton of carbon offset through an environmental project.

The most active offset buyers are within the energy, consumer goods, finance, and insurance. Investors have increased speculative buying from those looking to profit from trading offsets as well.

Right now, offsets from forestry and land use are the most popular. Renewable energy is at a close second.

Carbon credits are a win for companies, and individuals, who can use these credits to offset their emissions. They also benefit those completing these projects, such as farmers in underdeveloped regions.

Some skeptics feel the carbon market doesn’t deliver what it promises. They are concerned about the lack of regulation and oversight. The former Governor of the Bank of England, Mark Carney, recognizes this and is working on designing new rules that can improve the system.

Other critics say that some offset projects, such as those focused on renewable energy, are unnecessary. Governments and companies worldwide are switching to cleaner forms of power even without the credit industry, which is why two market programs have stopped offering them.

While it is fair to say that some reforms to the system are necessary, renewable energy is still an integral part. The more investments being made into it, the better. Plus, the verification process is not a free-for-all. Procedures are in place to ensure that the market is accurate. And, with interest booming, operations will only get better.

The call to meet ESG demands is loud and clear. With the world seeking to reach carbon neutrality and net-zero emissions, it’s no wonder that interest in carbon offsets continues to grow.