Carbon markets are under pressure
Letter on carbon: Credit risk
The US government has joined an increasingly desperate global push to restore confidence in the voluntary carbon market
The need to restore confidence in the voluntary carbon market is becoming more pressing by the day. Lingering doubts over the creditability of offsets threaten to undermine the potential of a market that has long been earmarked as a key channel for climate finance and a driver of emission reductions. Issuances of carbon credits in 2023 fell for the second consecutive year, according to the World Bank’s latest report on the state and trends of carbon pricing. The two largest project categories—renewable energy and emission avoidance projects in forestry and land use—both faced a near 50% drop in issuances. Concerns over the integrity of credits have hit avoided deforestation projects particul
Also in this section
10 June 2025
Eni’s CCUS deal with BlackRock’s Global Infrastructure Partners reflects a growing belief among big investors in the CCUS growth story
3 June 2025
Africa faces challenges in adopting CCS but also has vast potential, with the technology being not just a climate tool but a catalyst for development
2 June 2025
Rather than a simple climate option, CCS is now being seen as a workable solution for Africa’s growth strategy
27 May 2025
EU Parliament and Council both agree to exempt bulk of importers from paying a carbon tax on goods imported into the EU
