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
11 August 2025
US company reiterates commitment to CCUS as it agrees to work with major steelmakers to drive large-scale deployment in Asia
7 August 2025
Draft law opens door to large-scale carbon capture and storage, and could unleash investment in gas-based hydrogen projects
6 August 2025
EU industry and politicians are pushing back against the bloc’s green agenda. Meanwhile, Brussels’ transatlantic trade deal with Washington could consolidate US energy dominance
22 July 2025
Sinopec hosts launch of global sharing platform as Beijing looks to draw on international investors and expertise
