Carbon Market News

CDR.fyi and OPIS have released a report based on their second durable carbon dioxide removal (CDR) pricing survey. The report found that the pricing gap between buyer willingness to pay and supplier expectations for durable CDR has narrowed slightly, from an average of $107 per tonne in 2025 to $98 per tonne this year. Buyers prioritise permanence exceeding 1,000 years, transparency, and proven track records, with premium paid for certified co-benefits. While prices are expected to decline across most durable CDR pathways, Biochar Carbon Removal and Bioenergy with Carbon Capture and Storage (BECCS) show stronger price resilience, with neither buyers nor suppliers expecting prices below $100 per tonne soon.

Verra has appointed Agresta, Space Intelligence, and a consortium of TerraCarbon and Clark Center for Geospatial Analytics (CGA) under five-year, non-exclusive agreements to produce deforestation risk maps for project baselines. These maps, used for projects under Verra's VM0048 and VMD0055 methodologies, aim to accelerate the provision of open-access data and streamline project development. The firms will develop jurisdictional activity data, forest cover benchmark maps, and allocated deforestation risk maps for six initial jurisdictions assigned on a rolling basis. Agresta will map Argentina and Equateur Province in the DRC; Space Intelligence will cover the Philippines and Mato Grosso State, Brazil; while TerraCarbon and CGA will handle Papua New Guinea and Pará State, Brazil. Both Verra and the data service providers will receive a share of the Project Activity Data Allocation (PADA) fee charged to developers.

American Carbon Registry (ACR) released Version 2.0 of its carbon capture and storage methodology, expanding eligibility for projects across the United States and Canada. The updated framework now permits storing carbon dioxide in saline reservoirs and depleted oil and gas fields. It also extends credit qualification to biogenic carbon sources, direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), and biomass carbon removal and storage (BCRS) systems. This revision aligns monitoring and verification requirements with U.S. EPA Class VI geologic sequestration rules. The methodology retains provisions for enhanced oil recovery (EOR) projects while introducing expanded accounting for associated emissions.

The European Banking Federation (EBF) has urged the European Commission to impose strict limits on the use of international carbon credits within the EU’s post-2030 climate framework. In its submission to the consultation on the bloc's 2040 climate goal, the EBF stated credits should only address residual emissions not eliminated through domestic efforts. The federation emphasised that emission reduction must always take priority and called for stringent quality criteria, ensuring only 'high-integrity standards' credits are eligible. This position reflects an industry desire to balance cost efficiency with environmental credibility, as the Commission prepares legislative proposals for the next phase of EU climate policy.

Verra has opened a public consultation for its draft Methodology for Enhanced Forest Sequestration with Dynamic Baselines using Randomized Control Trials (M0274) within the Verified Carbon Standard (VCS) Program. The proposed methodology expands the scope of Verra’s Improved Forest Management portfolio to include active interventions that accelerate tree growth rates and increase tree survival, such as fungal inoculation or mixed-species planting. It introduces a co-located control area approach, analogous to experimental field trials, to serve as a direct baseline for measuring carbon benefits, aiming to enhance methodological integrity. This approach reduces reliance on modelled baselines and improves causal attribution of climate benefits. The consultation runs from May 6 through June 8, 2026, for a methodology developed by Funga and partners.

Gold Standard published four updated clean cooking and thermal energy methodologies on 5 May, applicable to all credit vintages from 2026. These updates, along with a new digital monitoring tool, modernise carbon accounting across the cookstove sector. More than a third of Gold Standard's project portfolio now accesses Paris Agreement-aligned methodologies through these revisions. Key changes include downward adjustment factors for alignment, robust baseline-setting rules, and cradle-to-gate embodied emissions accounting. An optional D-SMART tool enables sensor-based, automated fuel tracking to improve accuracy and reduce monitoring burden.

The Integrity Council for the Voluntary Carbon Market (ICVCM) launched a public consultation on 5 May 2026 for a proposed Core Carbon Principles (CCP) rule architecture. This framework aims to ensure consistent interpretation and application of the CCPs and the CCP Assessment Framework, addressing practical experience gained since their publication. The consultation, open until 7 June 2026, focuses on the architecture's structure, guiding principles, and the role of instruments like Interpretations and Technical Notices. This initiative seeks to strengthen integrity and provide stability for market participants. If approved, it would guide future regulatory instruments, with specific evolving rule base instruments developed from Q4 2026, without immediately altering existing CCP requirements.

California's Energy Commission (CEC) has opened a funding round worth up to $11 million for two to four pre-commercial Direct Air Capture (DAC) demonstration projects. Individual awards will range from $2.5 million to $5.5 million, requiring applicants to provide at least 20% match funding and allocate 7% of CEC funds to community engagement. Projects must target a capture cost ceiling of $450 per metric ton of CO2, energy consumption below 1,400 kilowatt-hours per metric ton, and a net removal capacity of at least 500 metric tons of CO2 per year. This initiative underlines California's focus on scaling DAC with integrated social licensing requirements.

Colorado and Wyoming have signed a Memorandum of Understanding (MOU) to coordinate permitting for carbon dioxide (CO2) storage projects that may cross state borders. The agreement aims to streamline regulatory processes for projects located near the Colorado-Wyoming border, including those within one mile of the state line, while maintaining environmental and safety standards. It establishes a structured process for early notification and consultation between regulators to improve communication and reduce uncertainty for developers. This coordination supports the expansion of carbon capture and storage (CCS) activity and highlights the growing need for cross-jurisdictional approaches in carbon management.

India's climate technology company Prithu has closed a $1.1 million funding round, led by Transition VC, to expand its carbon removal platform for smallholder farmers. Founded in 2024, Prithu develops high-integrity carbon credits from regenerative agriculture practices like soil organic carbon enhancement and biochar application, verified by a proprietary digital monitoring, reporting, and verification (MRV) system against international frameworks including Verra and Gold Standard. The capital will be used to onboard smallholder farmers in key Indian agricultural regions, strengthen blockchain-powered monitoring infrastructure, and secure long-term offtake agreements. Prithu aims to expand to 123,000 acres (500,000 hectares) of nature-based solution projects over the next 12 to 24 months, targeting 20 million tonnes of CO2e sequestration by 2030.

Verra opened five projects for public comment during the week of 27 April 2026, a standard process for transparency and rigour in its standards programmes. The projects include the PLUM Peat and Mangrove Conservation and Restoration Project and the Ghana Plastic Waste Recycling Project. Public feedback on these projects, which closes between 24 and 30 May 2026, will be published to their records on the Verra Registry. Project proponents must consider these comments, which inform whether projects meet programme requirements prior to Verra's internal review.

Verra today released final unplanned deforestation allocated risk maps for Colombia, Cambodia, and the Mai Ndombe province in the Democratic Republic of Congo. These maps are essential for project proponents to proceed with development and registration of new REDD projects under the VM0048 methodology and VMD0055 module. This brings the total number of jurisdictions with final risk maps to nine, including Peru and five Brazilian states. Verra also updated its timetable, anticipating final risk maps for Guatemala in Q3 2026 and provisional maps for Papua New Guinea in Q2/3 2026, alongside some Brazilian states by Q4 2026.

Verra has reinstated eight natural climate solutions (NCS) carbon projects in China, following the completion of quality control reviews (QCRs) initiated in December. These projects, covering afforestation, reforestation, and grassland management, were part of a broader review of 35 China-based NCS projects launched to verify valid government authorisation. Reinstatement occurred after validation/verification bodies (VVBs) confirmed local Chinese authorities had affirmed their authorisation for each project. The projects can now proceed with verification and request credit issuance on the Verra Registry.

Verra has published performance data for validation/verification bodies (VVBs) based on project review requests closed in 2025. This release stems from Verra's VVB Performance Monitoring Programme (PMP), which aims to enhance transparency and support project developers in selecting auditors. The data covers VVB success rates across the Verified Carbon Standard (VCS) and Climate, Community & Biodiversity Standards (CCBS) Programmes. Stakeholders can review these results by methodology or project category, with the initiative seeking to strengthen VVBs' overall auditing capacity and ensure project integrity.

Verra has opened public comment periods for 12 projects seeking registration across its various standards programmes. The projects, which include REDD+, improved cookstoves, and waste-to-energy initiatives, saw their comment windows open during the week of April 20. This process ensures transparency and rigour, allowing public feedback on whether projects meet programme requirements. All comments received by Verra are published to the project record and must be considered by the respective project proponent. Public comment periods for these projects close between May 17 and May 24.

Verra has published VMR0017 Grid-connected Electricity Generation from Renewable Sources, v1.0, a significant revision to the Clean Development Mechanism's ACM0002 methodology. The new methodology expands geographic eligibility for wind, geothermal, and terrestrial solar projects to countries classified as low, lower-middle, or upper-middle income by the World Bank. It also incorporates new provisions for battery energy storage system (BESS) fire suppression emissions and embodied emissions leakage, and replaces several CDM tools with corresponding VCS tools. From 1 January 2027, all new projects and project activity instances must apply VMR0017. ACM0002 and AMS-I.D. will be inactivated as standalone methodologies in the VCS Programme on the same date.

Climate-vulnerable nations, convened by the Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) and VCMI on 23 April, showcased progress in developing high-integrity carbon markets. Barbados's Sherpa, H.E. Elizabeth Thompson, stated that carbon finance could 'unlock an additional US$20 billion by 2030' for these countries. Bhutan launched a Carbon Market Information Platform, while Ghana outlined Article 6 projects, including 10 million carbon credits from its Forest Investment Program. The Philippines adopted a Voluntary Forest Carbon Market Roadmap and will host an ASEAN Carbon Market Forum in September 2026. These initiatives aim to build architecture to attract climate finance, with Malawi emphasising strong legislative foundations to ensure community benefits.

Verra published a new 'Methodology for Coastal Resilience Benefits from Restoration and Protection of Mangroves and Tidal Marshes' on 22 April 2026 within its SD VISta programme. The methodology quantifies reduced damage to property at risk of flooding, in US dollars, due to coastal ecosystem restoration or protection projects. It generates tradable Coastal Resilience Assets, which cannot be used for offsetting purposes, and optional claims of People Resilience Benefits. This offers a standardised pathway for developers to measure flood risk reduction. The methodology provides buyers, such as insurance companies, a strategic investment opportunity to reduce climate hazard exposure and can be implemented alongside existing blue carbon methodologies VM0007 and VM0033.

VCMI published an analysis exploring how high-integrity carbon markets can finance climate-resilient agriculture in Latin America and the Caribbean (LAC). Despite global climate finance for agrifood systems reaching USD 94.9 billion in 2021-2022, only 5% (USD 6 billion) went to LAC, where agriculture accounts for 55% of emissions. The region requires a 27x increase in funding to USD 160 billion annually through 2050 for climate-resilient agricultural transition. The analysis suggests carbon markets can bridge this gap, particularly as agriculture-based credit prices rose 18-20% in 2024. It concludes that government-led frameworks are crucial to transform fragmented credit generation into structured investment platforms.

The Integrity Council for the Voluntary Carbon Market (ICVCM) has published a report outlining integrity requirements for 'transition credits', categorising them as a credible but complex type of carbon credit. These credits, generated from the early retirement of fossil fuel power plants and their replacement with cleaner energy, require tailored guidance to ensure high environmental and social integrity. The report recommends developing a robust 'just transition' definition and clarifying methodologies for additionality, leakage, and renewable energy pairing. It also highlights the importance of host-country policy alignment and competent validation and verification bodies for these novel crediting approaches. The findings will inform future development of the CCP Assessment Framework but do not immediately affect ongoing assessments or endorse specific methodologies.

The Integrity Council for the Voluntary Carbon Market (ICVCM) plans to evolve its Core Carbon Principles (CCP) Assessment Framework in 2026, building on experience gained since its July 2023 publication. To date, nine carbon crediting programmes are CCP-Eligible, and 38 methodologies have been approved, enabling an estimated 108 million credits to be CCP-labelled, with 54 million unretired as of March 2026. Market analysis indicates rising buyer demand and price premiums for CCP-labelled credits. The ICVCM noted that 17 of the approved methodologies are new or updated versions, expecting rapid growth in the pipeline of CCP-eligible carbon credits. The organisation continues stakeholder engagement, including new work on digital monitoring, reporting and verification with the World Bank.

The Voluntary Carbon Markets Integrity Initiative (VCMI) and the Clean Cooking Alliance (CCA) released a new guide, 'Regulatory Sandbox to Support Carbon Markets', on 30 March 2026 in Lagos. The guide, supported by FSD Africa, offers governments a framework to test and refine carbon market regulations and financial innovations within controlled sandbox environments. It addresses challenges like inconsistent credit quality and regulatory uncertainty, aiming to balance financial innovation with environmental integrity and investor protection. The tool supports the trialling of innovations such as carbon-credit linked bonds, blockchain carbon registries, and tokenised credits, particularly to unlock climate finance in emerging markets.

The Integrity Council for the Voluntary Carbon Market (ICVCM) has published a new report recommending enhancements to voluntary carbon market infrastructure and systems. Emerging from its Continuous Improvement Work Program, the report calls for greater alignment around international standards, improved auditability, and harmonised data formats. It also advocates for better disclosure of fee structures, pricing, and transparent benefit-sharing arrangements, alongside more consistent risk and financial classification frameworks. These measures aim to address market fragmentation and inconsistency, fostering a more resilient, interoperable, and scalable market. The findings are expected to inform future refinements to the ICVCM's Core Carbon Principles (CCP) Assessment Framework.

The Integrity Council for the Voluntary Carbon Market (ICVCM) launched a Continuous Improvement Work Program (CIWP) on digital Measurement, Reporting and Verification (DMRV), co-facilitated with the World Bank. This follows a stakeholder survey identifying opportunities like improved accuracy and transparent audit trails, alongside risks such as data integrity issues and model bias. The survey highlighted calls for clearer roles, principles-based guidance, and maintaining human oversight. A CIWP working group will begin meeting in March 2026 to explore strengthening integrity in digital carbon markets, focusing on key areas including data quality and algorithmic governance.

The Integrity Council for the Voluntary Carbon Market (ICVCM) has confirmed Rainbow (formerly Riverse) as the ninth carbon crediting programme to achieve CCP-Eligible status. This approval applies specifically to Rainbow Standard Rules v7 or later. CCP-Eligible programmes meet the Core Carbon Principles' (CCP) rigorous assessment framework for governance, tracking, transparency, and independent third-party validation and verification. This status now allows Rainbow's individual methodologies to undergo ICVCM assessment, enabling credits from CCP-Approved methodologies and v7 or later of its standard to receive the CCP-label. Rainbow, a French-headquartered programme with over 80 registered projects, had previously been considered partially consistent by CORSIA under an earlier standard version (v5).

The Voluntary Carbon Markets Integrity Initiative (VCMI) and GIZ, supported by regional alliances, released a playbook on 26 February outlining nine priority actions to develop Africa-based validation and verification bodies (VVBs). The report, 'Pathways for Strengthening Validation and Verification Body (VVB) Capacity in Africa', highlights that non-African auditors conduct over 90 per cent of verification activities, contributing to 10-50 per cent of carbon project delays and cost overruns. Despite Africa issuing 12.2 million carbon credits in 2024, the continent risks losing approximately USD $1 billion in economic benefits over five years without scaling local VVB capacity. Building this capacity is crucial for ensuring the integrity of African credits, retaining economic value within the continent, and meeting rising demand for high-integrity offsets, including for Article 6 mechanisms.

The Integrity Council (ICVCM) launched its second Continuous Improvement Work Program (CIWP) on 18 February 2026, aimed at strengthening permanence requirements for voluntary carbon credits. This programme focuses on refining how reversal risk is assessed, mitigated, and how liability for reversals is distributed and compensated for. Building on recommendations from its May 2025 permanence report, the ICVCM seeks to standardise practices across the market, addressing current inconsistencies. Key areas of work include stress-testing buffer reserve pools, developing more standardised approaches to reversal risk assessment, and exploring extended long-term monitoring and liability mechanisms.

On 5 February 2026, the Integrity Council for the Voluntary Carbon Market (ICVCM) granted CCP approval to three methodologies from Isometric, Gold Standard, and ACR. Isometric's ISM Reforestation Protocol v1.1 received unconditional approval, with 20 projects registered and over 4 million annual credits expected by 2030. Gold Standard's Methodology for methane emission reduction in rice cultivation v1.0 received conditional approval; its 50,000 existing credits are ineligible, but 3.2 million projected credits could qualify if additionality and soil organic carbon loss risk conditions are met. ACR's IFM on Non-Federal US Forestlands v2.0 also received conditional approval, requiring a dynamic evaluation of the baseline.

Indonesia’s Ministry of Forestry joined the Coalition to Grow Carbon Markets on 20 January 2026, becoming its eleventh government member. The Coalition, co-chaired by the UK, Singapore, and Kenya, aims to scale the use of high-integrity carbon credits to unlock climate finance and advance global climate goals. Indonesia brings world-leading expertise in forest-based and nature-based solutions, possessing significant natural capital including the world's third-largest tropical rainforest. This membership is intended to help drive private sector investment into high-integrity projects that conserve forests and reduce emissions.

The Voluntary Carbon Markets Integrity Initiative (VCMI) stated that carbon credit markets can anchor climate cooperation in 2026. VCMI's Executive Director, Mark Kenber, highlighted that high-integrity markets are crucial for lowering mitigation costs and mobilising finance, with over 70% of Nationally Determined Contributions signalling Article 6 use. Confidence is improving due to finalised Article 6.4 eligibility rules and recovering demand, exemplified by Microsoft's purchase of over 25 million carbon removal credits. VCMI noted that plurilateral government initiatives, such as The Coalition to Grow Carbon Markets, are strengthening trust. Further convergence is anticipated in 2026 with updated standards from SBTi, ISO, and the Greenhouse Gas Protocol.

A coalition of 10 nations, including the UK, France, and Canada, responded to the Science Based Targets initiative (SBTi) consultation on its Corporate Net-Zero Standard version 2 on 11 December 2025. The Coalition to Grow Carbon Markets urged SBTi to draw on its 'Shared Principles' to ensure the standard aligns with broader private sector carbon credit use. The Shared Principles, launched at COP30, aim to provide clarity for companies to increase voluntary demand for carbon credits alongside deep decarbonisation and make credible claims. This intervention seeks to foster international consistency and incentivise high-integrity demand within the voluntary carbon market.

The Integrity Council for the Voluntary Carbon Market (ICVCM) confirmed Puro.Earth's version 4.2 carbon crediting programme as CCP-Eligible on 11 December 2025. This makes Puro.Earth the eighth programme to achieve CCP-Eligible status, validating its governance, transparency, and verification against rigorous Core Carbon Principles criteria. The approval means Puro.Earth's specific carbon removal methodologies, which focus on biochar, carbonated materials, and geologically stored carbon, can now be assessed for CCP-Approval. Only credits issued using Puro.Earth's version 4.2 standard and CCP-Approved methodologies will be eligible for the CCP-label. Version 4.2 incorporates strengthened provisions, including enhanced stakeholder engagement and safeguards, developed to meet ICVCM requirements.

The Integrity Council for the Voluntary Carbon Market (ICVCM) announced the International Carbon Reduction and Offsetting Alliance (ICROA) is 'passing the baton' on VCM integrity leadership. ICROA's code of best practice previously established foundational standards for governance and operations within the market. The ICVCM has collaborated with ICROA since 2021, developing frameworks for market integrity and scale. The ICVCM's Core Carbon Principles (CCPs) and Assessment Framework now set the independent global threshold for high-integrity carbon credits. ICVCM will assess carbon crediting programmes and their methodologies to ensure they meet these new standards.

The Voluntary Carbon Markets Integrity Initiative (VCMI) launched a 'Best Practice Guide for High-Integrity Carbon Projects in the Brazilian Amazon' on 20 November 2025 during COP30. Developed with the state governments of Acre and Rondônia, the guide establishes a benchmark for project development tailored to the region's context. It outlines approaches for ensuring credibility and sustainability, covering aspects such as land rights, Free, Prior, and Informed Consent (FPIC), benefit distribution, and engagement with Brazil's Emissions Trading System (SBCE). The initiative seeks to attract higher prices and finance for forest-based communities to help address the estimated $7 billion annual funding gap for Amazon conservation.

Eleven governments endorsed the Coalition to Grow Carbon Markets' Shared Principles for Growing High-Integrity Use of Carbon Credits at COP30 on 17 November 2025. Canada, France, Kenya, Luxembourg, New Zealand, Panama, Peru, Singapore, Switzerland, the UK, and Zambia committed to exploring supportive policies aligned with the framework. Germany, Indonesia, the Netherlands, and South Africa also welcomed the initiative. These principles, issued on 4 November 2025, aim to unlock capital for development and provide clarity for companies investing in carbon credits as part of credible decarbonisation plans. This establishes international alignment to mobilise climate finance and achieve global climate goals.

The Coalition to Grow Carbon Markets, backed by the governments of France, Kenya, Singapore, the UK, and Panama, launched a new framework for corporate use of high-integrity carbon credits on 4 November 2025. Issued at the COP30 Business and Finance Forum in São Paulo, Brazil, the 'Shared Principles for Growing High-Integrity Use of Carbon Credits by Companies and Other Buyers' aims to boost corporate demand and provide a consistent cross-country framework. These principles outline six pillars, including using credits in addition to direct decarbonisation, ensuring rigorous quality standards, and maintaining transparent reporting. The initiative seeks to strengthen incentives for businesses to invest in high-integrity credits within both voluntary and Article 6 markets.

The Climate Vulnerable Forum (CVF-V20) and the Voluntary Carbon Markets Integrity Initiative (VCMI) announced on 18 October 2025 an expansion of their Carbon Finance Program. This initiative aims to unlock an additional US$20 billion in annual financing for V20 countries by enabling them to host high-integrity carbon projects through voluntary carbon markets. Launched in June 2024, the programme supports member nations in financing their Climate Prosperity Plans, with current policy guidance provided in countries including Benin and Kenya. The expanded programme will reach more countries, offer broader technical support, and provide policy advice through 2028, aiming to address the climate finance gap.

VCMI and the Amazon Investor Coalition have partnered with the Brazilian states of Acre and Rondônia to produce a Best Practices Guide for nature-based carbon projects in the Amazon. The guide, supported by Climate Focus and LACLIMA, aims to inform state governments' engagement with private sector actors on high-integrity carbon markets. Due by COP30, it will equip project developers, investors, and buyers with clear guidance on environmental and social safeguards, land tenure, and benefit-sharing. This initiative seeks to address challenges like unclear land rights and community safeguard concerns, enabling sub-national governments to leverage carbon markets for climate and sustainable development goals.

The Governments of Kenya, Singapore, and the United Kingdom have established The Coalition to Grow Carbon Markets, joined by founding members France and Panama, to strengthen voluntary demand for carbon credits. By COP30, the coalition plans to issue shared principles on the voluntary use of high-integrity carbon credits by businesses. This initiative aims to provide jurisdictional consistency and clarity for companies on integrating credits into decarbonisation plans, addressing business calls for clear governmental guidance. The Coalition seeks to unlock climate finance for Emerging Markets and Developing Economies, with projections suggesting the market could reach USD$250 billion by 2050. It will work with partners including the International Chamber of Commerce, the World Business Council for Sustainable Development, and the Integrity Council for the Voluntary Carbon Market.