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Article 6 in Action: 86 Bilateral Agreements Transforming Climate Policy As we hit August 2024, the landscape of international climate efforts are picking up pace: 86 bilateral agreements have been formed under Article 6, covering 55 countries. An MoU was signed just this week between Sweden and Zambia. 🔗 Notable agreements include: 🔸 Ghana and Switzerland: Working together on sustainable rice cultivation and integrated waste recycling. 🔸 Thailand and Switzerland: Pioneering the Bangkok E-Bus Program, which achieved the first recognized transfer of carbon credits. 🔸 Japan and Vietnam: Collaborating on renewable energy initiatives through the Joint Crediting Mechanism (JCM). 🔸 Peru and Switzerland: Advancing reforestation and forest management for both biodiversity and carbon capture. These agreements are a promising start, but there's still a long way to go. The legislation isn’t complete, and we’re still only seeing a handful of developed nations actually buying. Check out the S&P flow diagram below showing Article 6.2 agreements, MoUs and letters of intent. You’ll notice it’s really just a handful of developed countries buying from a range of primarily developing nations. So, where are the rest of the developed countries? Broader participation is crucial. We need more engagement to scale these efforts and unlock the full potential of the global carbon market. The clock's ticking, and more action is needed. Eyes are on this November’s COP in Baku for further progress on implementing legislation. Terra Natural Capital provides the financial bridge for high-quality carbon projects, reducing risks for corporate buyers and empowering developers. See how Terra can support your sustainability goals. Get in touch when you're ready to explore. #carbonmarkets #carbonoffsetting #carboncredits #voluntarycarbonmarkets

🔑 3 key dynamics to understand about the voluntary carbon market today The voluntary carbon market is rapidly evolving. Here are 3 key dynamics you need to know: 1️⃣ Bifurcated Market Landscape The market is split. Low-quality, low-value credits dominate market volume but are losing liquidity fast. High-quality credits are gaining traction as buyers demand better standards to avoid reputational risks. This shift highlights the increasing importance of value over price. Buyers want credibility. 2️⃣ The “Luxury” Purchase Decision Buying carbon credits can be like buying luxury goods. It’s about brand alignment, not just price. Credibility is key. As the US DOE Secretary said, “Credibility, literally is the commodity.” Companies often make one strategic purchase per year based on their annual emissions. It's a brand investment. 3️⃣ Supply and Demand Dynamics Low-quality market: oversupplied and responsive to price changes. These credits are cheap and come online quickly but are increasingly at risk of becoming stranded assets. High-quality market: drastically undersupplied, with long-lead times. Big tech and financial services firms are locking in long-term commitments, which require significant investment and lead times. The premium market has unique opportunities. Strategic positioning in the high-quality market is key. Leverage niche market expertise. Utilise innovative financial solutions. #CarbonMarkets #Sustainability #ClimateAction #NetZero #CarbonCredits

🌞 July 2024 Carbon Market Wrap-Up: Innovations and Debates Heat Up! 🌞 July was buzzing with activity in the voluntary carbon markets, despite the debates and controversies. Here's a breakdown of the key developments: 🏛️ Market Guidance and Standards: - Microsoft set high standards with its annual CDR report. - Science Based Targets initiative postponed its Scope 3 emissions guidance, highlighting the complexity of carbon credit applications. - The UN hinted at its upcoming report on application carbon markets and emissions reduction. 🗞️ Debate Spotlight: Despite the noise, the underlying message was clear: urgent action and robust carbon finance are essential to drive nature restoration and carbon removal. - A noteworthy article in Nature scrutinized SBTi’s stance. - Open letters from various organizations sparked further discussion. - Air New Zealand made headlines by revising its 2030 emissions target, underscoring the challenges of meeting interim climate goals. 🤝 Transactions and Pioneering Moves: - Microsoft made a massive forward purchase from Direct Air Capture with 1Point5. - The Paris Olympics set a new standard with ambitious pre-Games emission targets, partnering on projects in Vietnam, Rwanda, and Senegal. - Numerous corporates are gearing up for the H2 buying season with large tenders for carbon removals. 🌐 National Agreements Ramp Up: - U.S. and Canada vowed to integrate their carbon markets. - Japan and Vietnam inked a deal under the Joint Crediting Mechanism to meet Japan’s emission reduction targets. - The Global Arrangement on Sustainable Steel and Aluminum progressed, aiming to curb carbon intensity in traded goods. 🔭 Market Innovations: - Kita and Tokio Marine Group introduced political risk insurance for carbon credits. - Swiss Re launched a new insurance product guaranteeing the delivery of nature-based credits. This month underscored the dynamic nature of the carbon markets, highlighting both the challenges and the innovative strides being made. Let's keep the conversation going as we push for meaningful and impactful solutions. Below is our market wrap-up graph showing cumulative carbon credit retirements YTD vs. the same period last year. 👇 Retirements hold steady on last year into the seasonally-slower summer period, but, anecdotally, we see continued significant forward purchases and corporate preparations for the seasonally-higher Q4 buying period. 👀 Keep an eye out for more updates and insights into the evolving landscape of carbon markets and natural capital investing.

🌍 What Are Carbon Advanced Market Commitments (AMCs)? 🌍 If you've been following the latest trends in carbon markets, you might have come across the term "Advanced Market Commitments" or AMCs. But what exactly are they, and why are they important? Let’s dive in! Understanding AMCs: Advanced Market Commitments are public commitments by buyers to purchase carbon credits at a future date. These commitments are made to stimulate market demand and incentivize the development of high-quality carbon reduction or removal projects. Why Are They Valuable? ⚖️ Market Stability: AMCs provide a strong demand signal, which helps project developers secure funding and scale their operations. 🔬 Innovation: By providing confidence around a future market, AMCs encourage investment in innovative carbon removal technologies. 🏞️ Priced to deliver impact: By clearly stating a focus on project quality and a willingness to pay the true price of delivering impact, AMCs drive project design. Think native species, community benefits, permanence and dynamic monitoring. How Can Companies Engage with AMCs? 1. Join Existing Coalitions: Companies can join established initiatives like the LEAF Coalition, Frontier, or the Symbiosis Coalition to pool resources and commitments. 2. Direct Participation: Companies can make direct commitments to purchase future carbon credits, supporting specific projects or technologies. 3. Collaboration: Partner with other organizations to form new AMCs, tailored to specific carbon reduction goals or regions. Current Leaders in Carbon AMCs: 🔸 LEAF Coalition: Launched in 2021 by Emergent, has over $1 billion in purchase commitments from 25+ companies for jurisdictional avoided deforestation credits. 🔸 Frontier: Started by Stripe in 2022, pooling $1 billion+ for durable carbon dioxide removal by 2030, includes 19 members, some offering syndicate options. 🔸 Symbiosis Coalition: Launched in 2023, pledging to purchase 20 million nature-based carbon removal credits by 2030 with four founding members. Interestingly, Salesforce is the only company to join all three carbon AMCs, demonstrating its leadership in climate action. For more insights on this, check out this post by Margaret Morales: https://lnkd.in/d_kr2xMS #CarbonMarkets #Sustainability #ClimateAction #CarbonCredits #AMC #GreenEconomy