Latest news with #carbonmarkets
Arab News
6 days ago
- Business
- Arab News
Pakistan eyes carbon market partnership with ADB to advance climate goals
ISLAMABAD: Pakistan's Climate Change Minister Dr. Musadik Malik on Thursday met with a high-level Asian Development Bank (ADB) delegation to explore potential collaboration on carbon markets as part of the country's evolving climate strategy, said in an official statement. The visiting team was led by Toru Kubo, ADB's Senior Director for Climate Change and Sustainable Development. The discussions focused on leveraging carbon markets to reduce greenhouse gas emissions and attract new streams of climate finance for sustainable development. Carbon markets are trading systems that allow countries, companies or organizations to buy and sell carbon credits or permits representing the right to emit a specific amount of carbon dioxide. These markets create financial incentives for reducing emissions and investing in greener alternatives. 'Both sides agreed to formulate a comprehensive, mutually aligned climate change strategy, with a specific focus on carbon credit mobilization, climate innovation and outcomes-based project implementation,' the climate change ministry said in a statement. The two sides also explored ways for Pakistan to strategically align its carbon finance agenda with the Sustainable Development Goals, aiming to turn climate action into a driver of economic growth, it added. On the occasion, Malik assured the ADB of full support in the strategy formulation, emphasizing that it should remain 'impact-driven, transparent and results-oriented.' Kubo highlighted ADB's support for developing member countries, including Pakistan, by enhancing their carbon finance capabilities through mobilizing investments in low-carbon technologies, enabling them to access and benefit from global carbon markets. The ministry said the meeting showed that climate action is now seen as a way to boost the economy, not just an environmental measure, with more countries paying attention to carbon markets. Pakistan unveiled the country's first National Carbon Market Policy in November 2024, saying that the government wanted to attract investments in green initiatives and transition toward a low-carbon economy. According to the Global Climate Risk Index, Pakistan is ranked as the fifth most vulnerable country to climate change. In 2022, devastating floods claimed about 1,700 lives and affected more than 33 million people, causing economic losses exceeding $30 billion. Although international donors pledged over $9 billion to support Pakistan's flood recovery, officials report that only a small portion of the promised funds were received by the country.
Reuters
6 days ago
- Business
- Reuters
African Development Bank to launch carbon credits support facility
NAIROBI, May 29 (Reuters) - The African Development Bank will launch a carbon markets support facility for the continent, senior bank officials said on Thursday, to unlock finance for a region increasingly impacted by climate change-linked droughts and storms. The Africa Carbon Support Facility, which is still at the design stage, will have two components, said Africa's top multilateral development lender, which also on Thursday said it had elected Former Mauritanian Finance Minister Sidi Ould Tah as president. The first component will help governments develop policies and regulations governing carbon trading, while the second will focus on boosting the supply and demand for credits as well as the key market infrastructure needed to increase their use. "Through this, we envision a future where carbon credits can become a tradable commodity on Africa's stock exchanges," Anthony Nyong, AfDB's director for climate change and green growth, told a session of the bank's annual meeting in Abidjan. Carbon credits are created through projects such as planting trees or putting up wind farms in poorer countries that receive one credit for every metric ton in emissions that they reduce or suck out of the atmosphere. Countries and companies can buy those credits to help reach their climate goals. Most of Africa's carbon credits, which are mainly generated from forestry, land use and farming, are currently sold on the voluntary markets, he said, but embedding them in stock exchanges would boost their prices. Africa's 54 countries have been among those hardest hit by climate change despite releasing a tiny share of polluting emissions, compared with the industrialised world. It has suffered from a series of climate catastrophes in recent years, including tropical storms that hit Indian Ocean island states such as Madagascar and the Southern Africa coastline, and severe droughts in the Horn of Africa. The continent receives just 1% of annual global climate finance according to government officials on the continent. "Carbon market development is an imperative for the continent," added Kevin Kariuki, the AfDB's vice president for power, energy, climate change and green growth. The initiative will also help to boost earnings for carbon credits generated from the continent, by ensuring they are sold on compliance offset markets where prices could be 10 times higher than on voluntary offset markets, Nyong said.
Entrepreneur
25-05-2025
- Business
- Entrepreneur
The Climate Warrior
Varaha leverages carbon markets and climate-smart agriculture to help smallholder farmers reduce emissions, improve soil health, and earn income through nature-based solutions across India, Nepal, Bangladesh, and Kenya. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Working closely with Indian farmers at Bayer and Monsanto, Ankita Garg saw their daily struggles—climate shocks, small landholdings, and limited resources—unlike the mechanized, well-supported farms in the US and Europe. This disparity ignited her mission to co-found Varaha in 2022, leveraging carbon markets and climate-smart agriculture to transform sustainability into economic opportunity for smallholder farmers. "Varaha addresses the pressing issues of climate change and food security by reducing agricultural emissions and improving soil health through nature-based solutions,"said Ankita Garg, Co-founder and COO at Varaha. "With the voluntary carbon market projected to exceed USD 100 billion by 2030, Varaha's target market across its operating geographies is estimated at USD 60 billion, offering significant growth potential." Early-stage investors Omnivore and Better Capital were among the first to back Varaha's mission, supporting its seed round. "Their belief in our vision set the foundation for tackling climate change and food security issues," shared Ankita. Since its inception, Varaha has raised USD 13 million in funding from prominent investors such as RTP Global, Orios Venture Partners, Norinchukin Bank, Theia Ventures, Octave Wellbeing Economy Fund, and AgFunder. This financial backing has accelerated Varaha's expansion across India, Nepal, Bangladesh, and Kenya. Today, the startup claims to have onboarded over 100,000 farmers covering one million acres, sequestering over two million tons of carbon. "Being a female entrepreneur was just one challenge—navigating carbon markets meant overcoming skepticism, building scalable MRV systems, and ensuring scientific rigor while staying farmer-friendly," Ankita explained. Her background in biotechnology and corporate experience helped bridge the gap between science, execution, and farmer realities. Despite achieving milestones like securing Series A funding and partnering with Google, challenges remain. "Registry delays that slow credit issuance, affecting farmer payouts and project timelines, continue to be a hurdle," Ankita stated. Looking ahead, Varaha plans to expand its full-stack sustainable agriculture ecosystem, leveraging partnerships, IoT, and satellite technology. With access to over 10 million farmers and 20 million hectares through 100+ partners, it aims to scale its impact globally. Varaha also champions diversity, with 24% of its workforce being women and over 7,000 women empowered through its projects. Financially, the startup has seen exponential growth, with revenues reaching INR 21 crore in FY 2024-25, up from INR 5.8 crore in FY 2023-24 and INR 52 lakh in FY 2022-23. Under Ankita's leadership, Varaha is revolutionising climate-smart agriculture, making sustainability a viable economic pathway for farmers worldwide. Facts:
Reuters
23-05-2025
- Business
- Reuters
New framework issued for tackling Scope 3 emissions gap
May 23, 2025 - The Voluntary Carbon Markets Integrity Initiative (VCMI) has released the Scope 3 Action Code of Practice, which provides guidance to companies on best practices to reduce Scope 3 emissions. Scope 3 emissions, which are indirect greenhouse gas (GHG) emissions that occur in a company's value chain, can account for a significant portion of a company's GHG footprint and continue to grow rapidly on a global basis. The Scope 3 Action Code of Practice is designed to promote credible GHG mitigation by companies and participation in high-quality voluntary carbon markets to further efforts to meet global climate change goals. Many companies measure their GHG emissions by assessing them within three different scopes. Scope 1 emissions are direct emissions from sources owned or controlled by a company, such as emissions associated with the boiler or furnace in one of its corporate offices. Scope 2 emissions encompass indirect emissions from the company's purchase of electricity, steam, heat, or cooling. For example, Scope 2 emissions include the generation of electricity that is used in one of its corporate offices. Scope 3 emissions cover all sources that are not within the Scope 1 or Scope 2 boundaries. Scope 3 emissions are indirect GHG emissions that occur in a company's value chain that are not produced by the company itself and are the result of activities from assets not owned or controlled by the company. These emissions may arise from upstream sources, such as the company's suppliers, and sources downstream of the company's own operations, such as the company's customers and product use. Although some progress has been made toward reducing Scope 3 emissions, they have not been reduced at the speed or scale to meet overall global climate change goals. Developed through a multi-stakeholder public consultation and road-testing process and collaboration with various groups and forums, the VCMI's Scope 3 Action Code of Practice was designed to provide a practical tool for companies that are making progress toward their near-term Scope 1 and Scope 2 emission reduction targets but have faced difficulties or are behind on achieving their planned Scope 3 emissions reductions. It is intended to promote credible, net zero-aligned GHG mitigation by companies and participation in voluntary carbon markets. The Scope 3 Action Code of Practice requires companies to set science-aligned near-term emission reduction targets for Scope 3 emissions and calculate the gap between a company's most recently reported Scope 3 emissions and where the company needs to be on their path to decarbonization to stay consistent with near-term science-aligned targets in that year, i.e., the Scope 3 emissions gap. It permits companies to use high-quality carbon credits to close this gap, subject to adherence to certain requirements and limits. The Scope 3 Action Code of Practice requires companies to publicly disclose the following: •Their current Scope 3 emissions gap; •Measures already taken to enable Scope 3 emissions reduction and the results obtained; •The main current and anticipated barrier(s) and an explanation of how they impede progress to targets; •A list of measures to overcome remaining barriers; and •The expected timeframe and emissions reductions to close the emissions gap. In addition to these disclosures, the Scope 3 Action Code of Practice requires companies to retire high-quality carbon credits in an amount at least equal to their Scope 3 emissions gap. However, the Scope 3 emissions gap to be closed by high-quality carbon credits cannot be more than 25% of the company's total Scope 3 emissions trajectory. The Scope 3 Action Code of Practice lays out a four-step process that companies must follow. They are required to comply with the Foundational Criteria, which require public disclosure of an annual GHG emissions inventory and science-aligned near-term emission reduction targets consistent with reaching net-zero emissions no later than 2050. Companies are also required to demonstrate progress toward meeting a near-term emission reduction target and that their public policy advocacy supports the goals of the Paris Climate Accords. Companies must assess whether they meet the Scope 3 Action Code of Practice requirements, which include those listed above. They are also expected to demonstrate progress toward meeting their near-term Scope 1 and Scope 2 emissions reduction targets through certain public disclosures. One of two calculation approaches must be applied to determine the Scope 3 emissions gap: the year-on-year approach or the carbon budget approach. The year-on-year approach calculates the limit of the emissions gap each year a company aligns with the Scope 3 Action Code of Practice (i.e., the company must ensure that the Scope 3 emissions gap is less than 25% of the Scope 3 trajectory emissions in the applicable year and that the Scope 3 emissions gap is eliminated by 2040 at the latest). The carbon budget approach calculates the limit upfront for the company's near-term target implementation period. The Scope 3 Action Code of Practice requires companies to retire high-quality carbon credits to close their Scope 3 emissions gap, subject to the 25% limit. Until Jan. 1, 2026, interim options for carbon credit procurement are available, after which only credits labelled by the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCP) or Article 6.4 credits may be used. Companies are expected to transparently disclose information to demonstrate that the Foundation Criteria requirements and Scope 3 Action Code of Practice requirements have been met. They are also expected to transparently disclose key information related to the high-quality carbon credits used to comply with the Scope 3 Action Code of Practice guidance, including the quality and number of credits retired. The VCMI Scope 3 Action Code of Practice provides a helpful tool for companies to continue their efforts to reduce and mitigate their Scope 3 emissions and demonstrate their commitment to climate action. It supports global mitigation efforts by encouraging the use and retirement of high-quality carbon credits while companies continue to work toward achieving their decarbonization targets. Its support for the use of carbon credits to address Scope 3 emissions gaps deviates from the methodology of the Science Based Targets initiative (SBTi), which only permits the use of carbon credits to address residual emissions that remain after a company has achieved its long-term science-based target and cut emissions by more than 90%. Although the additional flexibility in addressing Scope 3 emissions may be welcomed by many companies, the difference in the rules and guidance has created some concern in the industry on the use and reliance on carbon credits to achieve emissions reduction targets. However, the industry may see enhancements to the Scope 3 target-setting framework in the future, with SBTi recently issuing a proposal that would permit companies to prioritize action on the value-chain activities that generate the most emissions and set separate targets for those sources. As companies continue to reduce and mitigate their Scope 3 emissions, they should ensure that they document their Scope 3 emissions and reduction plans and ensure that any carbon credits used and retired are high-quality credits. Pamela Wu is a regular contributing columnist on energy and decarbonization issues for Reuters Legal News and Westlaw Today.
Bloomberg
20-05-2025
- Business
- Bloomberg
Open Borders for Europe Carbon Trading in the Trump Era
Newsletter Energy Daily The deal linking UK and EU markets reinforces their commitment to net zero amid America's pivot. By Save Welcome to our guide to the commodities markets powering the global economy. Today, reporter Will Mathis analyzes the agreement between the UK and Europe to link carbon markets. Nearly nine years after the UK voted to leave the European Union, Britain is looking to move back into the single market — at least when it comes to carbon emissions and electricity.
