13th CCM Week 2025. Carbon credits in focus: legal nature, methodologies in India, insurers in Brazil and advocacy by IETA. Events, opportunities, public consultations, COP30 and $125 billion.
- Art Dam
- 18 minutes ago
- 6 min read
Monday, 07 April 2025.
Petersberg Climate Dialogue and COP30 in the Amazon; $125 billion being mobilized via the Tropical Forest Forever Facility; Legal nature of carbon credits; IETA advocates for carbon credits in the European Union; India advances with 8 methodologies for carbon credits; Brazilian insurers contest the requirement of technical reserve allocation for carbon credit purchases; Events on Voluntary Carbon Market in Review, Harnessing Carbon Markets and Carbon Pricing for Smarter Development and Stronger Economies, and West Africa Carbon Market Hub, as well as opportunities like sustainability reports generated by artificial intelligence from Nasdaq and public consultations by Verra on the Scope 3 Standard and by Brazil on sectoral and thematic plans for climate change adaptation.
But before that, did you know that our articles are also available in video and audio formats? Click here for YouTube , here for Spotify and give them a try.
WORLD
Petersberg Climate Dialogue: Paving the Way for COP30 in the Amazon.
Held in March 2025, in Berlin, Germany, the latest Petersberg Climate Dialogue focused on preparation for COP30, to be hosted in Belém, Brazil. Representatives from around 40 countries discussed strategies to strengthen climate diplomacy and promote concrete actions. Topics included the importance of ambitious national climate plans (NDCs), protecting the Amazon as a vital ecosystem, and the need for international cooperation to tackle climate challenges.
The Petersberg Climate Dialogue is an annual high-level meeting that brings together government representatives, international organizations, and experts to address global climate issues. Created in 2010 by Germany, it serves as a platform to foster international cooperation and prepare for the United Nations Climate Conferences (COPs).
Read more about the latest meeting here.
$125 Billion: Brazil's Goal Through the Tropical Forest Forever Facility.
Brazil made significant progress in establishing the Tropical Forest Forever Facility (TFFF) during meetings in London, held on March 10–11, 2025. Brazilian government representatives discussed the fund's structure with governments of tropical forest countries and global investors.
In essence, this is a global investment fund that rewards investors and channels part of the profits to countries preserving their tropical forests.
Similar to the U.S. Federal Deposit Insurance Corporation (FDIC) and Brazil's Credit Guarantee Fund (FGC), the TFFF combines public and private financing, with 20% governmental subsidies to attract private investments. It operates as a sustainable financial mechanism, offering moderate returns and security to investors.
Initially presented at COP28, the proposal aims to attract major investors such as pension funds and banks. Moreover, it is part of Brazil's Ecological Transformation Plan to promote a low-carbon economy and create high-quality jobs.
Click here for the recent press release from the Brazilian Government.
CARBON CREDITS
Draft Unidroit Principles: Update on the Legal Nature of Carbon Credits.
The fifth session of the UNIDROIT Working Group on the Legal Nature of Verified Carbon Credits took place in Rome, Italy, from April 2 to 4, 2025.
During the meeting, some members presented new topics, such as tokenization and interoperability. Additionally, the group reviewed and discussed the revised draft document on carbon credits, addressing topics like definitions, creation, transfer, cancellation, registration, custody, security, insolvency, and private international law.
The minutes and final documents of the fifth session are yet to be published, but the Draft Unidroit Principles can be read here—60 pages of essential content.
IETA Perspective on Carbon Credits in the EU Green Claims Directive.
The European Union's (EU) Green Claims Directive establishes new rules on how companies substantiate their environmental claims, including those involving carbon credits. As EU negotiations progress, the European Parliament is moving toward limiting the role of carbon credits in corporate claims.
In response, IETA advocates for clarity regarding the future use of emission reduction and removal credits to encourage responsible use in corporate environmental claims. Specifically, IETA emphasizes the need for:
Clear guidelines on how companies can report the use of carbon credits.
Broad permission to use emission reduction and removal credits for compensation claims.
Eligibility of nature-based and technological removal credits.
Acceptance of Carbon Removals and Carbon Farming (CRCF) credits, as well as equivalent EU or international schemes.
Click here to read IETA's full position paper, a 3-page document.
India's Carbon Market Progress: 8 Official Methodologies Defined.
As previously reported, India aims to launch its first carbon market by 2026, focusing on regulating "carbon intensity"—emissions per unit of production—instead of total emissions. This approach will allow industries to grow while promoting efficiency and reducing environmental impact.
With compliance and voluntary mechanisms, the market will enable companies to trade carbon credits generated using national methodologies, eight of which have already been defined:
Grid-connected electricity generation from renewable sources
Hydrogen production from electrolysis of water
Energy efficiency and fuel switching measures for industrial facilities
Hydrogen production using methane extracted from biogas
Landfill methane recovery
Flaring or use of landfill gas
Methane recovery from livestock and manure management at households and small farms
Afforestation and reforestation of degraded mangrove habitats
Access the official portal here for detailed information and key references on carbon markets promoted by the Indian Government.
Brazil: Insurers Contest 0.5% Technical Reserve Requirement for Carbon Credits.
The National Confederation of General Insurance Companies (CNseg) has filed a motion with the Supreme Federal Court (STF) challenging a provision in Law 15,042/2024, which established the Brazilian Emission Trading System (SBCE).
Among the advances of the Law is Article 56, which requires insurers to allocate 0.5% of their technical reserves to the purchase of carbon credits.
Insurers argue that, as Brazil's carbon market is still underdeveloped and lacks liquidity, fulfilling such an obligation would be impossible. Another point raised is the potential conflict of laws. According to CNseg, the requirement contradicts Complementary Law 109/2021, which prohibits compulsory impositions on the assets securing the technical reserves of private pension entities.
In other words, CNseg asserts that this obligation is unconstitutional and detrimental to the sector, inflating carbon credit prices artificially.
While awaiting a ruling from the STF, the Confederation proposes alternatives, such as issuing green bonds, to finance sustainable projects without compromising the funds allocated for policyholder benefits and claims.
It is worth noting that during final discussions leading to the approval of Law 15,042/2024, this issue was one of the last items addressed: “A 12-month deadline for insurers to constitute technical reserves and provisions for investments in environmental assets was included.”
EVENTS
📍🖥️ April 15 | MSCI 1Q25 Voluntary Carbon Market in Review, online. Insights into the dynamics of the carbon market in the first quarter of 2025, including regulatory updates and trading activities. Registration and more details here.
📍🇪🇸 June 10–12 | I4C Innovate4Climate 2025 “Harnessing Carbon Markets and Carbon Pricing for Smarter Development and Stronger Economies”, Barceló Sevilla Renacimiento, Spain. Discussions on how carbon pricing and markets can mobilize investments and drive sustainable growth. Now featuring a new portal and sneak peek video online, as anticipated during the 12th week.
📍🇸🇳 May 28–30 | West Africa Carbon Market Hub, Dakar, Senegal. Organized by the West African Alliance on Carbon Markets and Climate Finance (WAA), B-PMI, and IETA, this regional initiative aims to promote public-private collaboration in carbon markets and discuss ways to unlock climate financing across West Africa. Click here to express interest by April 15, 2025.
OPPORTUNITIES
🖥️🤖 Limited time: Sustainability reports for your company using Nasdaq AI.
Creating sustainability reports for regulatory or voluntary disclosures can be time-consuming, especially with new and constantly changing standards. With AI-driven workflows, it's possible to draft reports aligned with CSRD or IFRS S2 with just a few clicks. For a limited time, Nasdaq offers AI-generated drafts based on public documents from your company. Nasdaq specialists will oversee the process in real-time, providing personalized guidance. Nasdaq is one of the largest stock exchanges globally, specializing in technology companies. With over 2,800 listed companies and more than 65% of Fortune 500 firms, Nasdaq ranks as the second-largest in market capitalization and can process up to 6 billion shares in a single day. More details here.
✏️🖥️ Until April 21, Verra's Scope 3 Standard Program in public consultation. This is the first public consultation on the preliminary documents of Verra’s Scope 3 Standard (S3S) Program. The program will include:
Auditable rules and requirements
Quantification methodologies
Registry
Third-party verification
Certification
Read more here. And 📍🖥️ on April 10, Verra will host a webinar regarding this initiative. Don’t miss it.
✏️🇧🇷 Until April 25, Brazilian sectoral and thematic adaptation plans to climate change in public consultation.
This initiative is part of the Climate Plan, which will guide the country’s climate policy until 2035. A total of 16 plans are undergoing public consultation, divided into two categories: sectoral plans, addressing specific economic areas, and thematic plans, covering broader and cross-cutting issues. More details here.
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