Monday, 03 February 2025.
Lots of news in the last few days. As part of the meetings in Davos, the World Bank discussed the global carbon pricing system. The United Kingdom and Switzerland updated their NDCs, one country making use of Article 6 and the other not. UNIDROIT advances on the legal nature of carbon credits. And while Singapore makes an interesting suggestion regarding carbon credits, several other Asian countries speed up their carbon markets: Indonesia, Vietnam and Thailand. In the United States, an important State proposes a new legislation on climate disclosure, while in Brazil, discussions on REDD+ and a new way of carrying out environmental compensation. And much more 🔔.
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🔔 Here are the clippings of the week.
World Bank discusses global carbon pricing system
According to the World Bank in a recent article, although carbon pricing is an effective tool, it currently covers only 24% of global emissions. The article highlights the need for greater involvement of the private sector, in addition to analyzing unilateral and multilateral approaches and how to harmonize them internationally. Read here “How to build a multilateral carbon pricing system: Balancing vision and reality”.
United Kingdom and Switzerland update their NDCs
Among other commitments, the United Kingdom has pledged to reduce its emissions by at least 68% by 2030 and achieve net-zero emissions by 2050. Despite stating “The UK does not currently intend to use cooperative approaches that involve the use of internationally transferred mitigation outcomes (ITMOs) under Article 6 of the Paris Agreement towards its NDC.” See the 74-page document here.
Switzerland, on the other hand, updated its NDC submitted about 2 months ago. Unlike the United Kingdom, it states that it “will partly use internationally transferred mitigation outcomes (ITMOs) from cooperation under Article 6” and that the country has already signed bilateral agreements under Article 6.2 of the Paris Agreement with Peru, Ghana, Senegal, Georgia, Vanuatu, Dominica, Thailand, Ukraine, Morocco, Malawi, Uruguay, Chile, and Tunisia. See the updated Swiss NDC here.
UNIDROIT advances on the legal nature of carbon credits
The Fourth Session of the Working Group on the Legal Nature of Carbon Credits took place at UNIDROIT headquarters in Rome from January 15 to 17, 2025. Topics discussed included: “registry, custody, secured transactions, some revised draft principles, insolvency, enforcement, private international law issues, and other topics such as tokenization and interoperability.” As previously anticipated, UNIDROIT proposes 12 principles to clarify the legal nature of carbon credits, aiming to ensure the integrity and efficiency of their voluntary markets. Click here for the 66-page Issues Paper (Doc. 2 rev).
Singapore suggests including other elements of nature in carbon credits
At the World Economic Forum in Davos, the President of Singapore highlighted the importance of integrating biodiversity and water into already established carbon credits. He proposed that this association could create more attractive funding sources for nature-based solutions. He added that despite the challenges of commodification and the complexity of quantifying biodiversity credits, integrating imperfect mechanisms can lead to improvements and overcome political challenges. Watch here.
Vietnam to begin piloting its domestic carbon market from June 2025
The Vietnamese government announced on January 27 the approval of a project to develop its carbon market. The goal is to officially operate the carbon market by 2029, as part of the country's efforts to reduce greenhouse gas emissions and achieve net-zero emissions by 2050. The Saigon Times reports.
Indonesia launches IDX Carbon exchange
On January 20, President Joko Widodo announced the creation of IDX Carbon, Indonesia's Carbon Trading Exchange, during a ceremony in Jakarta. The goal of IDX Carbon is to facilitate the country's climate targets and release capital to finance decarbonization. The president mentioned that the potential for carbon trading on the exchange is US$194 billion. See the press release.
Thailand begins structuring a new platform for carbon credits
On January 16, 2025, it was announced that Thailand will launch a new carbon credit market to revitalize trading. The Stock Exchange of Thailand (SET) will be responsible for operating the new platform, which aims to address low demand and low prices in the existing carbon credit market. The initiative is part of the country's broader efforts to strengthen its stock market and align with global carbon reduction efforts. Thai Times reports.
Brazil advances discussions on REDD+ carbon credits
On January 28 and 29, there was a meeting of the Technical Working Group (GTT) on Safeguards of the National REDD+ Commission (CONAREDD+) in Brasília. Presided over by the Ministry of Environment and Climate Change (MMA), during the meeting, guidelines on public consultations for the implementation of REDD+ programs were debated. Follow here.
United States has new proposal on climate disclosures for New York
Senate Bill S3456, known as the Climate Corporate Data Accountability Act, was introduced in the state of New York. This proposed law requires certain business entities within the state to annually disclose their greenhouse gas emissions, including scope 1, scope 2, and scope 3. Additionally, the law establishes the Climate Accountability and Emissions Disclosure Fund. The intention of the legislation is to increase transparency and corporate accountability regarding greenhouse gas emissions, helping to combat climate change.
Brazil, São Paulo State introduces new form of environmental compensation
State Decree No. 68.842/2024 of the state of São Paulo authorizes the State Treasury to receive, by donation, properties located in public state conservation units pending land regularization. The decree aims to compensate for the absence of Legal Reserve (LR), the suppression of native vegetation, or intervention in Permanent Preservation Areas (APP) in environmental licensing processes. The donated properties will be allocated to the Secretariat of Environment, Infrastructure, and Logistics. Read more here.
Brazil launches the Energy Transition Acceleration Program
Published on January 23, 2025, Law No. 15.103/2025 addresses the financing of sustainable projects and the promotion of low-carbon energy generation.
Brazil, ECCON Soluções Ambientais has a new partner
A few days ago, it was announced that Marina Monné de Oliveira became the newest partner of ECCON, a company where she has been leading feasibility analyses for generating carbon credits and coordinating decarbonization projects and payments for environmental services. Founded in 2014 and led by Yuri Marinho, ECCON operates in the environmental business and consulting market, developing carbon credit generation projects, environmental regularization, environmental auditing, environmental licensing, and other environmental solutions for clients both in Brazil and internationally.
