2023 Trends And 2022 Status Of Carbon Credits, (jurisdictional) REDD+ And ESG

Last Thursday January 26 occurred three webinars of significance to carbon credit markets:

Verra, “Carbon Market Policy: The Emergence of Jurisdictional REDD+ & Predictions for 2023”
MSCI, “ESG and Climate Trends to Watch for 2023”
Sylvera, “How REDD Supports Corporate Climate Goals”

Verra’s CEO David Antonioli explained on their role and evolution in the REDD+ markets, further elaborating on the recent article from The Guardian. Verra’s registry’s was highlighted and at the Q&A session at the end, he mentioned the need for capacity building of more (jurisdictional) auditors for REDD+.

MSCI presented another annual ESG trends research, elaborating on how challenges and opportunities are shaping both the investment environment and companies, across a variety of angles: from carbon credit funds to insured emissions, and from scrutiny of net-zero targets to decarbonizing industrial real estate, regulation, supply chain and issues affecting everyday lives.

Then Sylvera’s webinar, explaning the emergence of “jurisdictional REDD+”: when REDD+ activities occur under a (sub)national REDD+ strategy and accounting, such as baselining and deforestation monitoring, are done at a national scale.

This means the emergence of new independent standards and national frameworks.

Sylvera also divulged a very thorough report “The State of Carbon Credits 2022. Volume 1. Spotlight on REDD+”.

This following part was selected from “Country Insights, Brazil”

“Brazil has the highest number of REDD+ projects in the world – 23% of all REDD+ with 19 projects that have issued credits.

Brazil has the third highest number of issued credits in the world – 59,272,203 credits – which is 15% of credits on VCMs, and averages to 3,119,590 credits per project in Brazil.

The governing structure of Brazil is decentralized across a number of states with varying degrees of legislation impacting forest protection. The majority of Brazilian projects take place on private land, typically belonging to larga landowners engaged in other commercial activities, unlike Asian Pacific projects, which typically exist within a centralized governing system and on state-owned land. The decentralized governance and widespread privatisation of land in Brazil creates favourable conditions for continued market growth and crediting volumes.”

Sylvera’s has a 3-tier (+ provisional) rating system to assess carbon credit quality. Their customers are often large Institutions who have made net zero commitments and who are the biggest buyers of carbon credits in the market.

Click on the image below to access the report, upon registry at Sylvera’s portal.

Lastly, click here for a recent Reuters article entitled “Voluntary carbon markets set to become at least five times bigger by 2030 – Shell”.