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Verra, the world’s biggest certifier of carbon credits, plans to review projects faster than it has in the past despite letting a quarter of its workforce go after losing $9 million last year.

Introduced this week, Verra’s new “risk-based approach” uses algorithms and staff judgement to categorise carbon credit projects by how risky they are based on factors like size and complexity. Projects deemed high-risk are now checked more thoroughly than low-risk ones.

While Verra’s new CEO Mandy Rambharos said recently that “faster does not equal to compromise on integrity”, carbon market experts have raised concerns that the quality of verification could suffer and more bad projects could get the green light.

Verra is also implementing as “digitalisation” initiative, which it says will help “enhance transparency and efficiency, streamline processes and scale up its operations”.

Digitally-submitted documents about a project will be fed into a “built-in engine” that “performs all the necessary calculations”, including working out how much greenhouse gas will be kept out of the atmosphere as a result of the project’s activities, according to Verra.

Losses fuel cuts

Over the last few years, Verra has been repeatedly accused in academic studies and media reports of approving carbon offsets that exaggerate the climate benefits they bring by reducing or avoiding the release of planet-heating carbon dioxide and methane.

Its long-time CEO David Antonioli stepped down in March 2023 amid falling revenues – which Verra gets mostly from taking a cut on the sale of credits – and rising costs. The carbon credit registry made a loss of $9.3 million last year.

Rambharos, a former South African climate negotiator who joined Verra from the Environmental Defense Fund, told a webinar for partners last week that the job cuts had been a very “difficult decision” in a “gruelling week”.

Justin Wheler, who heads the program management team that runs Verra’s registry and is responsible for ensuring the quality of credits, told the webinar that his department had lost staff as “no department was spared from that”.

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In response to questions asking how projects could be processed faster with fewer staff, he said the new risk-based approach would “compensate for the reduction in staff capacity” as it “clearly identifies where high levels of scrutiny are needed and allows us to focus our resources in those areas”.

Wheler added that the criteria Verra uses to judge project risk would not be released, comparing that decision to police not telling the public where speed cameras are. But he said the size and complexity would be two of the factors guiding “review intensity”.

Past mistakes

There are a number of known cases of Verra approving carbon credit projects only to later place them under review after media reports or whistleblowers raised doubts over their integrity.

Last August, the carbon credit standard revoked 37 rice cultivation schemes after it had identified a string of “serious failures” during a 17-month review triggered by complaints over the production of credits in excess of actual emission reductions.

Other projects have been suspended by Verra after campaigners raised concerns about Indigenous peoples’ lack of consent for a project in Cambodia, and sexual abuse and harassment in a project in Kenya. Both activities were restarted after Verra had reviewed them.

Just last week, Verra cancelled 5 million credits generated from cleaner cookstoves after a former executive at the project developer – who was also a former member of Verra’s board – was accused of fraud by US law enforcement over the alleged falsification of project data. He denies all wrongdoing.

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Trishant Dev, carbon markets researcher at the Delhi-based Centre for Science and Environment, said Verra’s new risk-based approach “warrants careful consideration […] given recent instances of Verra placing projects under review after discrepancies are exposed publicly”.

Simon Counsell is an independent consultant and researcher who wrote a report criticising a Verra-approved carbon offset project in Kenya. He told Climate Home that given the criticism Verra has received, it is “surprising that they should think there are ‘low or medium risk’ new projects that warrant less scrutiny, especially when inadequate oversight is precisely what has led to Verra’s current financial situation”.

“‘Streamlining’ its processes might get new projects online quicker, and thus bring in more registry fees, but it won’t solve its credibility crisis,” he said, adding that Verra is branching out into “new and even more controversial areas” such as biodiversity and nature crediting. “It seems that ‘more’, rather than ‘better’, is still the organisation’s main watchword,” he said.

Joe Eisen, executive director of Rainforest Foundation UK, said it was difficult to see how the reforms “won’t further undermine the credibility of the system”.

“We have a situation where there are far more projects in the pipeline, less people to ensure the quality of the projects and greater commercial pressures to issue credits from them,” he added. “Not an ideal recipe for high-integrity forest protection.”

Carbon players’ support

A spokesperson for Verra pushed back against criticism, however, telling Climate Home the new approach acknowledges some of the different risk factors from different types of projects. For example, he said projects that rely on gas measurements from a meter are different to large land-based projects, where monitoring is more difficult.

The spokesperson added that the risk-based approach had been in development for “some time” and would “help mitigate the impact of the reduction in [staff] forces, but that is not the purpose of it”. The goal, he said, is “to focus the reviews where the risks are to reduce wasted time and increase scrutiny on the key issues”.

Sustainability consultant and carbon offset developer Chris Hocknell told Climate Home the changes were “desperately needed as delays in response and review times are a significant challenge for projects”.

He said the digitalisation is “a valuable enhancement” which “upgraded a surprisingly analogue system into digital, which is merely bringing things up to date with modern business”.

This will allow project developers to concentrate on “outcomes rather than admin”, he added.

But Hocknell said he feared that cuts to staff could slow down project review times – and that the decision to keep the risk-based approach’s criteria undisclosed “raises concerns, as developers lack insight into the specific standards or thresholds being applied”.

Clean-up job

Following the spate of critical media articles, there are several high-profile efforts underway to improve the integrity of the voluntary carbon market.

The Integrity Council for the Voluntary Carbon Market (ICVCM) gives a stamp of approval called the Core Carbon Principles to categories of projects regarded as high-integrity.

In August, it rejected existing carbon offset methodologies that are based on building renewable energy capacity. The body said those standards were not strict enough on judging whether the projects needed the funding generated by selling carbon offsets in order to go ahead – a key threshold known as “additionality”.

Another organisation called the Voluntary Carbon Markets Integrity Initiative (VCMI) aims to ensure that the buyers of carbon offsets only make accurate claims about their use and are transparent about the offsets they buy.

Felipe de Leon Denegri, a former carbon markets negotiator for the Costa Rican government, told Climate Home he had high hopes that Verra would play its part in this market-wide integrity drive. Having negotiated with Rambharos when she was with the South African government, he said he could not think of “anyone I’d trust more to try to revitalise Verra”.

(Reporting by Joe Lo; editing by Matteo Civillini and Megan Rowling)

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Climate Change

Coles, Woolworths failing on deforestation commitments 

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SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.

Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:

“These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.

“Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.

“As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”

Coles, Woolworths failing on deforestation commitments 

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Climate Change

New Zealand moves to protect business with law curtailing climate litigation

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New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

    Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

    Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

    In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

    Corporate lobbying in the shadows

    Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

    “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

    The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

    The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

    Green groups fail to stop bill

    The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

    But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

    A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

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    Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

    But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

    The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

    Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

    Copycat legislation on the rise

    New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

    In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

    The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

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    Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

    “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

    The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

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    Climate Change

    Indonesia’s nickel production cuts are not enough to create a sustainable industry 

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    Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS. 

    Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.

    Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.

    The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.

    The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.

    Restricting Indonesia’s nickel output

    Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.

    Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.

      Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.

      Stronger environmental enforcement

      Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.

      This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.

      The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

      A coastal village is wedged between the sea and a large nickel mine in Indonesia
      The fishing villages of Tapunggaya in Sulawesi, Indonesia, are squeezed between the sea and an expanding nickel mine (Photo by Garry Lotulung/NurPhoto)

      The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.

      In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.

      None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.

      Unequal benefits

      For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.

      Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.

        In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.

        Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.

        The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.

        None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.

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