Connect with us

Published

on

Amazon's $20B Carbon Credit Boom? Brazil’s REDD+ Faces Integrity and Demand Test

A new analysis of jurisdictional REDD+ (JREDD+) in Brazil’s Amazon reveals a big chance. The potential credit sales could reach $10–$20 billion this decade. However, the market faces delays, integrity issues, and a drop in voluntary demand.

The report from the Earth Innovation Institute (EII) outlines the numbers and assumptions. It also offers a roadmap connecting carbon credit sales to real forest results and social safeguards.

The $20B Amazon Question: EII’s JREDD+ Forecast

The Amazon remains a vital carbon reservoir, holding approximately 56.8 billion metric tons of carbon above ground. Brazil alone contains over 32 billion metric tons of this total. This carbon stock equates to more than one and a half times global annual CO₂ emissions in 2023.

EII’s Amazon Forest Climate Solution (AFCS) expects Amazon emissions from deforestation, fire, and logging to drop by 90% by 2030 from a 2018–2022 baseline. Then, they aim for a 95% reduction by 2040 and a 98% cut by 2050.

Amazon net emissions
Source: EII Report

Brazil’s Amazon states could issue around 1.05 billion TREES standard credits. This would be for reductions achieved from 2023 to 2030. At $10–$20 per credit, that equals $10–$20 billion in potential revenue.

Potential revenue (USD) from the sale of JREDD+ credits
Source: EII Report

Timing matters. EII notes it typically takes two to three years to verify, issue, and sell credits. The four most advanced states—Acre, Mato Grosso, Pará, and Tocantins—might sell around 100 million credits in 2026. This could bring in about $1 billion at $10 per ton. That figure is roughly comparable to the $1.4 billion donated to the Amazon Fund since 2008.

A state-by-state table shows around 1,048.8 MtCO₂e in potential credits by 2030. This could bring in about $10.49 billion at $10 per ton. Pará leads with 348.5 Mt and $3.49 billion, followed by Mato Grosso with 200.1 Mt and $2.00 billion.

Potential jurisdictional REDD+ credits Amazon
Source: EII Report

Why Billions Haven’t Flowed Yet

Analysts underscore the gap between early promises and actual transactions, while the EII report highlights these bottlenecks:

  • No Brazilian state issued credits by June 2025.
  • Only Pará and Tocantins signed forward Emissions Reduction Purchase Agreements (ERPAs).
  • Acre and Mato Grosso are advancing through pay-for-performance (non-credit) mechanisms.

Meanwhile, the voluntary carbon market retrenched in 2023–2024. Global transactions fell to about 84 MtCO₂e from a 516 MtCO₂e peak in 2021, and forest/land-use project volumes slid from about 227 MtCO₂e to about 37 MtCO₂e. This slump undermines demand just as Brazilian states prepare to sell large volumes.

carbon credit trading volume 2024

Put simply, the supply pipeline is maturing faster than demand. Integrity controversies around some project-level REDD+ credits have cooled buyers’ risk appetite. 

EII argues that jurisdictional programs, using conservative baselines and including leakage deductions, can tackle many concerns. They also have social safeguards under the TREES standard. However, these programs still need clear policies and buyer confidence to turn modeled volumes into cash.

What Makes JREDD+ More Credible than Old REDD+?

EII emphasizes that JREDD+ credits reward performance at the state or national scale, not farm-by-farm activities. Also, participation is voluntary. The programs are created with Indigenous peoples, traditional communities, and farmers. They do not limit how landholders can use their land. Critically, project-level credits are subtracted from the jurisdictional pool to prevent double-counting.

Under TREES, crediting leaves out some removals, like those from fire-damaged forests. It also tightens baselines every five years. Moreover, there are significant deductions for leakage, uncertainty, and reversals. These choices underestimate climate benefits but aim to raise robustness.

These features are key to EII’s claim. They say JREDD+ can help finance quick emissions cuts now. Meanwhile, longer-term funds like the proposed “Tropical Forest Forever Fund” can grow.

Policy Shifts and Potential Buyers: From Petrobras to China

Converting potential into real revenue hinges on policy and demand signals:

  • Domestic regulation:
    Brazil’s federal government can explain how states can access Paris Agreement Article 6.2 transactions. This is for those who exceed the national NDC pathway. It could raise carbon prices and volumes for jurisdictional credits.
  • Corporate demand:
    EII floats a COP 30 initiative where Petrobras convenes oil-and-gas peers to buy JREDD+ credits equal to about 1% of the sector’s Scope 3 emissions. This alone would multiply current forest and land-use demand on the voluntary carbon market tenfold.
  • Trade linkages:
    A Brazil–China partnership on “forests, food, and climate” could link trade with local deforestation cuts. It might also direct credit purchases into state JREDD+ programs. Discussions are underway with Brazilian states.

EII believes these steps can shift the market from intent to action. They could also help bridge the multi-billion-dollar funding gaps in law enforcement, fire management, and regenerative land use.

What Success Would Mean for Climate — and the Amazon

The AFCS scenario suggests around 1.5 GtCO₂e in net reductions from 2025 to 2030. This is nearly double what the EU-27 is expected to achieve during that time. This relies on Brazil continuing to reduce deforestation and improving fire prevention and natural regeneration.

About 21% of the cleared land in the Amazon is marginal and turning back into forest. So, targeted incentives could boost natural regeneration at a lower cost than active restoration. This could also help stabilize regional rainfall.

Brazil Amazon carbon intensity
Source: MAAP Program

EII connects climate benefits to public health and economic gains. This means fewer smoke-related illnesses and deaths. It also lowers risks for farm and forest investments. Plus, it creates new income streams for Indigenous peoples and smallholders. These include non-timber products, perennials, and aquaculture.

Still, EII’s main claim can be tested soon. If states set benefit-sharing rules, secure Article 6.2 eligibility, and finalize multi-buyer offtakes, then the first $1 billion in 2026 would prove that jurisdictional crediting works at scale.

Signals to Watch Before COP30

The report highlights COP30 in Belém, Brazil, as a pivotal moment for Amazon JREDD+. The country will host global climate negotiators in November 2025. This event will allow states to showcase their programs. They can also finalize pathways for Article 6.2 crediting. 

EII believes COP30 can be used to reveal big corporate groups. This includes oil-and-gas or agribusiness buyers who commit to JREDD+ purchases. This event may determine whether modeled revenues of up to $20 billion move from projections to real contracts within the decade.

Some of the key market trends to watch are:

  • State milestones: publication of final benefit-sharing frameworks and issuance of first TREES credits.
  • Federal signals: Brazil’s alignment of Article 6.2 pathways for subnational programs.
  • Buyer coalitions: oil-and-gas Scope 3 purchase commitments and commodity-trade linkages with China.
  • Market breadth: whether jurisdictional credits revive voluntary carbon market volumes and pricing after the 2024 slump.

The EII report quantifies a plausible $10–$20 billion revenue pathway for Amazon JREDD+ this decade if governance, integrity, and buyer demand align. That level of financing could speed up Brazil’s forest-climate shift and provide social benefits. But this will only happen if policies and purchase commitments develop as quickly as expected.

The post Amazon’s $20B Carbon Credit Boom? Brazil’s REDD+ Faces Integrity and Demand Test appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF

Published

on

Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF

Amazon, once again, is one of the top corporate buyers of clean and renewable energy in the world. For the fifth year in a row, the company leads global corporate renewable energy procurement. BloombergNEF again recognized Amazon as a top corporate purchaser of carbon-free power, with a portfolio that adds significant new clean energy to grids.

Amazon’s clean energy projects now span more than 700 global initiatives. These include utility-scale solar and wind farms, battery storage, onsite solar, and other carbon-free energy sources across 28 countries.

So far, Amazon has invested in over 40 gigawatts (GW) of carbon-free energy capacity. This amount of power could supply the annual electricity needs of more than 12.1 million U.S. homes if it were used for residential demand.

These investments make Amazon not just a buyer of clean power for itself, but a major driver of new renewable energy build-out around the world.

From First PPA to 40GW Global Portfolio

Amazon’s renewable energy footprint has expanded rapidly over the past decade. The big tech company was the biggest corporate buyer of renewable energy in 2025, based on BloombergNEF data. It signed multiple power purchase agreements (PPAs) and grew its clean energy portfolio.

corporate clean energy purchases BNEF 2025
Source: BNEF
  • Amazon has backed over 700 wind and solar projects around the world. This clean energy can power more than 12.1 million U.S. homes each year.

This expansion includes utility-scale wind and solar farms. It also covers renewable energy bought through PPAs. Additionally, it features on-site rooftop and ground-mount solar projects at Amazon facilities.

Over time, these efforts have helped the tech giant use more clean energy for its electricity, which is a key part of its climate strategy.

Amazon renewable energy portfolio 2025

Solar, Wind, Storage — and Next-Gen Power

Amazon’s clean energy portfolio includes a broad mix of technologies:

  • Solar power: 300+ utility-scale solar and wind farms and 300+ onsite solar projects.
  • Wind energy: Large wind farms in multiple countries, with 6 offshore wind farms in Europe. 
  • Energy storage: Battery storage projects that help balance intermittent renewable output. It has 11 utility-scale battery storage projects. 
  • Emerging technologies: Amazon has invested in advanced options like nuclear small modular reactors (SMRs), with 4 nuclear power agreements. These help provide firm, low-carbon baseload power. 

These investments help replace fossil fuel generation on local grids. They also support grid reliability and reduce electricity costs over the long term.

In Mississippi, for example, Amazon worked with a utility to enable 650 megawatts (MW) of new renewable energy on the grid. Once operational, this capacity will serve the equivalent of over 150,000 homes and improve grid reliability.

Moreover, the company’s 253 MW Amazon Wind Farm Texas contributes around 1,000 GWh of clean power annually. Meanwhile, its European solar and wind assets alone total about 4,600 MW of capacity.

All these efforts form part of the e-commerce’ push for its 2040 net zero targets.

Powering the Path to Net Zero 2040

Amazon has set multiple climate and sustainability targets. The company aims to reach net-zero carbon emissions by 2040 — a goal it committed to early as part of The Climate Pledge.

Amazon net zero emissions 2040
Source: Amazon

To work toward that long-term target, Amazon set a goal to match its electricity use with renewable energy. It reached 100% renewable electricity for its operations ahead of schedule, well before its original 2030 goal.

This means Amazon is purchasing an amount of renewable electricity equal to its total annual consumption. Clean power comes from renewable projects connected to the grid. These projects are supported by long-term PPAs and other contracts.

The renewable energy purchases lower Amazon’s Scope 2 emissions, which come from the electricity it buys. They also help decarbonize the grids where the company operates.

Corporate Buyers Now Rival National Grids

Amazon’s clean energy efforts are part of a larger shift across the corporate world.

Since 2008, companies have bought almost 200 GW of renewable energy worldwide through corporate PPAs and other agreements. This capacity exceeds the total electricity generation of some countries, like France or the United Kingdom.

In 2023, companies revealed a record 46 GW of clean energy deals. These renewable power commitments support new solar and wind farms.

Large tech companies, including Amazon, Google, Microsoft, and Meta, are some of the most active buyers. Those tech firms accounted for a significant share of corporate clean energy procurement over the last decade.

This trend shows that corporate demand can speed up the clean energy shift by providing renewable power developers with long-term revenue certainty.

 Jobs, Grid Stability, and Market Transformation

Corporate clean energy procurement, though slowed down in 2025, has broader economic and energy-system impacts. Investments in renewable projects contribute to job creation, local economic growth, and grid resilience.

Amazon’s solar and wind farms create many construction and operation jobs. They also boost the economy in rural areas. For example, the Great Prairie Wind Farm in Texas has 350 wind turbines. These turbines provide over 1,000 MW of capacity and are one of the largest assets in Amazon’s portfolio.

Also, Amazon’s clean energy deals boost renewable capacity. These projects are in Brazil, India, China, Australia, and Europe, which support markets with different grid mixes. These projects can cut down on fossil fuel-based electricity. They also help local grids stay cleaner and stronger.

Permitting, Policy, and the Next Growth Wave

Despite strong progress, corporate clean energy procurement still faces challenges.

Renewable projects often depend on grid capacity, permitting, and supportive policy frameworks. In some regions, complex regulations or limited grid access can slow project development and clean energy adoption.

Nevertheless, the trend of corporate power purchasing is expected to grow. Data from the Clean Energy Buyers Association (CEBA) shows that U.S. businesses have signed contracts for 100 GW of clean energy. This milestone highlights how important companies are in today’s energy landscape.

Global renewable capacity is also expanding rapidly. According to IRENA, global renewable power capacity reached 4,448 GW at end-2024 after adding a record 585 GW. That’s 15.1% growth with solar leading 75%+ of additions. The 2025 additions are expected to maintain record growth toward the 2030 tripling goal.

Renewables are now growing faster than fossil fuels in new capacity. Looking ahead, strong demand from companies for clean energy will boost growth. Better policies and tech advancements will also help renewable power buying and grid decarbonization.

Private Capital Driving Public Energy Changeaction

Amazon’s clean energy leadership shows how corporate buyers can influence the global energy transition. By securing large portfolios of renewable power, the tech giant and other major corporations are investing in the future of clean electricity. These investments not only help reduce their own emissions but also fund new clean energy capacity that benefits broader society.

As corporate renewable procurement grows, so does the clean energy market. This can lower costs, stimulate innovation, and increase the pace of emission reductions across power systems worldwide.

With more companies setting clean energy goals and signing long-term agreements, the private sector continues to be a powerful force in the shift toward a low-carbon economy.

The post Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy

Published

on

NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy

NVIDIA’s latest earnings report shows the scale of the AI boom. The chipmaker reported record revenue and became the fourth U.S. tech company to exceed $100 billion in annual profit. Alongside financial growth, Nvidia continues to push renewable energy use and efficiency gains. The results highlight the growing link between AI expansion and sustainability challenges.

NVIDIA reported record revenue of $68.1 billion for the fourth quarter of fiscal 2026, ending January 25, 2026. This figure was up 73% from a year earlier and up 20% from the prior quarter. Data center sales, which fuel artificial intelligence (AI) growth, were $62.3 billion, or about 91% of total revenue in the quarter.

For the full fiscal year, NVIDIA posted $215.9 billion in revenue, a jump of 65% from the prior year. Net income reached tens of billions, $120,067 million for the full year and $42,960 for the 4th quarter. Earnings per share also grew significantly.

These results exceeded most analysts’ expectations and underscored NVIDIA’s continued leadership in AI compute hardware. The company also forecast strong revenue for the first quarter of fiscal 2027.

NVIDIA financial results 2025
Source: NVIDIA

NVIDIA’s Sustainability Commitments at a Glance

NVIDIA has increasingly highlighted its environmental and sustainability goals in recent years. For the fiscal year 2025, the company achieved 100% renewable energy use for all offices and data centers it directly controls.

The renewable supply came from a mix of:

  • On-site generation
  • Purchased renewable electricity
  • Energy attribute certificates (EACs)
  • Power purchase agreements (PPAs)

This milestone eliminates the company’s market-based Scope 2 emissions tied to electricity use in those facilities.

While operational emissions from electricity have been addressed, total emissions figures remain complex. NVIDIA reported that its total greenhouse gas emissions increased. This includes Scope 3 emissions linked to its supply chain and purchased goods. Scope 3 emissions accounted for the bulk of its emissions inventory, and they rose significantly year-over-year.

Nvidia GHG emissions 2024

NVIDIA has also incorporated science-based targets and reduction plans into its public disclosures. The company aims to cut direct (Scope 1) and electricity-related (Scope 2) emissions by about 50% by 2030. This is based on its baseline figures. These science-based targets are consistent with internationally recognized climate frameworks.

Beyond energy use, NVIDIA has implemented other environmental actions. Closed-loop liquid cooling systems in data centers help cut water use. Also, there are significant increases in recycling electronic waste each year.

AI Performance Per Watt: NVIDIA’s Efficiency Edge

NVIDIA’s technology can influence emissions well beyond its own operations. The company’s GPUs and systems power AI infrastructure around the world. Many of these systems are designed to be energy efficient.

For example, NVIDIA-based systems dominate rankings of the most energy-efficient supercomputers globally. The Green500 list ranks systems based on energy efficiency.

Many top entries use NVIDIA GPUs, especially the advanced Grace Hopper architecture. These systems deliver high computing performance per watt of power, helping labs and data centers run complex workloads with less energy.

Record Profits, Cautious Market Reaction

Despite the strong financial performance, NVIDIA’s share price movement highlights market nuances. Some reports noted that after an initial uptick in after-hours trading, the stock’s gains flattened or reversed. This response came even as NVIDIA beat revenue and profit expectations.

NVIDIA nvda stock price

Analysts point to broader concerns about the valuation of high-growth AI stocks. Investors are cautious despite strong earnings. They worry about how fast AI demand will grow and whether valuations show future risks.

In early 2026, NVIDIA’s stock had also seen uneven performance year-to-date. Some analysts believe the trading pattern after earnings shows sector sentiment more than the company’s actual results.

NVIDIA’s profit scale also stands out compared with other major U.S. tech firms. For fiscal year 2026, the tech giant reported $120 billion in net income. This made it the fourth U.S. tech company ever to exceed $100 billion in annual profit, joining Alphabet, Apple, and Microsoft.

  • NVIDIA’s result trails only Alphabet’s $132 billion profit in 2025, which remains the largest annual profit ever recorded by a U.S. company.

The speed of NVIDIA’s rise is also notable. Just three years ago, the company’s annual net income was $4.4 billion. In its most recent quarter, the chipmaker generated that amount in less than 10 days.

Nvidia annual profit 2025 vs other big tech
Source: Statista

By comparison, Apple took 18 years to grow from $5 billion in annual profit to $112 billion, beginning around the launch of the iPhone in 2007. Microsoft took 27 years to move from $5 billion to more than $100 billion in annual profit. Alphabet first crossed the $100 billion mark in 2024. NVIDIA hit this milestone in under three years. CEO Jensen Huang pointed out the company’s AI gains in May 2023.

Efficiency Gains vs. Expanding Energy Footprint

NVIDIA’s external ESG ratings are similar to those of other tech companies for environmental and governance metrics. However, the scores vary in social and supply chain areas. These ratings consider things like how well companies disclose information, their plans for cutting emissions, and their governance. They also look at challenges related to wider supply chain emissions.

One sustainability ranking highlighted a “paradox” in NVIDIA’s performance. It noted that NVIDIA’s chips are among the most energy-efficient in the world, which boosts its sustainability profile. The quick rise in total energy use for AI infrastructure is increasing overall environmental impacts. This happens even as per-unit efficiency improves.

NVIDIA’s renewable energy goals and efficiency gains have positioned it as a leader. It combines strong finances with sustainable growth. For instance, in a 2026 list of top firms for sustainable growth, NVIDIA stood out. It achieved 100% renewable energy for its offices and data centers. Plus, its GPU platforms are energy efficient.

Can AI Hypergrowth Align With Climate Targets?

NVIDIA’s sustainability strategy focuses on three key areas:

  • Reducing direct and indirect emissions.
  • Improving energy use.
  • Enhancing reporting transparency.

The company has achieved important goals. It now uses renewable energy for its facilities. It has also improved chip efficiency. These steps show progress toward environmental goals.

Still, rising Scope 3 emissions and the booming demand for AI compute make tackling environmental impacts more complex. NVIDIA’s sustainability reports highlight that energy use in data centers is a major barrier. This limits both digital infrastructure growth and climate progress.

Energy-intensive “AI factories” — large data centers running training and inference workloads — require large power supplies, often on par with traditional industrial factories. This growth in demand puts pressure on energy systems to shift toward low-carbon sources.

NVIDIA’s efforts to work with suppliers on emissions targets and its investments in energy efficiency aim to address parts of this challenge. But the company has not yet announced a full net-zero emissions target with a fixed date.

So, What Comes Next for NVIDIA?

In the near term, NVIDIA will likely continue to be a focal point for both earnings performance and ESG debate. Future earnings releases and sustainability reports will show whether the company’s actions keep pace with its growth.

Investors and stakeholders will watch how NVIDIA manages AI demand, emissions challenges, and energy efficiency together.

On the sustainability side, developing and reporting progress on Scope 3 emissions, supplier engagement, and potential net-zero pathways will shape ESG evaluations. As AI energy use rises worldwide, companies like NVIDIA will face more scrutiny over how they balance growth with their emissions and climate impact.

Overall, NVIDIA’s record earnings and sustainability efforts highlight its role in tech innovation and environmental change. The company balances rapid AI growth with a commitment to lowering its environmental impact.

The post NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance

Published

on

Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance

Indigo Carbon announced it has now passed 2 million metric tons of verified climate impact from U.S. croplands. The company reached the milestone after issuing its fifth U.S. “carbon crop.” The new issuance includes 1.1 million independently verified carbon credits issued through the Climate Action Reserve (CAR).

Indigo describes the milestone in its announcement as a sign that soil-based carbon programs can scale. It also points to rising corporate demand for credits that meet stricter quality rules.

Indigo’s latest issuance is important because it is linked to a major registry method that now carries an additional integrity label. Max DuBuisson, Head of Impact & Integrity, Indigo, remarked:

“Indigo continues to set the standard for high-integrity soil carbon removals that corporate buyers can trust. Soil carbon is uniquely positioned to scale as a climate solution because it captures and stores carbon while also improving water conservation and crop resilience. By combining world-class science and technology with farmer-driven practice change, we’re proving that agricultural soil carbon is an immediate, durable, high-integrity solution capable of helping global companies meet their climate commitments.”

Inside the 1.1M Credit Issuance and CCP Label

Indigo says its fifth issuance includes 1.1 million carbon credits verified and issued through CAR. These credits come from Indigo’s U.S. soil carbon project, listed on the Climate Action Reserve under the Soil Enrichment Protocol (SEP) Version 1.1.

CAR’s SEP is designed to quantify and verify farm practices that increase soil carbon and reduce net emissions. It covers changes in soil carbon storage and also includes reductions in certain greenhouse gases tied to farm management.

CAR’s SEP Version 1.1 has the ICVCM Core Carbon Principles (CCP) label. This means the method meets the standards set by the CCP framework.

ICVCM core carbon principles
Source: ICVCM

Indigo’s disclosures also describe long-term monitoring rules. The company reports that its U.S. project includes 100 years of project-level monitoring after credit issuance, in line with CAR requirements. This mix of independent verification, registry issuance, and long monitoring periods is central to the case Indigo makes for credit quality.

Breaking Down the 2 Million Ton Milestone

Indigo says its total verified impact now exceeds 2 million metric tons of carbon removals and reductions across U.S. croplands.

In carbon markets, one credit equals one metric ton of CO₂ equivalent. Indigo’s latest issuance is very large by soil carbon standards. It also builds on earlier “carbon crop” issuances.

Indigo’s project disclosures include a quantified impact figure for its U.S. project. The company reports 927,367 tCO₂e reduced or removed through Dec. 31, 2023, for the project listed as CAR1459.

Indigo Carbon impact by the numbers
Source: Indigo

Indigo announced it has saved 118 billion gallons of water. It has also paid farmers $40 million through its programs so far. These points matter because many buyers now look beyond carbon totals. They also want evidence of farmer payments, monitoring rules, and co-benefits like water conservation.

Corporate Demand Shifts Toward Verified Removals

One reason soil carbon is getting more attention is the growing demand from buyers for removals. Many companies now focus more on carbon removal credits, not only avoidance credits.

Indigo’s largest recent buyer example is Microsoft. In January 2026, the carbon ag company announced a 12-year agreement under which Microsoft will purchase 2.85 million soil carbon removal credits from them.

  • The soil carbon producer said this is Microsoft’s third transaction with the company, following purchases of 40,000 tonnes in 2024 and 60,000 tonnes in 2025.

The tech giant’s purchases show how corporate buyers may use long-term offtake deals to secure future supply of credits. This matters for soil carbon programs because credits are typically generated over multiple years. And they also depend on practice changes and verification cycles.

Indigo also says its program works across eight million acres, which signals how it is trying to scale participation across U.S. farms.

Soil Carbon Credits: Market Trends and Forecast

Soil carbon credits are gaining attention as buyers shift toward higher-quality credits and clearer verification rules. Ecosystem Marketplace reports that the voluntary carbon market is entering a new phase. This phase emphasizes integrity, even though trading activity has slowed down.

In its 2025 market update, Ecosystem Marketplace noted a 25% drop in transaction volumes. This decline shows lower liquidity as buyers are becoming more selective.

Voluntary carbon credit market; price, volume, value 2022-2024

At the same time, demand for higher-quality credits is rising. Sylvera’s State of Carbon Credits 2025 reported that retirements dropped to 168 million credits in 2025, a 4.5% decrease.

Still, the market value climbed to US$1.04 billion due to rising prices. It also found that higher-rated credits (BBB+) made up 31% of retirements, and traded at higher average prices than lower-rated supply.

For soil carbon, buyers are also watching methodology quality. The ICVCM has approved two sustainable agriculture methods as CCP-approved. These are the Climate Action Reserve’s Soil Enrichment Protocol v1.1 and Verra’s VM0042. This can support stronger buyer confidence and may increase demand for soil credits that meet CCP rules.

Looking ahead, Sylvera projects compliance-linked demand will keep growing and could exceed voluntary demand by 2027. That trend may favor credits with stronger verification and compliance alignment, including higher-integrity soil carbon credits. However, integrity issues still occur, and this is where Indigo comes in.

Tackling Permanence and MRV Head-On

Soil carbon credits face a key challenge: carbon stored in soil can be reversed. A drought, land use change, or a shift in farm practices can reduce stored carbon.

This is why monitoring and reversal rules matter. CAR’s protocol is built to quantify, monitor, report, and verify practices that increase soil carbon storage.

Indigo’s project disclosure notes that projects are monitored for 100 years after they are issued. This shows the durability rules tied to their method and registry approach.

The company also positions its program as “outcome-based,” meaning it pays for verified carbon outcomes rather than paying only for adopting a practice. This messaging is designed to reassure buyers that credits are not only modeled. It stresses verification and the registry process.

A Scale Test for High-Integrity Soil Carbon

Indigo’s fifth issuance lands at a time when voluntary carbon markets are placing more weight on integrity labels and independent verification.

Two parts stand out:

  • First, volume. An issuance of 1.1 million credits through a registry is large for an agricultural soil carbon program.
  • Second, method approval. CAR’s SEP Version 1.1 carries the ICVCM CCP label, which is meant to signal alignment with a global integrity benchmark.

That combination may make it easier for corporate buyers to justify purchases internally. Many companies now face stronger scrutiny from auditors, regulators, investors, and civil society groups.

At the same time, more supply does not automatically mean market confidence rises. Buyers still assess risks such as permanence, additionality, and measurement uncertainty.

Even so, the milestone shows how fast some parts of the removals market are trying to scale. Large buyers are also helping drive this shift through multi-year offtake deals, like the Microsoft agreement for 2.85 million credits.

For Indigo, the new issuance supports its claim that soil carbon is moving from small pilot volumes toward larger, repeatable issuances. For the market, it adds another real-world data point: a major soil carbon program has now completed five issuance cycles and passed 2 million metric tons of verified climate impact.

The post Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance appeared first on Carbon Credits.

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com