Former C-Quest Capital (CQC) Chief Executive Officer Kenneth Newcombe was indicted on charges of wire fraud and commodities fraud. Federal prosecutors accused him of falsifying emissions-reduction data to secure millions of carbon credits and over $100 million in investments.
Newcombe, who founded C-Quest in 2008, allegedly manipulated data from emission-reduction projects, such as providing cooking stoves in developing countries, to exaggerate their success. Prosecutors claim he covered up lower-than-expected emissions reductions to drive aggressive project growth.
The case, known as US v. Newcombe, 24-cr-567, is being handled in the US District Court for the Southern District of New York (Manhattan).
What C-Quest Capital Does
Washington-based C-Quest focuses on high-impact carbon reduction projects, improving lives in developing nations while combating climate change. CQC generates high-impact carbon credits through three core platforms:
- Cleaner cooking,
- Sustainable energy, and
- Efficient lighting.

The company distributes clean energy technologies, such as cookstoves, to reduce deforestation and carbon emissions. Their projects span over 20 countries and have improved the lives of more than 41.5 million people, aiming to reduce 1 billion tonnes of CO₂ emissions by 2030.
Their initiatives address sustainable development goals and are verified by leading standards. C-Quest has been recognized for excellence in energy efficiency and public health projects.
The carbon project developer created the “Transformation Carbon” projects. Each project complies with established carbon offset standards and undergoes strict third-party audits to ensure the credits are genuine, measurable, and impactful.
Yet, the alleged fraud scheme against CQC’s CEO shakes up the company’s results and achievements.
False Offsets: Emissions Data Manipulation Scandal
Kenneth Newcombe played a pivotal role in advancing carbon trading during his tenure at the World Bank. In 1994, he spearheaded the Bank’s participation in the Forest Market Transformation Initiative, a coalition involving conservation NGOs, forest industry corporations, researchers, and financiers.
This initiative led to the establishment of Forest Trends, a Washington, D.C.-based NGO promoting carbon trading, with CEO Michael Jenkins also having ties to the World Bank. Ecosystem Marketplace, an online publication advocating for carbon trading, emerged from Forest Trends.
In 2006, Newcombe transitioned from the World Bank to Climate Change Capital, the largest private sector carbon fund globally. He subsequently led the carbon desk at Goldman Sachs for a year before founding his own company, C-Quest Capital.
Newcombe served on Verra’s, a leading issuer of carbon credits, board from 2007 until December 2023. However, in February 2024, at the age of 76, he announced his decision to step down as CEO of C-Quest Capital, stating that he was among several senior executives and employees who were “terminated.”
Newcombe now faces up to 20 years in prison if convicted of the most serious charges. Prosecutors allege that Newcombe, along with C-Quest employees, manipulated data to present certain projects as more successful than they were.
One of the key accusations relates to the carbon offsets C-Quest earned by implementing these projects. These carbon offsets are then sold to companies looking to offset their emissions. One carbon offset represents one tonne of emissions avoided or removed.
The accusations come as a significant blow to the carbon offset development industry, where C-Quest and Newcombe had been prominent players. The investors allegedly deceived by Newcombe remain unidentified. C-Quest’s backers, according to its website, include Macquarie Group and GenZero, a unit of Temasek Holdings.
A spokesperson for Newcombe, who is battling cancer at 77, denied the allegations, stating that Newcombe believes the charges are false. The statement also expressed Newcombe’s confidence that should he live to see a jury trial, his name would be cleared.
Federal prosecutors also charged C-Quest’s former head of carbon and sustainability accounting, Tridip Goswami, alongside Newcombe. Goswami, who is in India, was not immediately available for comment. However, former Chief Operating Officer Jason Steele has already pleaded guilty and agreed to cooperate with the authorities.
C-Quest itself was not charged, as the company self-reported the alleged wrongdoing in July and cooperated with law enforcement. At the time, Verra suspended C-Quest’s projects while reviewing the matter. Prosecutors noted that C-Quest’s proactive reporting and cooperation played a significant role in sparing the company from criminal charges.
First Fraud Case Shakes Trust in Voluntary Carbon Credits
In a separate but related action, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Newcombe, amplifying the legal troubles faced by the former CEO.
The Commission accused him of providing misleading information to carbon credit registries and 3rd-party reviewers to secure more credits than the company was entitled to.
The CFTC is seeking penalties, disgorgement of profits, and a permanent trading ban. Additionally, the CFTC issued orders against CQC Impact Investors and its former Chief Operating Officer Jason Steele.
These are the first actions for fraud in the voluntary carbon credit market, marking a pivotal moment for market integrity. CQC was found guilty of submitting false information to obtain millions of carbon credits between 2019 and 2023. These credits involved projects aimed at reducing carbon emissions in regions like Africa, Asia, and Central America.
CQC cooperated with the CFTC’s investigation, resulting in a $1 million penalty, but the penalty was reduced due to the company’s efforts to address misconduct. CQC admitted its wrongdoing and has agreed to retire or cancel carbon credits in response to its fraudulent activities. This cooperation, alongside the company’s remediation steps—such as terminating key personnel involved in the scheme—helped reduce its penalty.
Newcombe’s accusation raises concerns about integrity in the voluntary carbon market. This pivotal carbon credit fraud underscores the importance of transparency and strict enforcement.
The post Former C-Quest Capital CEO Accused of $100M Carbon Credit Fraud Scheme appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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