The Integrity Council for the Voluntary Carbon Market (ICVCM) has announced that carbon credits issued under existing renewable energy methodologies will not be eligible for its Core Carbon Principles (CCP) designation. This decision affects nearly one-third (32%) of the voluntary carbon market or about 236 million carbon credits. 333
ICVCM’s Decision Is Based on “Additionality”
The ICVCM’s decision is based on the concept of “additionality,” which asserts that the projects in question might have proceeded without the financial incentives from carbon credits. The Core Carbon Principles are designed to ensure that carbon credits contribute to emissions reductions that wouldn’t have occurred otherwise.
- READ MORE: The Core Carbon Principles
The CCP framework requires that the emissions reductions from carbon credits be additional, meaning they would not have happened without the carbon credit revenue. This principle is applied to eight methodologies, including grid-connected renewable energy generation and biomass energy production. They collectively represent about 236 million credits, or 32% of the voluntary carbon market (VCM).

This low revenue share suggests that carbon credits were unlikely to be a decisive factor in the development of renewable energy plants, especially for large-scale hydro, wind, or solar projects with significant upfront capital costs.
The CCP label now applies only to credits from five vetted programs using approved methodologies.
How Can This Impact the Carbon Offset Market?
ICVCM’s move could severely impact the carbon offset market, which has already shrunk nearly 25% from its 2022 peak, as shown in the chart below. It also highlights ongoing efforts to address criticisms of carbon offsetting, which has been accused of enabling greenwashing.

- SEE MORE: Will This Be The End of Carbon Offsets?
The ICVCM argues that the current methodologies are inadequate in determining if projects would have progressed without carbon credit revenues.
Climate experts have long criticized renewable energy credits, arguing they are ineffective because renewables are already a viable alternative to fossil fuels. Thus, carbon credits often do not influence decisions to develop or expand green energy projects, benefiting developers instead.
In 2022, renewable energy credits made up about 50% of offset purchases, up from 38% the previous year, according to Bloomberg. Major companies like Volkswagen, Etsy, and TotalEnergies have been among those purchasing these credits.
However, investigations have questioned the credibility of many offsets, prompting the ICVCM to impose stricter standards.
Greenlighting New Carbon Project Methodologies
On Tuesday, the ICVCM approved two more methodologies for the CCP label:
- detecting and repairing methane leaks in the gas industry and
- capturing methane from landfills.
The board rejected a methodology for reducing sulfur hexafluoride emissions in the magnesium industry. The ICVCM is also evaluating other offset categories, including REDD+ forestry methods, with decisions expected soon.
Currently, about 27 million credits, or 3.6% of the market, are eligible for the CCP label. The ICVCM is open to new, more rigorous renewable energy credit methodologies if they can promote clean energy in areas where it is not yet established.
Annette Nazareth, chair of the ICVCM, emphasized that carbon credits are a crucial financing tool. She further noted that:
“Renewable energy projects financed by carbon credits still have a role to play in the decarbonisation of energy grids because it remains challenging for many least developed countries to secure the investment they need to transition away from fossil fuels.”
While the ICVCM has rejected these methodologies for the CCP label, it acknowledged the importance of scaling renewable energy to achieve global climate targets. Major carbon credit registries like Verra and Gold Standard stopped accepting new grid-connected renewable energy projects in 2019, except for those in least-developed countries (LDCs).
What’s the Path Forward for Renewable Energy Credits?
According to Carbon Market Watch, over 280 million renewable energy credits are available in the voluntary carbon market. If all these credits were used, they could theoretically offset emissions equivalent to Thailand’s annual carbon dioxide output.
Inigo Wyburd, a policy expert at Carbon Market Watch, praised the ICVCM’s decision as a “positive step.” He said that it addresses the issue of low-quality credits that have been undermining the market.
Despite widespread skepticism about the effectiveness of renewable energy credits, they remain popular among corporate buyers, including fossil fuel majors like Shell and Total, as well as automakers and cruise operators.
Due to concerns about the validity of the emissions reductions claimed by renewable energy credits, their market price has significantly dropped over the last two years.
Data from MSCI shows that the average price of these credits is just $2 per tonne of carbon dioxide equivalent reduced. That’s less than half the price of offsets from projects aimed at forest conservation, methane emission reduction, or energy efficiency. The ICVCM’s recent decision is likely to further drive down these carbon prices.
Despite rejecting the current renewable energy methodologies for the CCP label, Amy Merrill, CEO of the ICVCM, suggested that improved methodologies could still gain approval. She emphasized that while renewable energy costs have fallen globally, they remain high in certain regions including:
- remote rural areas of developing countries,
- on islands with small populations, and
- in areas where renewable energy faces ideological resistance.
Methodologies that address these challenges could be strong candidates for future CCP approval. The ICVCM is open to reviewing more rigorous renewable energy methodologies in the future, particularly for projects in regions where renewable energy is challenging to implement.
The post ICVCM Axes Renewable Energy Carbon Credits from CCP Label appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
![]()
Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
![]()
-
Climate Change1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Greenhouse Gases1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Renewable Energy1 year agoSending Progressive Philanthropist George Soros to Prison?
-
Greenhouse Gases1 year ago
嘉宾来稿:探究火山喷发如何影响气候预测
-
Climate Change2 years agoAnalysis: China’s CO2 falls 1% in Q2 2024 in first quarterly drop since Covid-19
-
Climate Change1 year ago嘉宾来稿:探究火山喷发如何影响气候预测

