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).
Additionality is typically assessed in two ways: through investment returns or “common practice.” When examining over 1,700 registered projects, MSCI found that carbon credits contributed to less than 4% of total revenue, with hydro and solar projects even lower at around 3%.
Percentage of project revenue coming from carbon credits
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.
In June, the Integrity Council approved two types of projects for its Core Carbon Principles label. These include projects that capture methane from landfills and those that remove ozone-depleting gases from discarded equipment, such as air conditioners. However, these approvals faced criticism for not providing additional emissions reductions.
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.
DGB Group (Euronext: DGB) stands at a defining crossroads in its corporate journey. Where just a few years ago the company was focused on restructuring and resolving legacy challenges, it is now demonstrating real momentum: audited financial results, commercial traction in the voluntary carbon market, and a strong pipeline of international nature restoration projects. In a recent interview on RTL7–a Dutch television channel known for its business and financial programming–CEO Selwyn Duijvestijn offered a candid reflection on this progress. This article highlights the key takeaways.
Disseminated on behalf of StorEn.
Demand for home energy storage is booming, with up to 47% of US homes expected to have rooftop solar installations by 2050. But there’s one major flaw: the batteries powering those systems don’t last.
That’s why StorEn has created a home battery with the potential to last twice as long as Tesla’s Powerwall (the current market leader).
Here’s why investors need to watch this company.
How StorEn Is Solving the Home Battery Problem
Most home battery systems, including Tesla’s Powerwall, rely on lithium-ion technology. These batteries degrade quickly, pose safety risks, and create environmental waste. They typically need replacement every 5–10 years and aren’t built for long-term use. They can also burn for days when disaster strikes, releasing toxic fumes, as we saw in the recent California wildfires.
That’s why the most advanced power plants in the world have been using vanadium flow technology. It’s the same reliable, low-risk battery tech that powers major cities around the world today.
No one has been able to scale vanadium flow tech down to the residential level. But StorEn is doing it with their first-of-its-kind vanadium flow battery for homes. Instead of 10 years, it’s built to last 20. It’s also small enough to fit inside a garage, with a non-flammable and 100% recyclable design.
Why StorEn Is A Major Energy Disruptor
The residential energy storage market is expected to surpass $90 billion by 2033, and lithium-ion batteries simply aren’t sustainable enough to meet demand.
That’s why, while Tesla’s Powerwall holds 62% of the market, StorEn is a prime contender to dominate in the rise of home energy storage.
Not only can StorEn power homes for up to 20 years, but their solution also unlocks major commercial potential in the telecom and microgrid markets.
Amid this once-in-a-generation shift in energy, StorEn has all the pieces to thrive. What’s more, they have the track record to prove it.
StorEn Is Proving Themselves As We Speak
With a pipeline of $11M+ in forecasted revenue and a community of 9,000+ investors already, StorEn is on track to become the leader in long-duration home energy storage.
The company is led by pioneers in energy storage and battery chemistry, including CEO Angelo D’Anzi, a 23-year veteran in fuel cell and electrolyzer development. Angelo himself holds 18 WIPO patents in Vanadium Flow Batteries and Fuel Cells.
Now, this team has patented a vanadium flow battery compact enough to power homes—with the same durability and reliability trusted by cities and industrial plants.
And you have an opportunity to join them.
Why Now Is the Time to Invest in StorEn
As clean energy adoption grows, the need for longer-lasting, safer, and more sustainable batteries is becoming urgent.
StorEn has raised $12.5M from 9,000+ investors and is preparing for global expansion.
As lithium supply chains face pressure and investors seek genuine innovation, StorEn’s vanadium flow technology offers the long-term solution the market has been anticipating.
Become a StorEn shareholder as they redefine energy storage.
This is a paid advertisement for StorEn’s Regulation CF offering. Please read the offering circular at https://invest.storen.tech/
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The post A Battery ‘2X Better’ than Tesla’s Is Reshaping the $90B Home Power Storage Market appeared first on Carbon Credits.
Carbon Footprint
Saudi Arabia’s Carbon Ambition: NEOM’s Enowa and VCM Ink 30M Tonnes Carbon Credit Deal
The Voluntary Carbon Market Company (VCM) and Enowa, NEOM’s energy and water arm, have struck a landmark deal to deliver at least 30 million tonnes of high-integrity carbon credits by 2030. This long-term agreement shows Enowa’s promise to offset its unavoidable emissions. It also supports global climate action. This is especially true for projects in the Global South, which gain stable, long-term funding. The first delivery occurred in December 2024.
VCM launched Saudi Arabia’s first carbon credit exchange in November 2024. It was founded by the Public Investment Fund (PIF) with 80% ownership and the Saudi Tadawul Group with 20%.
The platform offers top-level carbon trading, clear price discovery, global registry access, and aims to support Islamic finance structures. It also operates an auction system and will introduce spot trading in 2025.
This agreement highlights the growing demand. The global voluntary carbon market is expected to rise from $2 billion in 2020 to $250 billion by 2050. This growth is fueled by both companies and projects.
A Game-Changing Carbon Credit Pact
The VCM–Enowa agreement is a big step in voluntary carbon markets. It moves from one-time purchases to a long-term approach. Under the deal, Enowa will secure 30 million tonnes of high-quality carbon credits by 2030—about 3 million tonnes annually. This steady volume helps stabilize the market for everyone. It also unlocks vital funding for climate projects worldwide.
For developers, especially in the Global South, such long-term offtake agreements mean:
- Reduce risk,
- Support scalability, and
- Allow for better project planning.
As VCM CEO Riham ElGizy noted:
“The long-term agreement between VCM and Enowa to facilitate the delivery of over 30 million tons of carbon credits by 2030 marks a significant moment in Saudi Arabia’s journey to drive growth in global voluntary carbon markets. It helps Enowa compensate for today’s emissions while creating sustainable infrastructure for the long term.”
Enowa, already active in previous VCM auctions, becomes the first company in Saudi Arabia to enter such a long-term deal. Acting CEO Jens Madrian said it reflects their commitment to NEOM’s goal of 100% renewable energy. NEOM’s green infrastructure vision aligns closely with Enowa’s emissions management strategy.
This deal is huge: 30 million tonnes over ten years equals the yearly emissions of a mid-sized industrial country. This sets a high standard for corporate climate action in the area.
Building a Mature Carbon Market in Saudi Arabia
The VCM–Enowa deal also strengthens Saudi Arabia’s growing carbon trading ecosystem. Launched in November 2024, VCM’s voluntary carbon exchange is the Kingdom’s first institutional-grade platform. It provides key market tools such as auctions, RFQ features, block trades, and a new spot market. These tools improve price transparency, boost liquidity, and give access to a global registry.
Through successful auctions in 2022, 2023, and 2024, VCM has transacted over 4.7 million tonnes of carbon credits with buyers from 15+ countries. Projects include reforestation, soil carbon, clean cookstoves, and renewables. These show a strong demand for quality credits in many regions.
VCM stands out by aligning with both international standards and regional needs. It is creating Shariah-compliant infrastructure. This allows more MENA-based investors to use ethical finance tools. Its support ecosystem helps project developers in Africa and the Middle East. It includes advisory services and registry integrations. This way, developers can gain visibility and find long-term buyers.
This platform arrives as voluntary carbon markets face scrutiny over credibility. Backed by PIF and Tadawul, VCM provides a transparent, high-integrity marketplace. As ICVCM and COP29’s Article 6.4 advance global standards, VCM is positioning itself to lead regionally and globally.
Saudi Arabia aims to replicate its energy market leadership in climate finance. VCM’s success could channel billions into emerging economies and close the climate finance gap—estimated at $1.5–$2 trillion annually by the UN and World Bank. Voluntary carbon markets are increasingly vital to this mission.
Enowa and NEOM: A Blueprint for Net Zero
Enowa, the energy and water subsidiary of NEOM, plays a central role in advancing Saudi Arabia’s carbon neutrality goals. As part of the futuristic NEOM development, Enowa is building a 100% renewable-powered energy system that relies on solar, wind, green hydrogen, and cutting-edge digital infrastructure. This carbon-free framework is central to NEOM’s ambition to become a global model for low-emission urban living.
Enowa’s long-term agreement with VCM reflects its strategy to tackle unavoidable emissions through high-integrity carbon credits, complementing its broader sustainability efforts.
The company is actively involved in deploying smart grid technologies and water recycling systems that support circular economies. Its approach aligns with international net-zero frameworks, aiming to drastically reduce operational emissions while fostering innovation in climate resilience.
$250B and Counting: Why Voluntary Carbon Markets Are Booming
Voluntary carbon markets are set for explosive growth. Reports predict an increase from $2 billion in 2020 to $250 billion by 2050, with interim estimates ranging from $45 billion to $100 billion by 2030.
MSCI forecasts market expansion from $1.4 billion in 2024 to potentially $35 billion in high-demand scenarios by 2030. Around the world, projects that cut or eliminate carbon are getting more funding through voluntary carbon credits. There is strong demand for credits that also support community development and protect biodiversity.
Why Corporate Commitments Demand Certainty
Companies—especially those in tech, energy, and manufacturing—seek reliable offsets to meet net-zero goals. Long-term purchase agreements like VCM–Enowa’s offer greater credibility and transparency than spot buys.
They make sure that top-quality credits come from projects in developing countries. This aligns emissions cuts with sustainable development. In turn, these agreements help build carbon market capacity in the Global South.
Challenges and the Path to Integrity: Fixing Trust in Carbon Credits
However, voluntary carbon markets face credibility issues. High-profile cases, such as problems in Kenya’s Northern Rangelands project—backed by Meta and Netflix—have sparked concerns. With Verra reviewing the project amid legal and environmental scrutiny, trust in carbon credits has taken a hit.
New rules from COP29’s Article 6.4 and efforts like ICVCM’s framework seek to enhance market integrity and transparency.
VCM’s institutional focus, long-term contracts, and integration with recognized standards are designed to reduce these risks by ensuring quality and oversight.
Saudi Arabia’s Big Carbon Bet Has Global Stakes
Meanwhile, Saudi Arabia’s move through VCM positions it at the forefront of voluntary carbon market expansion in the Middle East. Globally, Asian and South American countries are also scaling their own platforms and frameworks. Deals involving multinational firms and sovereign or semi-sovereign buyers lend scale and legitimacy to these markets.
This shift supports climate finance goals:
- Global climate funding currently stands at roughly $120 billion annually for low‑ and middle‑income countries, well short of the $300 billion yearly target by 2035 agreed at COP29.
Carbon markets like VCM can help fill that gap, particularly in driving private investment.
The VCM–Enowa agreement sets a new standard in voluntary carbon trading—long-term, high-volume, and high-integrity. Voluntary markets will likely grow a lot in the coming decades, and deals like this build trust and stability. They also provide financial security for climate projects in developing economies. With improved standards in place, voluntary carbon credits can become a powerful tool in global efforts to reach net-zero.
The post Saudi Arabia’s Carbon Ambition: NEOM’s Enowa and VCM Ink 30M Tonnes Carbon Credit Deal appeared first on Carbon Credits.
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