Carbon credits generated from renewable energy projects have failed to obtain a new quality label from a key oversight body, casting fresh doubt on popular emissions offsets favoured by multinational companies like Audi, Shell and Total.
The Integrity Council for the Voluntary Carbon Market (ICVCM) announced on Tuesday that eight renewable energy methodologies, which cover about a third of the carbon credits available on the voluntary market, cannot use its “Core Carbon Principles” (CCP) seal of approval.
The ICVCM, an independent watchdog, aims to address widespread concerns over the quality of carbon credits after many projects have been accused of overstating their climate and societal benefits. It is assessing groups of offsetting projects to determine whether they comply with the CCP criteria, which are designed to identify and encourage high-integrity carbon credits that meet requirements on governance, emissions reduction and sustainable development.
The body said existing standards are not strict enough on judging whether renewable energy projects need the funding generated by selling carbon offsets in order to go ahead – a concept known as “additionality”. But it emphasised that renewables like solar, wind and hydropower are key to tackling climate change and carbon credits “still have a role to play” in financing them.
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Since the eight methodologies were designed as long as 20 years ago, the cost of renewables has collapsed, and their profitability in many parts of the world has rocketed, meaning they are more likely to make money without needing extra revenue from selling carbon offsets.
The ICVCM said that “for several years, carbon market experts have noted concerns about the additionality of many renewable energy activities and the difficulties in transparently demonstrating the additionality of these activities approved under existing methodologies”.
Major carbon-credit registries like Verra and Gold Standard stopped accepting new grid-connected projects in 2019, with the exception of those located in least-developed countries (LDCs).
But pre-existing renewable energy activities continue to generate a sizeable chunk of all the offsets available on the registries.
According to a recent analysis by Carbon Market Watch, over 280 million renewable energy credits are available in the voluntary carbon market. If companies and individuals used all those credits, that would compensate on paper for emissions equivalent to the amount of carbon dioxide Thailand released into the atmosphere last year.
Inigo Wyburd, a policy expert at Carbon Market Watch, called the ICVCM’s decision “a positive step”. “It sends a clear message to tackle the issue of the many low-quality credits still in circulation and undermining the market,” he told Climate Home.
Despite long being written off as largely worthless by climate experts, renewable energy credits are still popular among corporate buyers.
Fossil fuel majors like Shell and Total, automakers and cruise operators were among the biggest purchasers of renewable energy credits over the last 12 months, an analysis of Verra’s database shows.
In one transaction last year, German carmaker Audi used nearly 100,000 carbon credits generated in 2021 from an Indian solar project to claim that its handover of electric vehicles in Europe and the United States was “CO2 neutral” despite the emissions involved in producing them.
Japanese parcel delivery service Yamato Transport Company and public entities like Australia’s Brisbane City Council and Western Sydney University also relied on renewable offsets to claim carbon neutrality in 2023.
Because of earlier concerns about whether carbon offsets generated by renewable energy deliver the emissions reductions they claim, their price has been falling over the last two years.
According to data provider MSCI, the average price is just $2 per tonne of carbon dioxide equivalent reduced – less than half the price of offsets derived from projects aiming to protect forests, tackle methane emissions or promote energy efficiency. Renewable energy credits are likely to see further falls in price after the ICVCM’s rejection.
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But Amy Merrill, CEO of the ICVCM, left the door open to better renewables methodologies obtaining CCP approval. She called on carbon crediting programmes to develop methodologies “that better reflect the rapidly changing and variable circumstances around renewable energy deployment”.
“While renewable energy costs have fallen dramatically around the globe over the past decade,” she said, “they have not fallen evenly across all countries and high up-front expenses and other barriers mean that there are still many places where it is difficult to deploy renewable capacity.”
The cost of renewables is particularly high in remote rural parts of developing countries without access to the electricity grid, on islands with small populations and in areas where the authorities are hostile to renewable energy for ideological reasons, particularly in parts of the US. Methodologies enabling projects in these places would have the best case to get CCP approval, market experts told Climate Home.
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Verra has announced that it will revise some of its additionality requirements “to address the deficiencies noted by the ICVCM”.
The registry plans to submit its new rulebook to the watchdog and give existing projects the possibility of updating their quantification of credits accordingly. “This is part of our commitment to providing a path for all VCS [voluntary carbon standard] projects that wish pursue a path to CCP labelling,” Verra said in a statement.
A Gold Standard spokesperson said ICVCM’s rejection of the methodologies was “ambiguous and potentially harmful to high-quality renewable energy carbon credits on the market today” as different regions across the world still face various financial and technical barriers making carbon finance necessary.
They added that Gold Standard would consider the ICVCM assessment framework among other inputs in its next review of relevant methodologies.
The ICVCM’s negative assessment of existing renewable energy credits could also have repercussions for the new United Nations carbon mechanism currently under development.
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Renewable energy projects make up four-fifths of all projects seeking a transfer from the old Kyoto-era Clean Development Mechanism (CDM) into the new market system being set up under Article 6 of the Paris Agreement, Climate Home revealed last January.
The projects need formal authorisation to proceed from the countries where their activities are located.
Carbon Market Watch’s Wyburd said ICVCM’s rejection of the renewable energy methodologies “will hopefully send a few shock waves” to the countries having to make those decisions. “Given their profound shortcomings, these credits should not be given a new lease of life under the future UN mechanism,” he added.
At the same time, the ICVCM approved other methodologies to capture methane from landfills and to detect and repair methane leaks in the gas industry. That means 3.6% of unretired carbon credits have now been approved to use the CCP label.
Audi, Shell, Norwegian Cruise Lines, Western Sydney University and Aviva did not respond to a request for comment on the impact of the ICVCM’s renewables decision. Total declined to comment.
(Reporting by Joe Lo and Matteo Civillini, editing by Megan Rowling)
The post Renewable-energy carbon credits rejected by high-integrity scheme appeared first on Climate Home News.
Renewable-energy carbon credits rejected by high-integrity scheme
Europe has been hit by a searing heatwave, which has shattered temperature records across France, Spain and the UK.
In London, for example, the mercury hit a record high for May of 35.1C at Kew Gardens on Tuesday 26 May, breaking the former record-high May temperature by more than 2C.
Multiple people have died as a result of the high temperatures, including 14 people across the UK and France who drowned.
The heatwave was driven by a “heat dome”, in which warm air moving up from northern Africa has become trapped under a high-pressure system over western Europe.
Experts have been quick to point out the link between extreme heat and global warming, with one saying it was “beyond a shadow of a doubt” that climate change was making such events “more likely and more severe”.
In this article, Carbon Brief examines the impacts of the heatwave and the role of climate change.
- What is happening with the May heatwave in Europe?
- What is driving the record-shattering heat?
- What are the impacts of the extreme heat?
- How has the media responded?
What is happening with the May heatwave in Europe?
Europe has been hit by “mind-bogglingly crazy” temperature records in May, according to the Financial Times, quoting Peter Thorne, director of the ICARUS Climate Research Centre at Maynooth University in Ireland.
In London, on Tuesday 26 May, temperatures hit a record high for May of 35.1C at Kew Gardens – breaking the previous record of 34.8C, set just the day before.
This was more than 2C above the previous May temperature high of 32.8C recorded in 1922 and again in 1944, reported the Times.
The Associated Press added that the UK capital also recorded a rare “tropical night”, when temperatures did not fall below 20C overnight.
The Daily Telegraph reported that Wales and Northern Ireland also saw record-high temperatures, of 27.4C in Cardiff and 23.4C in Armagh, on Sunday.
As with the UK record, these were quickly surpassed. BBC News reported that temperatures hit 32.9C in Bute Park, Cardiff and 24.5C in Thomastown, County Fermanagh, on Tuesday.
BBC News quoted a spokesperson from the Met Office, who said:
“This heat would be exceptional in the UK even in mid-summer, let alone in May.”
The broadcaster added that the average temperature in the UK at the end of May is usually 14-20C.
The Associated Press reported that temperature records have also fallen across Europe.
This includes in France, where temperatures reached 36C on Monday in the country’s south-west and remained above 20C at night across much of the country. The newspaper Libération declared that “it has never been so hot, so early, in France”.
The Guardian reported that the weather agency Météo France said the heatwave could last through the week and bring temperatures as high as 39C in some areas in the country.
As well as the UK and France, other nations have been seeing temperatures soar. France24 reported that temperatures in Spain were expected to reach 38C, with Italy also facing high temperatures.
The Irish Times reported that the May high-temperature record was broken twice in Ireland on the same day, with 29.7C recorded in Carlow and then 30.5C at Shannon Airport on Tuesday.
Le Monde explained that a “heat dome” of warm air from northern Africa is behind the high temperatures across Europe. (See: What is driving the record-breaking heat?)
The Financial Times quoted ICARUS’s Thorne saying that the records being set in Europe, “particularly in the UK and France, are mind-bogglingly crazy”. He added:
“We have more than 100 years of observational records. To break the all-time May record by more than 2C…is hard to comprehend.”
What is driving the record-shattering heat?
The immediate driver of the extreme heat seen over Europe this week is a “heat dome”, according to Politico.
The outlet explained that the phenomenon is driven by “warm air moving up from northern Africa [that] has become trapped under a high-pressure system over western Europe”. It added:
“The effect is similar to that of a lid on a pot, with warm air forced downward and baking affected regions with prolonged, blistering heat.”
Spain’s El Correo explained that the phenomenon is “not a simple heatwave”, adding that such “high-pressure systems trapped over Europe are not usually seen before summer”.
However, many publications have linked the severity of the extreme heat to climate change. The Associated Press quoted ICARUS’s Thorne, who said:
“We know beyond a shadow of a doubt that heatwave events such as this have been made more likely and more severe due to climate change arising from our emissions of heat-trapping greenhouse gases.”
The Guardian quoted Dr Chloe Brimicombe, a researcher at the University of Oxford, who said:
“The record-breaking heat is a reminder of how climate change is impacting our lives in the UK. It highlights the urgency of recent calls for heat adaptation.”
France’s Le Figaro described the event as an “unequivocal sign of global warming”.
The Independent reported that the heatwave “has the fingerprints of climate change all over it”. Other outlets, including Inside Climate News and Scientific American, also covered the links between extreme heat and climate change.
BBC News noted that over the last 30 years, Europe has been warming by 0.56C per decade – more than twice the global average.
The outlet quoted Prof Erich Fischer, professor at the Institute for Atmospheric and Climate Science at ETH Zurich in Switzerland, who compared the record-breaking temperatures to setting a new record in sports.
He explained that “if someone beats a world record in high jump, you would expect them to beat it by one centimetre and not suddenly by 20, 30 centimetres”. Similarly, he said that in the case of temperature, you would expect new records to be broken by a fraction of a degree, rather than 2 or 3C.
However, the broadcaster explained that “when a relatively rare weather system, such as this week’s heat dome, comes around in a warming climate, the margin of record can be huge”.
Simon Stiell, the executive secretary of UN Climate Change, called the heatwave a “brutal reminder of the cost of global warming”, according to Politico.
The Guardian also quotes Stiell, who said:
“The science is clear that human-induced climate change is making these heatwaves more frequent and extreme”.
What are the impacts of the extreme heat?
The heatwave has already been linked to multiple deaths.
This included seven people in France, five of whom died by drowning and two who suffered heat-related deaths while competing in sporting events, said the Guardian.
Separately, the Guardian reported that at least nine people have died in the UK from “water-related incidents” during the heatwave.
France24 reported that “restrictions on outdoor work were imposed in parts of Italy” and that “farmers reported accelerated harvests as temperatures went beyond 30C across [south-west France]”.
The Guardian reported that tennis players at the French Open were “forced to adjust their games while trying to find their best level through obvious discomfort”, amid 33C temperatures in Boulogne-Billancourt, Paris, on Monday.
CNN added that, in the UK, “a wildfire broke out near Arthur’s Seat, a hill in Edinburgh, Scotland, and hundreds of properties in south-east England were left without water as demand spiked”.
BBC News reported on a warning from a chief nurse that hospitals in the south-west of England were busier than usual amid the heatwave.
BBC News reported that the UK saw a surge in emergency calls on Tuesday. The Daily Telegraph added that “Britain’s roads started melting and rail commuters were left stranded for hours”.
Meanwhile, the Guardian reported on a warning from climate campaigners that the government “urgently” needs to start installing air conditioning units in schools and care homes.
The extreme heat has also affected Europe’s renewable energy generation. Bloomberg said that “the heat dome has blocked clouds and fueled booming solar generation”, but added that “by clearing clouds and calming the atmosphere, the heat dome has had the opposite effect on wind speeds”.
How has the media responded?
The unseasonably high temperatures have caught the attention of news outlets in the UK, France and other affected nations.
Often, news stories were accompanied by photos of people relaxing at the beach, eating ice cream and swimming in the sea.
Such images of “fun in the sun” have often drawn criticism from climate researchers for “misrepresenting” the risks of heatwaves.
This choice of imagery – and the way right-leaning newspapers in the UK tend to focus on the positive aspects of hot weather – was highlighted by journalist and media critic Mic Wright in a Substack post. He wrote:
“Most British newspapers write about extremely hot weather with the tone of a frog in a boiling pot pretending it’s a jacuzzi.”
Despite blanket news coverage of the record heat in media outlets across western Europe, there has been relatively little commentary from their opinion pages.
No major UK newspapers have published editorials about the heat and there has been no space dedicated to it in the comment sections of the largest French and Spanish newspapers.
One exception in UK media was the Daily Mail’s climate-sceptic columnist Richard Littlejohn writing an article mocking heat-safety measures and warnings issued by the Met Office and the UK Health Security Agency (UKHSA).
In contrast, the Guardian published an article by Bill McGuire, professor emeritus of geophysical and climate hazards at University College London, warning of the dangers facing the UK as extreme heat becomes “the norm”. He wrote:
“We need, then, to face the fact that life in the 2050s is going to be very different from today, and act now. The sooner we recognise this and begin – as a nation – to prepare and adapt accordingly, the better we will be able to meet these enormous challenges to our everyday lives.”
Oliver Duff, editor-in-chief of the i newspaper, wrote that the UK is “emotionally underprepared”, as a nation, for the heat:
“Worries about climate change are forgotten in the giddy determination to enjoy our brief, unreliable summers, whichever month of the year they deign to visit.”
Writing in the Independent, journalist Kat Brown reflected on the Climate Change Committee’s recent advice to the UK government on adapting to climate change. She stressed the need to “take heatwaves seriously”.
James Wallace, chief executive of the charity River Action, was given a guest column in the Daily Express in which he wrote: “As the nation swelters in record-breaking temperatures, England is sleepwalking into a water crisis.”
In reference to water shortages and increasingly extreme weather, Wallace also emphasised that “this is climate breakdown in real time”.
The post Media reaction: UK and Europe’s ‘mind-boggling’ May heat and climate change appeared first on Carbon Brief.
Media reaction: UK and Europe’s ‘mind-boggling’ May heat and climate change
The odds of a new global temperature record being set within the next five years have increased further, as the return of the El Niño weather pattern could make 2027 the hottest year ever, the UN’s weather agency has warned.
The World Meteorological Organization (WMO)’s annual update predicts an 86% chance that at least one year between 2026 and 2030 will surpass 2024 as the warmest year on record – up from 80% in last year’s forecast.
Global average temperatures reached 1.55C above pre-industrial levels in 2024, when the last El Niño event supercharged human-made warming primarily caused by the greenhouse gas emissions generated through burning fossil fuels.
El Niño to supercharge heat in 2027
Meteorologists expect El Niño – the natural climate phenomenon characterised by unusually warm sea-surface temperatures in the eastern Pacific Ocean – to start developing as early as this month. Some forecasters say that this time around the event could become particularly powerful.
Leon Hermanson, the lead author of the WMO report, said the prediction of El Niño for the second half of 2026 “increases the chances of the following year, 2027, being the next record-breaking year”.
Researchers warn that a strong El Niño risks supercharging extreme weather conditions, contributing to more severe wildfires and droughts in some regions and storms and floods in others.
Scientists warn El Niño could intensify climate extremes in 2026
The UN agency says there is a 91% chance that the key 1.5C warming threshold will be temporarily exceeded again for at least one year between 2026 and 2030. An overshoot in a single year does not mean that the most ambitious global warming goal enshrined in the Paris Agreement has been lost. But the UN conceded last year that a “multi-decadal” breach is very likely to happen within the next decade.
‘Astonishing’ early heatwave in Europe
Western Europe has already been gripped by an early-season heatwave this month, with countries including the UK, France and Ireland recording their hottest May temperatures ever.
“Temperatures on this scale were once exceptional even at the height of summer,” said Friederike Otto, professor of climate science at Imperial College London. “Seeing 35C in the UK during spring is absolutely astonishing, but the science is very clear – climate change makes these heatwaves hotter, longer, and far more frequent”.
She added that “temperature records will continue to tumble until we fundamentally halt global emissions and reach net zero”.
In India, extreme heat in recent weeks has also threatened mango and other crops and pushed up power demand to an all-time high as people switch on air-conditioning, while pilgrims in Mecca have conducted their rituals during the annual Hajj pilgrimage in scorching temperatures.
The post El Niño expected to bring next record-hot year as soon as 2027 appeared first on Climate Home News.
El Niño expected to bring next record-hot year as soon as 2027
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