As this year’s United Nations climate summit, COP28, continues to deliberate the most pressing climate change concerns, we’re sharing the top updates impacting the future of climate finance. Here are the top four highlights that stand out.
Oil and Gas Charter Aims 2050 Zero Methane
Saudi Arabia’s Aramco and the UAE’s ADNOC, along with 29 other national oil companies, signed a non-binding agreement to target zero methane emissions and end routine flaring by 2030.
Overall, 50 oil and gas companies, which represents 40% of global production, committed to decarbonize their operations by 2050.
While Aramco and ADNOC have announced carbon reduction objectives, these targets don’t include emissions from customer fuel use. Sultan Al Jaber, ADNOC’s CEO and CO28 President, emphasized the need for more action, despite many national oil companies setting net zero emissions 2050 targets.
This initiative, called the Oil and Gas Decarbonization Charter, saw companies like PetroChina, Brazil’s Petrobras, TotalEnergies of France, ExxonMobil of the US, and BP and Shell from Britain signing on. However, unlike COP28 decisions, these commitments are voluntary.
Prepared ahead of COP28, these pledges aim to expedite the energy industry’s decarbonization. Yet, a non-profit representative noted that voluntary commitments from the industry may not be enough to address climate change adequately. What is more crucial is having government policies in place to drive swift and equitable transition away from fossil fuels.
Canada Aims to Slash Methane Emissions by 75%
Canada has shared a new plan to cut methane pollution from its oil and gas industry by at least 75%. The potent gas contributed about 13% of Canada’s total emissions in 2021.
The country’s Environment Minister made this announcement on the sidelines of COP28.
Canada ranks among the top oil producers globally, with most methane emissions coming from oil and gas, agriculture, and waste.
Two years ago, the nation promised to create a plan to significantly lower methane emissions from oil and gas by 2030, aligning with the Global Methane Pledge.
The new draft involves stricter rules for Canada’s oil and gas sector, following global suggestions. It aims to stop routine venting and flaring, which emit methane, and introduce better leak detection methods.
The federal government estimates that these new regulations will reduce emissions by 217 million metric tonnes of CO2e from 2027 to 2040. The government also plans to invest $30 million in a Methane Centre of Excellence.
The proposed regulations also include third-party inspections and safety exemptions. However, Alberta and Saskatchewan, provinces rich in oil and gas, criticized the plan, calling it too costly and challenging. They argue that the federal government is intruding on provincial control.
The draft regulations will roll out in 2027, but opposition from the provinces may lead to further discussions and revisions.
Bhutan is The First National Registry Under CAD Trust
The Kingdom of Bhutan has become the inaugural national registry to achieve full integration with the Climate Action Data Trust (CAD Trust) Metadata Layer, marking a significant milestone announced at COP28.
This development positions Bhutan as a leader in regional climate action and aligns with the Paris Agreement’s Article 6 objectives.
Launched in December 2022, CAD Trust is an initiative led by the World Bank, the International Emissions Trading Association (IETA), and the Government of Singapore. It operates as a decentralized blockchain-based platform, aiming to promote transparent carbon market accounting, in accordance with the Paris Agreement.
- READ MORE: Climate Action Data Trust Launched
Bhutan, known for its vast forests occupying over 72% of its land, holds a pivotal role as a ‘carbon bank’. The country contributes to global biodiversity and carbon sequestration.
As the world’s first carbon-negative country, Bhutan’s integration into CAD Trust underscores its commitment to climate mitigation and proactive measures.
This integration ensures Bhutan’s climate mitigation efforts adhere to Article 6 guidelines by leveraging innovative digital infrastructure, including blockchain technology. This is to safeguard the accuracy of carbon credit data and prevent duplication, a critical principle of Article 6.
The development marks the beginning of an expanding network for CAD Trust. The platform will connect with other national and independent carbon market standards over the coming weeks and months.
Tanzania’s Major Carbon Credit Deal
Tanzania has signed a significant carbon credit deal at COP28 covering 6 national parks across 1.8 million hectares. Parks included are Burigi-Chato, Katavi Plains, Ugalla River, Mkomazi, Gombe Stream, and Mahale Mountains.
The agreement involves Tanzania’s national park agency, Tanapa, and a local company, Carbon Tanzania. The country boasts 48 million hectares of reserved forests, which offers significant opportunities for carbon trading.
In a move coinciding with COP28, the deal aims to trade carbon credits while also preserving and managing the national parks, safeguarding their natural ecosystems and wildlife. This move positions the country as a key player in Africa’s carbon credit market.
Mohammed Enterprises Tanzania Limited, led by businessman Mohammed Dewji, will provide funding for the project. This deal follows an earlier preliminary agreement encompassing 8.1 million hectares in Tanzania, also directed towards carbon credit initiatives. That area represents about 8% of the East African nation’s total land mass.
However, these deals have faced criticism for their potential impact on local lands and communities, drawing concern about neocolonialism. While developers assert that their projects follow stringent regulations and offer community benefits, critics question the agreements’ true impact.
Despite the criticism, these agreements could see vast land areas dedicated for carbon credit projects across Africa once finalized.
As COP28 unfolds, pivotal strides in carbon credit market and climate finance are apparent, spanning from oil and gas industry pledges to national initiatives and global registry integration. These developments emphasize the imperative role of collaborative efforts and policy implementations in tackling climate change.
The post The Top 4 Important Highlights at COP28 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.
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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.
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