The US government is seeking to bolster support for carbon offsets by putting its weight behind industry-led efforts to reform a market that has faced growing criticism.
The Biden administration has laid out for the first time a set of principles that attempt to define how “high-integrity” carbon credits can play “a meaningful role” in helping cut greenhouse gas emissions and channelling “a significant amount of private capital” to combat climate change.
A 12-page policy document released by the US government on Tuesday includes provisions to ensure that carbon credit projects deliver real emission reductions, avoid harming local communities and encourage companies to decarbonise their own operations before buying offsets.
But it also recommends that businesses should be allowed to use carbon credits to cancel out some of the emissions generated by their suppliers and customers, known as “Scope 3”. A similar move by the board of the Science Based Targets initiative (SBTi), a leading arbiter of corporate net zero plans, sparked a major backlash from staff last month.
The US government guidelines are neither binding nor enforceable. However, proponents hope they will reinforce a number of ongoing initiatives led by carbon credit developers, buyers and green groups to raise standards and boost the role of carbon markets in climate and nature protection.
Troubled market
Polluting companies, including major fossil fuel producers and airlines, spent an estimated $1.7 billion last year on voluntary carbon offsets meant to compensate their direct emissions by funding climate-friendly activities elsewhere, such as planting trees or rolling out renewable energy sources.
But a series of revelations questioning the environmental and social benefits claimed by some developers and users of carbon credits have dented confidence in the market.
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Scientific studies and investigative reports – including by Climate Home – have found that a growing number of projects failed to deliver the emission reductions promised. NGOs have also denounced instances of human rights abuse and environmental damage caused by carbon-offsetting activities.
“Voluntary carbon markets are a huge distraction and a waste of time and resources,” said Mohamed Adow, the Nairobi-based founder of the Power Shift Africa think-tank. “It’s sad to see politicians in the Global North desperately trying to find any way they can to avoid actually just cutting their carbon emissions,” he added.
Every tool needed
In its announcement, the US government acknowledged the shortcomings in voluntary carbon markets (VCMs), saying that “in too many instances” credits do not live up to the high standards required.
“For good reasons a lot of folks outside this room are skeptical,” National Climate Advisor Ali Zaidi told attendees of the policy launch in Washington. “[They are] scared off by news stories of things that went wrong and gloss of greenwash.”
US National Climate Advisor Ali Zaidi speaks during a press briefing at the White House in Washington, U.S., January 26, 2024. REUTERS/Julia Nikhinson
But, he added, that should not be seen as “an excuse to slow down but as an occasion to speed up” and do things better.
The Biden administration wants to be a leader in guiding “the development of VCMs toward high-quality and high-efficacy decarbonization actions”, the White House said. Its principles closely align with those of industry-led governance bodies that are trying to revamp the carbon market.
The Integrity Council for the Voluntary Carbon Market (ICVCM) is currently assessing project methodologies as part of its efforts to establish the first independent global benchmark for “high-integrity” carbon offsets, known as the “Core Carbon Principles”.
“We are in a climate emergency and we need every tool in the box to meet the 1.5°C [global warming] target,” said ICVCM Council Chair Annette Nazareth. “High-integrity carbon credits can mobilise private finance at scale for projects to reduce and remove billions of tonnes of emissions that would not otherwise be viable.”
Substitute for government aid
As most of the world’s largest carbon offsetting projects are based in the Global South, many rich governments view the market favourably as a way of getting dollars to developing nations without tapping into public budgets.
That is the case in the US where climate funding has fallen victim to political polarisation. President Joe Biden promised to increase international climate finance to over $11.4 billion per year by 2024. But Congress approved only a fraction of that as part of this year’s government budget: $1 billion of a spending package totalling $1.59 trillion.
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The White House’s Zaidi said voluntary carbon markets can move “mountains of capital” if their integrity is improved. Better regulation could expand the market from its current size of around $1.7 billion to $1.1 trillion by 2050, according to predictions by BloombergNEF.
Gilles Dufrasne, global policy lead at Carbon Market Watch, told Climate Home the US government will need to “walk the talk and ensure that its promises of transparency and integrity are followed up by actions”.
“There is currently no public data to measure how much finance is flowing to climate action through carbon credits and how much is staying in the pockets of Global North intermediaries and consultants,” he added.
International negotiations
The US government is also a strong proponent of private sector-led carbon credit initiatives in international climate circles.
In discussions at the COP28 climate summit last year on setting the rules for a new carbon market governed by the United Nations, Washington championed what observers described as a “light-touch, no-frills” approach that could hand a prominent role to private-sector players from the voluntary market.
The move was rejected by the European Union, causing a breakdown in the negotiations, which will resume at the mid-year UN climate talks in Bonn starting next week.
“By undermining the multilateral process […] and placing more faith in private sector-governed voluntary carbon markets, the US appears to be shirking its responsibilities for financing climate action and offloading them onto the private sector,” said Trishant Dev, a carbon market expert at the Delhi-based Centre for Science and Environment.
(Reporting by Matteo Civillini and Joe Lo; editing by Megan Rowling)
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US government backs the carbon credit industry’s push to fix itself
Climate Change
Curbing methane is the fastest way to slow warming – but we’re off the pace
Gabrielle Dreyfus is chief scientist at the Institute for Governance and Sustainable Development, Thomas Röckmann is a professor of atmospheric physics and chemistry at Utrecht University, and Lena Höglund Isaksson is a senior research scholar at the International Institute for Applied Systems Analysis.
This March scientists and policy makers will gather near the site in Italy where methane was first identified 250 years ago to share the latest science on methane and the policy and technology steps needed to rapidly cut methane emissions. The timing is apt.
As new tools transform our understanding of methane emissions and their sources, the evidence they reveal points to a single conclusion: Human-caused methane emissions are still rising, and global action remains far too slow.
This is the central finding of the latest Global Methane Status Report. Four years into the Global Methane Pledge, which aims for a 30% cut in global emissions by 2030, the good news is that the pledge has increased mitigation ambition under national plans, which, if fully implemented, could result in the largest and most sustained decline in methane emissions since the Industrial Revolution.
The bad news is this is still short of the 30% target. The decisive question is whether governments will move quickly enough to turn that bend into the steep decline required to pump the brake on global warming.
What the data really show
Assessing progress requires comparing three benchmarks: the level of emissions today relative to 2020, the trajectory projected in 2021 before methane received significant policy focus, and the level required by 2030 to meet the pledge.
The latest data show that global methane emissions in 2025 are higher than in 2020 but not as high as previously expected. In 2021, emissions were projected to rise by about 9% between 2020 and 2030. Updated analysis places that increase closer to 5%. This change is driven by factors such as slower than expected growth in unconventional gas production between 2020 and 2024 and lower than expected waste emissions in several regions.
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This updated trajectory still does not deliver the reductions required, but it does indicate that the curve is beginning to bend. More importantly, the commitments already outlined in countries’ Nationally Determined Contributions and Methane Action Plans would, if fully implemented, produce an 8% reduction in global methane emissions between 2020 and 2030. This would turn the current increase into a sustained decline. While still insufficient to reach the Global Methane Pledge target of a 30% cut, it would represent historical progress.
Solutions are known and ready
Scientific assessments consistently show that the technical potential to meet the pledge exists. The gap lies not in technology, but in implementation.
The energy sector accounts for approximately 70% of total technical methane reduction potential between 2020 and 2030. Proven measures include recovering associated petroleum gas in oil production, regular leak detection and repair across oil and gas supply chains, and installing ventilation air oxidation technologies in underground coal mines. Many of these options are low cost or profitable. Yet current commitments would achieve only one third of the maximum technically feasible reductions in this sector.
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Agriculture and waste also provide opportunities. Rice emissions can be reduced through improved water management, low-emission hybrids and soil amendments. While innovations in technology and practices hold promise in the longer term, near-term potential in livestock is more constrained and trends in global diets may counteract gains.
Waste sector emissions had been expected to increase more rapidly, but improvements in waste management in several regions over the past two decades have moderated this rise. Long-term mitigation in this sector requires immediate investment in improved landfills and circular waste systems, as emissions from waste already deposited will persist in the short term.
New measurement tools
Methane monitoring capacity has expanded significantly. Satellite-based systems can now identify methane super-emitters. Ground-based sensors are becoming more accessible and can provide real-time data. These developments improve national inventories and can strengthen accountability.
However, policy action does not need to wait for perfect measurement. Current scientific understanding of source magnitudes and mitigation effectiveness is sufficient to achieve a 30% reduction between 2020 and 2030. Many of the largest reductions in oil, gas and coal can be delivered through binding technology standards that do not require high precision quantification of emissions.
The decisive years ahead
The next 2 years will be critical for determining whether existing commitments translate into emissions reductions consistent with the Global Methane Pledge.
Governments should prioritise adoption of an effective international methane performance standard for oil and gas, including through the EU Methane Regulation, and expand the reach of such standards through voluntary buyers’ clubs. National and regional authorities should introduce binding technology standards for oil, gas and coal to ensure that voluntary agreements are backed by legal requirements.
One approach to promoting better progress on methane is to develop a binding methane agreement, starting with the oil and gas sector, as suggested by Barbados’ PM Mia Mottley and other leaders. Countries must also address the deeper challenge of political and economic dependence on fossil fuels, which continues to slow progress. Without a dual strategy of reducing methane and deep decarbonisation, it will not be possible to meet the Paris Agreement objectives.
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The next four years will determine whether available technologies, scientific evidence and political leadership align to deliver a rapid transition toward near-zero methane energy systems, holistic and equity-based lower emission agricultural systems and circular waste management strategies that eliminate methane release. These years will also determine whether the world captures the near-term climate benefits of methane abatement or locks in higher long-term costs and risks.
The Global Methane Status Report shows that the world is beginning to change course. Delivering the sharper downward trajectory now required is a test of political will. As scientists, we have laid out the evidence. Leaders must now act on it.
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Curbing methane is the fastest way to slow warming – but we’re off the pace
Climate Change
World leaders invited to see Pacific climate destruction before COP31
The leaders and climate ministers of governments around the world will be invited to meetings on the Pacific islands of Fiji, Palau and Tuvalu in the months leading up to the COP31 climate summit in November.
Under a deal struck between Pacific nations, Fiji will host the official annual pre-COP meeting, at which climate ministers and negotiators discuss contentious issues with the COP Presidency to help make the climate summit smoother.
This pre-COP, expected to be held in early October, will include a “special leaders’ component” hosted in neighbouring Tuvalu – 2.5-hour flight north – according to a statement issued by the Australian COP31 President of Negotiations Chris Bowen on LinkedIn on Thursday.
Bowen said this “will bring a global focus to the most pressing challenges facing our region and support investment in solutions which are fit for purpose for our region.” Australia will provide operational and logistical support for the event, he said.
Like many Pacific island nations, Tuvalu, which is home to around 10,000 people, is threatened by rising sea levels, as salt water and waves damage homes, water supplies, farms and infrastructure.
Dozens of heads of state and government usually attend COP summits, but only a handful take part in pre-COP meetings. COP31 will be held in the Turkish city of Antalya in November, after an unusual compromise deal struck between Australia and Türkiye.
In addition, Pacific country Palau will host a climate event as part of the annual Pacific Islands Forum (PIF) – which convenes 18 Pacific nations – in August.
Palau’s President Surangel Whipps Jr told the Australian Broadcasting Corporation (ABC) that this meeting would be a “launching board” to build momentum for COP31 and would draw new commitments from other countries to help Pacific nations cut emissions and adapt to climate change.
“At the PIF our priorities are going to be 100 per cent renewables, the ocean-climate nexus and … accelerating investments that build resilience from climate change,” he told ABC.
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World leaders invited to see Pacific climate destruction before COP31
Climate Change
There is hope for Venezuela’s future – and it isn’t based on oil
Alejandro Álvarez Iragorry is a Venezuelan ecologist and coordinator of Clima 21, an environmental NGO. Cat Rainsford is a transition minerals investigator for Global Witness and former Venezuela analyst for a Latin American think tank.
In 1975, former Venezuelan oil minister Juan Pablo Pérez Alfonzo gave a now infamous warning.
“Oil will bring us ruin,” he declared. “It is the devil’s excrement. We are drowning in the devil’s excrement.”
At the time, his words seemed excessively gloomy to many Venezuelans. The country was in a period of rapid modernisation, fuelled by its booming oil economy. Caracas was a thriving cultural hotspot. Everything seemed good. But history proved Pérez right.
Over the following decades, Venezuela’s oil dependence came to seem like a curse. After the 1980s oil price crash, political turmoil paved the way for the election of populist Hugo Chávez, who built a socialist state on oil money, only for falling prices and corruption to drive it into ruin.
By 2025, poverty and growing repression under Chávez’s successor Nicolás Maduro had forced nearly 8 million Venezuelans to leave the country.
Venezuela is now at a crossroads. Since the US abducted Maduro on January 3 and seized control of the country’s oil revenues in a nakedly imperial act, all attention has been on getting the country’s dilapidated oil infrastructure pumping again.
But Venezuelans deserve more than plunder and fighting over a planet-wrecking resource that has fostered chronic instability and dispossession. Right now, 80% of Venezuelans live below the poverty line. Venezuelans are desperate for jobs, income and change.
Real change, though, won’t come through more oil dependency or profiteering by foreign elites. Instead, it is renewable energy that offers a pathway forward, towards sovereignty, stability and peace.
Guri Dam and Venezuela’s hydropower decline
Venezuela boasts some of the strongest potential for renewable energy generation in the region. Two-thirds of the country’s own electricity comes from hydropower, mostly from the massive Guri Dam in the southern state of Bolívar. This is one of the largest dams in Latin America with a capacity of over 10 gigawatts, even providing power to parts of Colombia and Brazil.
Guri has become another symbol of Venezuela’s mismanagement. Lack of diversification caused over-reliance on Guri for domestic power, making the system vulnerable to droughts. Poor maintenance reduced Guri’s capacity and planned supporting projects such as the Tocoma Dam were bled dry by corruption. The country was left plagued by blackouts and increasingly turned to dirty thermoelectric plants and petrol generators for power.
Today, industry analysis suggests that Venezuela is producing at about 30% of its hydropower capacity. Rehabilitating this neglected infrastructure could re-establish clean power as the backbone of domestic industry, while the country’s abundant river system offers numerous opportunities for smaller, sustainable hydro projects that promote rural electrification.


Venezuela also has huge, untapped promise in wind power that could provide vital diversification from hydropower. The coastal states of Zulia and Falcón boast wind speeds in the ideal range for electricity generation, with potential to add up to 12 gigawatts to the grid. Yet planned projects in both states have stalled, leaving abandoned turbines rusting in fields and millions of dollars unaccounted for.
Solar power is more neglected. One announced solar plant on the island of Los Roques remains non-functional a decade later, and a Chávez-era programme to supply solar panels to rural households ground to a halt when oil prices fell. Yet nearly a fifth of the country receives levels of solar radiation that rival leading regions such as northern Chile.
Developing Venezuela’s renewables potential would be a massive undertaking. Investment would be needed, local concerns around a just and equitable transition would have to be navigated and infrastructure development carefully managed.
Rebuilding Venezuela with a climate-driven energy transition
A shift in political vision would be needed to ensure that Venezuela’s renewable energy was not used to simply free up more oil for export, as in the past, but to power a diversified domestic economy free from oil-driven cycles of boom and bust.
Ultimately, these decisions must be taken by democratically elected leaders. But to date, no timeline for elections has been set, and Venezuela’s future hangs in the balance. Supporting the country to make this shift is in all of our interests.
What’s clear is that Venezuela’s energy future should not lie in oil. Fossil fuel majors have not leapt to commit the estimated $100 billion needed to revitalise the sector, with ExxonMobil declaring Venezuela “uninvestable”. The issues are not only political. Venezuela’s heavy, sour crude is expensive to refine, making it dubious whether many projects would reach break-even margins.
Behind it all looms the spectre of climate change. The world must urgently move away from fossil fuels. Beyond environmental concerns, it’s simply good economics.


Recent analysis by the International Renewable Energy Agency finds that 91% of new renewable energy projects are now cheaper than their fossil fuel alternatives. China, the world’s leading oil buyer, is among the most rapid adopters.
Tethering Venezuela’s future to an outdated commodity leaves the country in a lose-lose situation. Either oil demand drops and Venezuela is left with nothing. Or climate change runs rampant, devastating vulnerable communities with coastal loss, flooding, fires and heatwaves. Meanwhile, Venezuela remains locked in the same destructive economic swings that once led to dictatorship and mass emigration. There is another way.
Venezuelans rightfully demand a political transition, with their own chosen leaders. But to ensure this transition is lasting and stable, Venezuela needs more – it needs an energy transition.
The post There is hope for Venezuela’s future – and it isn’t based on oil appeared first on Climate Home News.
There is hope for Venezuela’s future – and it isn’t based on oil
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