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What Does the New VCMI Code Mean for Carbon Credit Usage?

The carbon credit/carbon offset market has been a topic of both celebration and contention. Purchasing carbon credits can fund climate benefit projects like reforestation that ultimately help the world mitigate climate change. Yet the lack of global regulatory clarity has coincided with confusion, risk, and sometimes even deception within the voluntary carbon market.

However, new rules and universal best practices are emerging in ways that will:

  • Improve quality within voluntary carbon markets
  • Increase businesses’ confidence in funding climate benefit projects
  • Bring clarity to consumers and other stakeholders around companies’ sustainability credentials

One of the most significant developments in this area has been the June 2023 release of the Voluntary Carbon Markets Integrity Initiative (VCMI) Claims Code of Practice. While not a panacea, this code is an important step forward toward companies being able to reliably use carbon credits in ways that are aligned with scientific best practices.

What Is the VCMI Claims Code of Practice?

Following a provisional release last year, the VCMI’s new Claims of Code of Practice specifies how businesses can make trustworthy claims related to the use of carbon credits in ways that are aligned with the Paris Agreement.

The code includes four steps to make VCMI Claims:

1) Comply with VCMI foundational criteria

To start, businesses that voluntarily comply with the code need to meet foundational criteria, such as setting science-based near-term emissions reduction targets, along with publicly committing to reaching net zero by 2050.

However, reducing emissions and reaching net zero isn’t just a matter of buying carbon credits to offset emissions. While there’s flexibility in terms of which net zero framework to use, companies have to disclose “globally recognized sustainability frameworks or guidance” they’re using, VCMI explains.

Under the Science Based Targets initiative (SBTi), for example, carbon credits don’t count as reductions in terms of reaching near-term targets. SBTi’s Corporate Net-Zero Standard also says that most companies need to cut 90% or more of emissions, and then use permanent carbon removal and storage to offset residual emissions.

2) Choose a VCMI Claim

After meeting foundational criteria, businesses can make one of three VCMI Claims. The three levels correspond to companies purchasing and retiring high-quality carbon credits equal to the following percentages of their remaining emissions for the most recent reporting year:

  • VCMI Platinum: 100% or more
  • VCMI Gold: 60% to < 100%
  • VCMI Silver: 20% to < 60%

Again, these credits are not a substitute for emissions reductions; they must be used “to finance additional climate mitigation” while the company also works toward meeting near-term emissions reduction targets, as VCMI explains.

3) Meet Carbon Credit Usage and Quality Requirements

When using carbon credits to make VCMI Claims, companies also need to follow certain requirements. For one, carbon credits will need to be CCP-approved when available, meaning they meet the standards of the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles.

Companies also have to disclose details about the carbon credits they use, like project IDs and methodologies.

4) Get Third-Party Assurance

Lastly, companies will need to get independent, third-party assurance that they’re meeting the requirements for making VCMI claims. This assurance will need to adhere to the VCMI Monitoring Reporting & Assurance (MRA) Framework, which is set to be published in November 2023.

Carbon Credit Usage Carbon Gas Emissions

What Are the Benefits of Making a VCMI Claim?

By following these rules and making VCMI claims, your business can communicate to stakeholders that you’re using carbon credits and working toward net zero in a way that’s aligned with reaching the Paris Agreement goals.

Rather than stating that your business is carbon neutral solely by way of carbon offsets, for example, you might state that your business is VCMI Platinum, signifying that you’re funding climate benefit projects while working toward science-based emissions reductions.

Taking this approach, rooted in climate science, can help win over doubters who are put off by low-quality carbon credits plaguing the voluntary carbon market.

Bad actors can sour the market, but new standards, like those set by the VCMI and ICVCM, are helping to change stakeholder perceptions while supporting important goals, like trying to limit global temperature increases to 1.5 degrees Celsius.

Part of the debate over carbon credits is that some stakeholders see global climate regulation as the only way forward. If countries and companies were aggressively regulated and taxed in order to meet the Paris Agreement goals, then the carbon credit market as we know it might not be necessary.

The reality, however, is that we’re closing in on a decade passing since the Paris Agreement. The climate picture is arguably bleaker than it was then, as evidenced by the most recent IPCC report. The political will to meet these goals in their entirety just doesn’t seem to be there, so supplements like funding climate benefit projects to meet VCMI Claims should be taken seriously.

What Will Happen to Carbon Markets Going Forward?

The new VCMI rules are an important step for carbon markets, and other organizations are also moving forward with related rules around carbon credits and climate claims.

For example, the U.S. Commodity Futures Trading Commission (CFTC) is cracking down on fraud in carbon markets, such as double counting and fraudulent statements about carbon credit terms.

While that might sound negative for carbon markets at first glance, going after bad actors could help bring confidence back to high-quality carbon credits. Highly regulated securities like publicly traded stocks give investors confidence that they’re getting what they pay for when they buy shares, and ideally the same should happen in carbon markets.

New disclosure standards from the International Sustainability Standards Board (ISSB) should also help. As part of these standards (which regulatory agencies around the world could use as a model for future regulation), companies need to disclose how carbon credits fit into any net greenhouse gas emissions targets.

Carbon Credit Usage Industrial Plant

So, these types of frameworks could bring further confidence to carbon markets, as consumers, investors, and others will be able to more clearly understand how carbon credits fit into a company’s operations.

Rather than assuming a company is green washing when using terms like carbon neutral, for example, they will be able to make more informed judgments.

If a business has not been able to cut emissions significantly but still invests heavily in climate benefit projects, that does not mean the business is inherently sustainable. But stakeholders at least have the clarity to decide whether they want to engage with that business vs. others that might be polluting without also giving back as much to climate mitigation efforts.

Meanwhile, businesses that can both cut emissions and fund climate benefit projects, like those that make VCMI claims, can stand out from competitors that lack the same veracity of their sustainability efforts.

Some of these rules and standards will take time to solidify, but businesses that want to get a head start on measuring, managing, and marketing their carbon footprint strategies can do so through Terrapass and our vetted, high-quality partners.

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Google’s Carbon Credit Expansion with Frontier’s $33M Bet on Rock Weathering

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Google is making another major move in carbon removal by participating in Frontier’s $33 million offtake agreement with Eion Carbon. This deal plans to cut about 79,000 tons of CO₂ by 2030. It uses enhanced rock weathering (ERW), a natural way to boost carbon absorption in rocks.

Reilly O’Hara, Program Manager, Carbon Removal at Google, remarked on this deal, noting:

“This deal isn’t just about removing CO2 – it’s also about building a robust, transparent understanding of enhanced weathering’s potential. By integrating with existing agricultural systems and prioritizing data sharing, Eion will help pave the way for scalable, impactful climate solutions.” 

What is Enhanced Rock Weathering?

Eion deploys olivine, a fast-weathering rock, on Southern and Midwestern United States farmlands. This method permanently captures CO₂ while improving soil health and crop yields.

ERW stands out from traditional carbon capture methods. It fits easily into current farming practices, making it a cost-effective and scalable solution.

ERW involves spreading crushed silicate rocks, like olivine, onto farmland. When these rocks interact with rainwater, they absorb CO₂ from the air, converting it into a stable form stored in the soil or washed into the ocean.

  • Research shows that spreading crushed silicate rocks on U.S. farms could capture 0.16 to 0.30 gigatons of CO₂ each year by 2050.

Atmospheric CDR by Enhanced Weathering with US Agriculture

Source: Nature

Eion’s research extends beyond carbon capture. The company is conducting deep soil core measurements to better understand how rock-soil interactions influence carbon storage. This data will be made public, advancing the entire field of enhanced weathering.

Eion carbon removal
Source: Eion

Visit the company’s website here to learn about its step-by-step ERW processes and how they ensure each carbon credit represents real reductions.

Farming Meets Climate Tech: The Unexpected Perks for Agriculture

Agriculture plays a significant role in both emitting and removing carbon. Soil carbon sequestration, biochar, and enhanced rock weathering are emerging as promising techniques to make farming better for the climate.

  • Soil Carbon Sequestration. Certain farming practices, like no-till farming and cover cropping, can store carbon in the soil for decades. These methods can absorb up to 5 gigatons of CO₂ annually, according to the IPCC.
  • Biochar. This charcoal-like substance, made from plant waste, locks carbon into the soil while improving fertility.
  • Enhanced Rock Weathering (ERW). By applying reactive minerals like olivine to farmland, ERW offers a dual benefit—capturing CO₂ while enhancing soil productivity.

Benefits for Farmers

Farmers in the Southern and Midwestern U.S. are choosing Eion’s olivine-based product over traditional agricultural lime. This substitution offers several advantages:

  • Cost-Effective: Revenue from selling carbon removal credits allows Eion to offer its product at a lower price than conventional lime.
  • Soil Improvement: Olivine helps neutralize acidic soils, enhancing plant growth and increasing crop yields.
  • Environmental Impact: By integrating ERW into their practices, farmers contribute to reducing atmospheric CO₂ levels, playing a direct role in combating climate change.

The Role of Frontier

Frontier is a group that includes Google, Stripe, and Shopify. It helps invest in carbon removal technologies. Frontier pools resources to back innovative solutions, such as Eion’s ERW. This helps speed up their development and deployment. This collaborative effort underscores the importance of joint action in addressing climate change.

Google’s investment in ERW through Eion supports the transition toward carbon-smart agriculture. This approach could transform the agricultural sector into a major carbon sink, helping offset emissions from other industries.

Beyond Offsets: Google’s History of Carbon Removal Efforts 

Google has long been a leader in sustainability and carbon reduction. Since 2007, the company has been carbon-neutral, meaning it offsets all of its emissions by purchasing carbon credits. Here are its major carbon removal deals:

Google contracted rarbon removal portfolio
Source: Google

In 2020, Google promised to run on 100% carbon-free energy by 2030. This goal aims to cut emissions from its data centers and offices completely. Past and ongoing initiatives include:

  • Investment in Renewable Energy – Google has signed power purchase agreements (PPAs) to build solar and wind farms worldwide.
  • Direct Air Capture (DAC) – Google has previously supported carbon removal technologies like DAC, which captures CO₂ directly from the atmosphere.
  • Forest Conservation Projects – The company has funded reforestation efforts to absorb CO₂ and restore ecosystems.
  • Carbon Removal Credits – Google has backed early-stage carbon credit markets, supporting projects that remove CO₂ from the atmosphere.

Google carbon removal purchases ERW

The Frontier-Eion deal is part of Google’s broader commitment to carbon removal. This initiative removes CO₂ permanently, unlike traditional offsets. It fits well with Google’s long-term climate strategy.

Google’s Climate Strategy

Google aims to achieve net-zero emissions across its operations and supply chain by 2030. Now, it aims to eliminate emissions completely instead of just offsetting them.

Google carbon emission reductions 2023 progress
Source: Google

A key goal is running on 100% carbon-free energy (CFE) 24/7 by 2030. Currently, 64% of Google’s energy use is matched with clean sources, with some regions exceeding 90%. The tech giant has also signed 80+ renewable energy deals, totaling over 9 GW of clean energy capacity.

Google has invested $200 million in early-stage carbon removal projects. The company is pushing suppliers to adopt clean energy. It is also using AI to boost energy efficiency in its data centers.

These efforts position Google as a leader in corporate climate action, setting a standard for net-zero goals worldwide.

Carbon Capture at Scale: The Challenges and Opportunities Ahead

While ERW presents a promising avenue for carbon removal, several challenges remain. Using ERW on a large scale needs careful planning. This includes sourcing, transporting, and applying large amounts of crushed rock.

Also, accurately quantifying the amount of CO₂ removed through ERW is complex. Ongoing research aims to develop robust monitoring, reporting, and verification (MRV) frameworks to ensure transparency and effectiveness.

Lastly, reducing the costs associated with ERW is essential for widespread adoption. New methods in mining, grinding, and application can boost economic viability. 

As climate issues increase, big tech firms like Google are stepping up to manage their emissions. Its partnership with Eion through Frontier’s $33 million offtake deal marks a major advancement in carbon removal. This deal highlights the importance of high-quality, verifiable carbon removal solutions. It also underscores the potential for agriculture to play a key role in climate action. 

With Google’s leadership, enhanced weathering and other carbon removal technologies could scale up to remove millions of tons of CO₂ in the coming years. As the voluntary carbon market grows, initiatives like this will be crucial in the fight against climate change and the journey toward a net-zero future.

The post Google’s Carbon Credit Expansion with Frontier’s $33M Bet on Rock Weathering appeared first on Carbon Credits.

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Oklo Advances Its Nuclear Reactor Licensing Despite $73.6M Net Loss

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oklo

Oklo’s earnings took a hit as the company reported a net loss of $73.6 million for 2024. The majority of it came from a $52.8 million operating loss. The company’s stock dropped after the report, but analysts stressed that its long-term vision matters more than the numbers. However, the company’s nuclear endeavors continue to shine.

It’s working with the U.S. Nuclear Regulatory Commission (NRC) to prepare for its upcoming license application to advance its nuclear technology.

oklo earnings
Source: Oklo

As part of this process, the NRC will review Oklo’s licensing materials in advance through a Pre-Application Readiness Assessment. This step helps both Oklo and the NRC get ready for a smoother and more efficient approval process for the Aurora Powerhouse at Idaho National Laboratory.

Oklo Advances Regulatory Approvals for Aurora Reactor

Oklo has been working with the NRC since 2016 to navigate the regulatory path for its advanced reactors. The company has already secured approval for its quality assurance program and made progress in areas like safety analysis, environmental planning, and operational procedures.

The company plans to submit its formal COLA later in 2025, with more applications in the pipeline. The license will cover the design, construction, and operation of the Aurora Powerhouse at INL.

Notably, Oklo aims to have its first Aurora powerhouse up and running by late 2027. The company secured over 14 GW in power orders, which indicates a strong demand for its nuclear technology.

NRC Readiness Assessment Starts in March 2025

The NRC will start reviewing Oklo’s plans in late March 2025. In this first step, they’ll see where the project’s location and its impact on the environment. By sorting out these important details early, Oklo can make the approval process smoother and faster.

The press release also revealed that under the 2024 ADVANCE Act, the NRC is making it easier for nuclear companies to get licenses. A big change is coming—a 55% cut in licensing fees, making the process more affordable. This new pricing will start from October 1, 2025.

Launching Its First Commercial Reactor in Idaho

On March 20, Oklo announced the launch of its first commercial powerhouse in Idaho. The company signed a MoA with the U.S. DOE and an Interface Agreement (IAG) with Idaho National Laboratory (INL). These agreements ensure Oklo follows all environmental rules while preparing the site.

It has been working closely with INL and DOE to get ready for site investigations. This includes cultural and biological surveys in partnership with the Shoshone Bannock Tribes.

DeWitte further confirmed that these agreements push them forward in building their first advanced fission powerhouse. He added that Oklo is committed to smooth and sustainable development.

Oklo’s Aurora Reactor Sets New Standards in Clean Energy

Oklo provides clean energy 24/7 to data centers, factories, industrial sites, communities, and defense facilities. It supplies heat and power through power purchase agreements.

The Aurora Powerhouse will deliver reliable, clean energy to customers and will use recycled fuel made at the Aurora Fuel Fabrication Facility. The facility will process recovered nuclear material from the EBR-II reactor into fuel for the nearby Aurora Powerhouse.

  • It can generate 15 MWe, scale up to 50 MWe, and operate for over a decade before needing refueling.

The fission pioneer also explained that they use advanced recycling techniques to keep transuranic materials together as fuel. This avoids the need to create pure material streams, which is a unique feature of fast reactors.

Notably, it’s the only company that has secured fuel for its first commercial advanced nuclear power plant.

Oklo has also developed the Radioisotope Production Facility, Atomic Alchemy with INL. This facility produces essential radioisotopes for critical and life-saving applications, strengthening the U.S. commercial supply chain.

The facility also extracts valuable radioisotope byproducts from the waste stream of Oklo’s fuel recycling process.

U.S. Nuclear Generation and Generating Capacity

As more power-hungry AI-driven data centers emerge, utilities are increasingly looking at nuclear power for grid reliability. Governments and private firms, including the big techs are investing in advanced nuclear reactors and small modular reactors (SMRs) to scale nuclear capacity efficiently.

The post Oklo Advances Its Nuclear Reactor Licensing Despite $73.6M Net Loss appeared first on Carbon Credits.

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U.S. Copper Rush: Imports Flood in and Prices Soar as Trump Tariff Looms

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COPPER

Copper prices surged on Monday as traders anticipated the outcome of potentially high U.S. import tariffs. The three-month copper price on the London Metal Exchange (LME) climbed to $9,925 per metric ton, building on last week’s gains after reaching a five-month high.

As per Bloomberg, Mercuria revealed that around 500,000 tons of copper are now headed to U.S. ports—much higher than the usual 70,000 tons per month. This spike is directly linked to expectations of new tariffs.

Bloomberg: Copper Prices Soar on Trump Tariff Speculation

Bloomberg said that copper futures on the London Metal Exchange jumped 1.9%, crossing $10,000 per ton. In New York, copper prices on Comex climbed 1.4% close to a record high before dropping back.

Since January, Comex prices have surged past international benchmarks as traders bet on U.S. import tariffs. On Monday, the price gap hit a new record of over $1,400 per ton, surpassing February’s peak after Trump announced a Commerce Department investigation into possible tariffs.

copper price
Source: Bloomberg

Explaining further, this investigation into copper imports is fueling market uncertainty. With new tariffs expected on April 2, traders are remaining cautious. This shift in supply could push prices to record highs while creating shortages in China and other markets.

Reuters highlighted Kostas Bintas, former co-head of metals at Trafigura Group, predictions on copper. He warned that global supplies could tighten sharply. Similarly, Goldman Sachs predicts that U.S. copper imports could rise by 50% to 100% in the coming months as buyers rush to secure material before tariffs hit.

Impact on the Economy

The rush of copper imports and looming tariffs could reshape industries worldwide. Here’s what industry pundits are expecting:

  • Record Prices: With 500,000 tons of copper flooding the U.S., prices could surpass $10,000 per ton. This would raise costs for construction, electronics, and electric vehicles.
  • U.S. Economic Shift: The government aims to boost domestic copper production, reducing reliance on foreign metals. This could help U.S. mining and manufacturing but also raise domestic costs.
  • Higher Inflation: Rising copper prices would increase production costs, leading to inflation across multiple sectors. Consumers already facing high living costs may feel the strain.
  • Global Supply Chain Issues: With more copper heading to the U.S., shortages could hit China, the world’s largest copper consumer. This could disrupt industries reliant on steady copper supplies.
  • Investment Changes: Companies might stock up on extra copper or look for other materials to avoid the impact of price changes. This uncertainty could lead to more investment in U.S. copper production and new alternatives.

What’s Behind the Copper Crunch?

Experts predict a 320,000-ton copper supply deficit in 2025 as demand outpaces supply. A sharp drop in U.S. copper scrap exports—crucial for a third of global production—is worsening the shortfall.

The U.S. is increasingly relying on imports to sustain the production of copper which is a highly critical metal for EVs, military tech, semiconductors, and consumer goods. Meanwhile, demand is soaring due to the rise of EVs, AI advancements, and renewable energy expansion.

Furthermore, China, setting a 5% GDP growth target, is rolling out stimulus measures to boost domestic consumption, further intensifying copper demand. Copper futures surged 12% as traders speculated that the U.S. might impose tariffs on base metal imports. In response, suppliers rushed shipments to America while tightening supply at other places.

RioTimes revealed an interesting point made by Nick Snowdon, head of metals research at Mercuria. He called this trend an “under-appreciated shock” to global markets.

Rio Tinto Bets on U.S. Copper

Amid all these developments, WSJ reported that Rio Tinto plans to expand its copper investments in the U.S. It operates the Kennecott copper mine in Utah and owns a majority stake in the Resolution Copper project in Arizona.

The company sees new opportunities after President Trump signed the executive order to speed up permitting and boost government funding for mineral projects.

Katie Jackson head of the company’s copper business confirmed this news by noting,

“We have a strong desire to invest more in the U.S., particularly in copper,” 

Copper Demand and Supply Forecast

Copper demand is set to rise sharply due to the clean energy transition.

IEA projects, cleantech applications, such as EVs and renewable energy, will drive demand from 5,380 kt in 2021 to 16,343 kt in 2040. Meanwhile, traditional uses like construction and electrical wiring will remain stable, reaching 20,036 kt by 2040.

Recycled copper supply will exceed double, from 4,123 kt in 2021 to 10,006 kt in 2040. Despite this growth, mining will still play a key role, with primary supply requirements peaking at 25,249 kt in 2030 before stabilizing.

The rising demand and supply chain concentration, primarily from China, might push for diversified sources and expanded recycling efforts.

copper demand and supply
Source: IEA

BHP, the largest mining company, predicts that copper demand from the energy transition sector will rise from 7% to 23% by 2050, according to a Kitco report.

  • Copper demand from the digital sector, including data centers, 5G, and AI, is also set to grow from 1% (current) to 6% by 2050.
  • Copper use in transportation will increase from 11% in 2021 to 20% by 2040. This rise is due to more electric vehicles on the road.
copper demand
Source: BHP

On the supply side, BHP highlighted a major challenge. The average copper ore grade has dropped by about 40% since 1991. In the next ten years, half of the world’s copper supply will face problems. Aging mines and lower ore quality will be major issues.

  • More significantly, the mining giant estimates that the industry will need $250 billion in new investments to close the growing gap between supply and demand.

BHP’s chief commercial officer Rag Udd.

“As we look towards 2050, we foresee global copper demand increasing by 70% to reach 50 million tonnes annually. This will be driven by copper’s role in both current and emerging technologies, as well as the world’s decarbonization goals.”

The U.S. is rushing to import copper ahead of possible tariffs, but the impact goes beyond supply relief. Higher prices, global supply chain disruptions, and shifting economic strategies could follow. Businesses and investors must stay ready for what’s next.

The post U.S. Copper Rush: Imports Flood in and Prices Soar as Trump Tariff Looms appeared first on Carbon Credits.

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