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Rachel Rose Jackson & Adrien Tofighi-Niaki of Corporate Accountability are lead researchers on a new report on the effectiveness of carbon offset reforms.

As we pen this, the world’s governments are gathered in Bonn, Germany, for a round of tense climate negotiations that must deliver fruitful progress if COP30 later this year in Belém has any chance of helping us avoid complete climate breakdown. Simultaneously, industry actors, policymakers and thousands of participants are coming together in London for more than 700 events meant to catalyse local to global climate collaboration.

We all know what is at stake should the world fail.

For decades, carbon offsets (or “pollution allowances” purchased by polluting actors and counted towards their emissions reductions) and the voluntary carbon market (VCM, which links up offsets into a globally tradable market) have been consistently promoted by world policymakers and the private sector as our key to addressing climate change.

Yet they have never, not once, correlated with a sustained decrease in global greenhouse gas emissions. Today, dozens upon dozens of independent studies and investigations repeatedly remind us of the fundamental failures of offsets and the VCM.

Pará’s Amazon forest carbon deal in doubt as prosecutors move to block it

Yet, the VCM is predicted to reach values of up to US$27 billion by 2035, signalling the clear intent to go “all in” on a scheme that has repeatedly proven its own failure. Meanwhile, leading scientists and the UN Secretary-General have warned against dubious offsets and put the VCM on notice, insisting the industry plug its holes or sink the ship.

VCM 2.0

In response to years of public exposure of its failures, the VCM industry is trying to defend its legitimacy through a coordinated reformation strategy – the “VCM 2.0.” New industry-led initiatives, methodologies, and standards have been launched to rescue the VCM – in a rush to assure investors that the Titanic’s holes are being plugged and that the iceberg is not fatal.

Going “all in” on offsets and the VCM means betting our futures, massive resources, and the ability of the planet to sustain human life on a mechanism that has failed to prove its competence for decades.

To understand how risky this bet is, we looked at “VCM 2.0” performance in 2024 to see if there are any signs that these reforms are spurring fundamental shifts, or whether carbon offsets are still beyond fixing.

Carbon credit auditors suspended for failures in sham rice-farming offsets

Widespread use of ‘problem’ offsets

What we found was concerning, but not surprising. Despite ongoing reforms, problematic offsets – with failings that mean they may not deliver the carbon savings they represent – remain the norm.

More than 47.7 million problematic offsets were “retired” (VCM lingo for purchased and counted towards emissions reductions) by 43 of the world’s largest projects in 2024, accounting for nearly a quarter of the entire VCM. None of these offsets can be counted on to deliver the promised emissions reductions, yet they are used by actors around the world, often in lieu of truly reducing emissions. In addition, we found that:

  • Eighty percent of the offsets assessed were unlikely to deliver the promised emissions reductions.
  • Nearly all (or 93%) of the projects retiring problematic credits are located in the Global Soth, countries that have historically contributed the least to climate change. This includes five projects in Brazil, host of the U.N climate talks later this year.
  • The approval and promotion of problematic offsets spreads much further than one or two “bad apples.” Four registries and at least 17 verifiers were involved in approving these problematic offsets, signalling much broader responsibility for the failure of the VCM to deliver emissions cuts.
  • Forestry and land use projects and renewable energy projects are among the most utilised problematic projects, though other sectors were also involved.
  • All 37 projects we looked at in greater detail had a legitimate risk of having at least one fundamental failing that rendered the projects unlikely to deliver – totalling nearly 40 million credits. These projects either had a legitimate or high risk of non-additionality (23), non-permanence (14), leakage (17), or over-crediting (19).

Dangerous to ignore failings

This new research, which is just the tip of the iceberg, suggests that despite ongoing reforms, the VCM 2.0 continues to largely fail. Carbon offsets are hastening the likelihood of global climate action failure, not preventing it. Any advances through this reform appear to be limited in scope and potential, posing the question of why VCM supporters and investors continue to take on the liability in the face of proven (and repeated) failure.

Indigenous land disputes cloud Kenya’s carbon market ambitions

These findings, combined with the work of many other experts, necessitates clarity on who is responsible for the repeated failures of the ‘checks and balances’ of the VCM for the last decades. It’s time we reckon with what this research and the overwhelming evidence so clearly lays bare – that the VCM is still driving us head first toward the iceberg, and that offsets rip open rather than plug leaking holes, despite claims of reforms.

It is evident that 2024 repeated the failures of the past. We cannot entrust the VCM industry to captain the ship of climate action any longer. If we do, we know that humanity’s collision with the fatal iceberg is all but guaranteed.

*Neither Corporate Accountability nor the authors have any conflict to disclose. Corporate Accountability does not take any funding from corporations or governments. It is funded primarily by individuals and carefully vetted foundations.*

The post World’s largest carbon projects unlikely to deliver emissions cuts despite reforms appeared first on Climate Home News.

World’s largest carbon projects unlikely to deliver emissions cuts despite reforms

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UK imports of “green” jet fuel linked to Amazon deforestation

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A US biofuels producer that exports “green” aviation fuel to Britain and the European Union has purchased beef tallow from a Brazilian supply chain tied to illegal deforestation in the Amazon, shipping data and a court document show.

Diamond Green Diesel (DGD), a major provider of sustainable aviation fuel (SAF) and renewable diesel, has sourced hundreds of thousands of tonnes of beef tallow from Brazil, alongside waste fats from other sources, over the last three years, as global demand for biofuel feedstocks soars.

Reporting by Unearthed and nonprofit investigative outlet Repórter Brasil reveals DGD’s connection to a rendering plant that has sourced supplies from a meatpacker fined for buying cattle from an illegally deforested Amazon reserve. A previous investigation by Reuters and Repórter Brasil found DGD had bought animal fat from two other rendering factories linked to supplies of cattle from illegal ranches.

The newly identified factory, Pacífico Indústria e Comércio de Óleos e Proteínas Ltda, which is based in Cacoal, a small city in the far-western Amazon state of Rondônia, has been supplied by Rondônia meatpacker DistriBoi, a 2022 court document shows.

DistriBoi was fined two years ago for illegally purchasing cattle from the state’s Jaci-Paraná conservation reserve, which has been ravaged by illegal ranching.

There is no suggestion that the companies involved were aware of deforestation at farm level. But the findings suggest a traceability gap in the supply chain of feedstocks for sustainable fuels, where cattle by-products are subject to less oversight than the primary commodities of the cattle industry, such as meat and leather.

A drone view of the entrance to Diamond Green Diesel, LLC, a joint venture between Valero Energy Corporation and Darling Ingredients Inc., in Port Arthur, Texas, U.S., July 30, 2025. REUTERS/Adrees Latif

A drone view of the entrance to Diamond Green Diesel, LLC, a joint venture between Valero Energy Corporation and Darling Ingredients Inc., in Port Arthur, Texas, U.S., July 30, 2025. REUTERS/Adrees Latif

Pristine rainforest blanketed the Jaci-Paraná reserve when it was created 30 years ago to protect traditional forest activities such as rubber tapping and nut harvesting.

Today, illegal ranching has devoured nearly 80% of its forest cover and it has become a notorious example of the devastation wrought by land grabbers in the world’s largest rainforest.

“The damage to biodiversity has been devastating,” said local Indigenous activist Neidinha Suruí, who featured in the 2025 Emmy Award-winning documentary “O Território”.

“It is sad to see what has been lost,” she said.

Greener air travel?

The “renewable diesel” and sustainable aviation fuel (SAF) that are being exported by DGD – a joint venture between US oil refiner Valero Energy Corp and Texas-based Darling Ingredients – are classed as “green” because they are made from feedstocks classified as waste, including tallow, which consists of fat separated from cattle carcasses.

Many governments and airlines are pinning their hopes for greener flying on SAF made with organic waste materials, including Britain which introduced a compulsory blending requirement last year.

Top green jet fuel producer linked to suspect waste-oil supply chain

Air travel accounts for about 2.5% of global carbon emissions and in contrast to other transport sectors that can be electrified, shrinking aviation’s carbon footprint is much more difficult.

Waste products such as beef tallow and used cooking oil (UCO) are considered the greenest of viable SAF feedstocks on the grounds that they do not create competition with foodstuffs such as soy oil or palm oil, nor increase deforestation pressure.

An Air France aircraft, operated with sustainable aviation fuel (SAF) produced by TotalEnergies, is refueled before its first flight from Nice to Paris at Nice airport, France, October 1, 2021. REUTERS/Eric Gaillard

An Air France aircraft, operated with sustainable aviation fuel (SAF) produced by TotalEnergies, is refueled before its first flight from Nice to Paris at Nice airport, France, October 1, 2021. REUTERS/Eric Gaillard

But there is concern that the global rush to ramp up SAF use could indirectly exacerbate deforestation pressure by increasing demand for feedstocks such as tallow and UCO.

That could increase the profit margins of cattle ranches – including illegal ones – and have other unintended consequences, such as encouraging fraud in supply chains, as Climate Home News has reported.

An investigation published in March by Climate Home News and Swedish broadcaster SVT found that Finnish biofuels giant Neste is sourcing key ingredients for its SAF from an opaque supply chain that enables fresh palm oil to be passed off as used, waste oil.

Because tallow is classified as waste by regulators in markets including the UK and EU, the green fuel industry’s most widely used certification scheme – International Sustainability and Carbon Certification (ISCC) – does not assess whether forests were cleared to rear the cattle that produced it in the first place.

    This allows tallow from cattle to qualify as a sustainable feedstock for green fuels, even if they were raised on illegally deforested land.

    “There is clearly an oversight within the rules if the products, in this case animal tallow, are originally coming from deforested land,” said Cian Delaney, a campaign coordinator at the clean transport and energy advocacy group Transport & Environment.

    That means government SAF mandates aimed at stemming air travel emissions could help boost the earnings of cattle ranchers linked to illegal deforestation in Brazil, where ranching and other forms of agriculture have been the main driver of forest loss.

    Land grabbers clear way for ranchers

    Once covered by an unbroken rainforest canopy, Rondônia’s Jaci-Paraná reserve has been decimated by illegal deforestation driven by cattle ranching – a major cause of tree loss in the Amazon.

    Land-grabbers have seized – often violently – and cleared more than three-quarters of its forest for pasture, as ranching has steadily advanced into the southern Amazon.

    Suruí, the local Indigenous activist, said companies that buy products derived from illegal activities perpetuate environmental crimes in the rainforest.

    “If there were no meat processors buying illegally sourced cattle, there would be no land grabbing and no deforestation,” Suruí told Repórter Brasil, which partnered on the new investigation with Unearthed, and a team of journalists supported by JournalismFund Europe. 

    Lawsuits and linked supply chains

    Brazilian President Luiz Inácio Lula da Silva has pledged to end all deforestation in the country by 2030, in part by strengthening environmental enforcement in the world’s biggest rainforest.

    In Rondônia, authorities have launched more than 50 lawsuits related to land-grabbing and deforestation in the Jaci-Paraná reserve alone. Local slaughterhouse DistriBoi is named in 31 of the lawsuits, including the 2024 case in which it was fined.

    According to the 2022 court document, which concerned an unrelated labour dispute, lawyers for Pacífico refer to DistriBoi as the rendering plant’s “largest supplier of raw materials”.

    US-based DGD received almost 15,000 tonnes of tallow from Pacífico from 2023 to 2025 at its Texas refinery, as well as used cooking oil from various countries and sources, according to trade database Panjiva.

    A herd of cattle is seen at the Marupiara ranch in the city of Tailandia in the state of Para, Brazil March 17, 2020. Picture taken March 17, 2020. To match Special Report BRAZIL-DEFORESTATION/CATTLE REUTERS/Pilar Olivares

    A herd of cattle is seen at the Marupiara ranch in the city of Tailandia in the state of Para, Brazil March 17, 2020. Picture taken March 17, 2020. To match Special Report BRAZIL-DEFORESTATION/CATTLE REUTERS/Pilar Olivares

    Darling Ingredients is also a parent company of Pacífico since its 2022 acquisition of Brazilian rendering company FASA Group.

    A spokesperson for Darling Ingredients denied that Pacífico had sourced beef residues from DistriBoi’s Ji-Paraná slaughterhouse – one of two that the meatpacker operates in Rondônia.

    “The rendering plant Pacífico does not source any materials from the slaughterhouse Distriboi in Ji-Paraná,” the spokesperson said in an emailed response, without providing evidence or commenting directly on the content of the 2022 court document.

    Darling did not respond to a follow-up question about Distriboi’s other slaughterhouse in the region, which, according to cattle transfer documents, has also bought from a farm that has illegally cleared forest within the extractive reserve.

    “Our relationships are typically with the slaughterhouse, several levels removed from cattle ranchers. Regardless, we are committed to ensuring our raw materials are deforestation free. We expect our raw material suppliers to abide by our supplier code of conduct. In addition, we are in the process of requiring all [the] raw materials to attest that their material is deforestation free,” the spokesperson said in a statement.

    DistriBoi said in an apparent reference to the pending Jaci-Paraná lawsuits that “the matters mentioned … are already under review, including by higher courts”. It has previously denied wrongdoing. The company’s statement did not address a question about its commercial ties to Pacífico.

    Valero Energy, the major refiner that co-owns DGD with Darling Ingredients, did not respond to requests for comment, nor did DGD itself.

    From slaughterhouse to SAF

    In an effort to rein in carbon emissions from air travel, regulators in Britain and the EU have mandated progressively increasing SAF blending quotas in the years ahead, creating a new market for feedstocks including beef tallow.

    Brazil’s exports of tallow to the US have risen sharply in recent years, up from less than 10,000 tonnes in 2021 to almost 400,000 tonnes last year, according to Panjiva, reflecting growing demand for biofuels like SAF.

    In the UK, Europe’s biggest aviation market by seat capacity, jet fuel was required to contain 2% SAF by the end of 2025, rising to 10% by 2030 and 22% by 2040.

    DGD shipped 134,000 tonnes of SAF worth nearly $90 million from Texas to the UK in 2025, according to trade data from Panjiva. The company also exported smaller amounts of renewable diesel to Britain.

    The EU received biofuels, including small quantities of SAF, worth over $1.1 billion from DGD’s Texas refinery last year, figures show.

    Is the world’s big idea for greener air travel a flight of fancy?

    Unearthed’s investigation could not identify which airlines or airports buy DGD’s SAF once it arrives in Britain.

    Valero, DGD’s other parent company, is positioning itself as a key player in the transition to lower-carbon fuels in the UK, where it markets its renewable diesel under the Texaco brand.

    It has been an active participant in SAF policy discussions and has criticised the government’s planned cap on waste fat sources in SAF, calling them “the world’s most cost-effective production route for SAF” in a submission to parliament.

    Helping to cut emissions?

    Even tighter oversight over SAF feedstocks is crucial to ensure that blending mandates such as Britain’s are effectively lowering emissions, said Anna Krajinska, a director at Transport & Environment UK.

    Forests store vast amounts of carbon; when they are cut down or burned this carbon is released into the atmosphere.

    “If there’s tallow coming from land that’s been deforested, then those emissions might be so high that you might not be getting to the greenhouse gas reduction threshold,” Krajinska said.

    A staff member is pictured as he fills up the Emirates Airlines Boeing 777-300ER with Sustainable Aviation Fuel (SAF), during a milestone demonstration flight while running one of its engines on 100% (SAF) at Dubai airport, in Dubai, United Arab Emirates, January 30, 2023. REUTERS/Rula Rouhana

    A staff member is pictured as he fills up the Emirates Airlines Boeing 777-300ER with Sustainable Aviation Fuel (SAF), during a milestone demonstration flight while running one of its engines on 100% (SAF) at Dubai airport, in Dubai, United Arab Emirates, January 30, 2023. REUTERS/Rula Rouhana

    But as the world’s appetite for flying keeps on growing, some experts say SAF is the only viable means to reduce aviation emissions at present.

    Referring to the deforestation links identified in Unearthed’s investigation, Wouter Dewulf, an aviation economist at Belgium’s University of Antwerp, said it “would be important to assess how large this infraction is”.

    “I’m quite sure you have aberrations,” Dewulf added. “But biofuels are the best alternative for the moment.”

    T&E’s Delaney said there needs to be less opacity and better oversight from regulatory authorities. “Right now, there are just too many blindspots,” he added.

    The post UK imports of “green” jet fuel linked to Amazon deforestation appeared first on Climate Home News.

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    Is the Keystone XL Pipeline Back?

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    A company has proposed to build a crude oil pipeline crossing the Canadian border near where the long-contested project would have entered the United States.

    No project better embodies the nation’s wild swings in climate and energy policy than the Keystone XL pipeline.

    Is the Keystone XL Pipeline Back?

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    Meeting Climate Targets Requires Humanity to Reorient Its Relationship With Nature, New Study Says

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    A team including scientists, Indigenous people and conservationists point to the ecosystem connecting Yellowstone and the Yukon as an example of a region where humans and nature are flourishing together.

    Governments cannot reach their climate goals without rethinking humanity’s relationship to the Earth.

    Meeting Climate Targets Requires Humanity to Reorient Its Relationship With Nature, New Study Says

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