Carbon Markets - Curated Highlights [Mid May to Mid June '25]

CCS/DAC/BECCS developments

• Aircapture secures $50M Series A funding to scale DAC systems. California-based Aircapture recently completed a $50 million Series A funding round, led by the Larsen Lam Climate Change Foundation, to scale its modular DAC systems for use in the food and beverage, manufacturing, and agricultural sectors. The investment aims to expand technology deployment, accelerate project financing, and reduce the cost of direct air capture, addressing a critical need in the $70 billion industrial CO2 market.

• CCS sector sees significant investment but faces cost challenges. Carbon Capture and Storage (CCS) has reached a turning point with investments quadrupling over the past five years to $64 billion in 2024, though its deployment trajectory still falls short of 2050 net-zero goals, and Direct Air Capture (DAC) costs remain high at $350-$1,000/tCO2. The sector is projected to scale six times by 2050, with carbon dioxide removal (CDR) technologies anticipated to capture 330 million tonnes of CO2 in 2050.

• Holcim begins construction of carbon capture cement plant in Greece. European cement maker Holcim has commenced construction of a carbon capture cement plant in Greece, with a €120 million investment. This facility, part of the Maimi Olympus project, aims to produce 8 million tonnes of near-zero cement annually by 2030, integrating CO2 capture into industrial processes.

• Absolute Climate concludes public comment for DAC plus geological storage methodology. Absolute Climate has finished the public comment period for its draft DAC plus geological storage methodology, which comprises modules for DAC, pipeline transport, sequestration in saline aquifers, and electricity. This methodology, approved by Frontier, seeks to establish a consistent, science-based framework for assessing the quality and impact of DAC projects.

• UK invests nearly £10 billion into CCUS. The UK government is committing nearly £10 billion into carbon capture, utilisation, and storage (CCUS) by 2029, as part of a larger £21.7 billion spending review for green energy sectors. This investment underscores the UK's strategy to scale CCUS technology across industrial clusters and support its 2050 net-zero targets.

• Ontario proposes CO2 storage legislation. Ontario, Canada, has proposed the Carbon Capture, Utilization, and Storage Act, new legislation designed to regulate the safe injection and permanent storage of CO2 on both public and private land. This bill aims to provide a clear legal framework for CCUS projects, which is critical for industrial decarbonization and private sector investment.

Notable Trades

• Gevo purchases $637.5K in CDR credits linked to North Dakota acquisition. Sustainable aviation fuel developer Gevo has acquired $637,500 in CO2 removal credits from South 8 Energy's operations in North Dakota, with the credits certified under the Puro Standard. This transaction underscores the growing demand for verified carbon removal solutions within the clean energy sector.

• Japanese shipping firm MOL retires technology-based CDR credits. Japanese shipping company MOL has retired 1,000 technology-based CDR credits sourced from Exorbiad Green, a developer of enhanced rock weathering projects in Bolivia. These credits, certified under the Puro Standard, indicate an increasing trend among corporations to use technological CDR to address their carbon footprint.

• Bids for Corsia Phase 1 and CCP-labeled credits face sourcing issues. Bids for Verified Carbon Standard (VCS) and Gold Standard-certified credits eligible for Corsia Phase 1 (2024-2026) were reported at $12.10/tCO2e for 1 million tonnes, and CCP-labeled credits from a Turkish landfill gas project were bid at $3.20/tCO2e for 80,000 tonnes, though securing Letters of Authorisation (LoAs) for both categories remains problematic. Tenders were also circulating for afforestation (75,000-125,000 t) and renewable energy (350,000-450,000 t) credits, with price being the main factor for winning offers.

Infrastructure (Marketplaces, Registries, Ratings, Insurance, and MRV)

• BeZero Carbon launches Pre-rating Scorecard for un-rated projects. UK-based carbon ratings agency BeZero Carbon has launched its "first dynamic tool" for un-rated project assessment, the Pre-rating Scorecard, which deploys its established ratings methodologies to help users understand project risk on a case-by-case basis. The tool provides an immediate score that updates in real time as users adjust key project parameters, supporting informed decision-making throughout the carbon credit value chain.

• Calyx opens free access to its carbon ratings platform. US-based carbon ratings agency Calyx has opened free access to its platform beyond paid clients, offering services such as tiered integrity ratings, project-level assessments of 'beyond-carbon' benefits, and due diligence tools, aiming to drive better quality in the market. Calyx's platform allows buyers to easily identify high-quality carbon credits based on GHG integrity, Sustainable Development Goal (SDG) impact, or regional alignment.

• ClimeFi partners with Xprize to offer CDR credit portfolio. France-based CO2 removals (CDR) platform ClimeFi is partnering with Elon Musk's Xprize to provide a portfolio of CDR credits from winners and finalists of The Xprize Carbon Removal Competition to Tackle Climate Change. The "ClimeFi Xprize Portfolio" offers buyers access to a single, diversified portfolio with a reduced minimum purchase amount, guaranteeing delivery of over 50,000 tCO2e by 2030.

• Isometric unveils Emission Factor Library for CDR projects. UK-based CO2 removal (CDR) standard Isometric has launched an Emission Factor Library, enabling CDR project developers to quantify their projects' net CO2 emissions by selecting from approved emission factors. The library, available through Isometric Certify, aims to standardize carbon accounting across projects and speed up the verification process.

• West African Development Bank to launch carbon marketplace. The West African Development Bank (BOAD) plans to launch the BOAD Carbon Market Place (BOAD-CMP) by November, a sub-regional carbon marketplace designed to drive regional funding for climate projects. This initiative aims to generate €1.2 billion in annual financial flows by 2029-2031, providing a platform for high-integrity carbon credits to support sustainable development.

• GCC to launch global carbon market and registry infrastructure. The Gulf Cooperation Council (GCC) intends to launch a global carbon market and national registry infrastructure by the end of 2026, with the aim of implementing Article 6.2 and fostering transparent, high-integrity carbon credit transactions. This initiative seeks to standardize carbon data and overcome challenges related to technical expertise, legal frameworks, and pricing mechanisms in the region.

• Peru's national carbon registry expands to include VCM and Article 6 projects. Peru's national carbon registry, RENAMA, is being expanded to include both Voluntary Carbon Market (VCM) projects and Article 6 projects, with the first Article 6 project registration for a forest conservation effort underway. This expansion aims to enhance transparency and efficiency in Peru's carbon market, with an updated model and consultation process expected in the coming months.

• Verra partners with Hedera Guardian to speed up VCM project development. Verra has announced a long-term partnership with Hedera Guardian, an open-source platform, to accelerate the development and issuance of voluntary carbon market projects. This collaboration aims to streamline the registration, data access, and verification processes, addressing bureaucratic bottlenecks and fostering efficiency in the VCM.

• Global carbon data project unveils new model version. The Carbon Action Data (CAD) Trust has unveiled an updated version of its model, designed to enhance standardization and transparency for carbon market data through an Article 6-aligned data exchange format. This new model aims to support various carbon market use cases, including policy eligibility, MRV, and global accounting systems, and is currently undergoing a public consultation.

Country Developments

• Compliance demand gains ground in global CO2 credit markets. Global carbon credit retirements totaled 247 million tCO2e in 2024, with compliance markets nearly tripling their demand to around 60 million tCO2e, accounting for a significant portion of retirements compared to 76% from voluntary corporate goals. This spike was largely driven by five major Emissions Trading Systems (ETSs) in California, Colombia, Quebec, South Africa, and Australia.

• South Africa allows PACM credits for carbon tax offset. South Africa's National Treasury has confirmed that companies can offset up to 10% of their carbon tax liability using Paris Agreement Crediting Mechanism (PACM) credits, extending this allowance until 2030. This policy aims to provide flexibility for regulated entities and encourages investment in carbon offset projects.

• Iowa governor vetoes CO2 pipeline restriction bill. Iowa Governor Kim Reynolds vetoed a legislative effort that sought to restrict the ability of private landowners to negotiate directly for CO2 pipeline easements, arguing the bill would harm economic development and energy reliability. The veto allows projects like Midwest Carbon Express and Summit Carbon Solutions to proceed with CO2 pipeline development.

• Vietnam ETS pilot to launch in August with generous offset rules. Vietnam's ETS pilot program is set to launch in August 2025, covering power, steel, cement, and chemicals sectors, and allowing companies to offset 10% of their emissions initially, rising to 15% in 2027-2028. The ETS aims to scale to 1,800 companies by 2030, incentivizing GHG emission reductions across various industrial sectors.

• Laos adopts decree to accelerate carbon market development. Laos has enacted a decree to speed up its carbon market development and Article 6 pipeline, aiming to enhance transparency and efficiency to attract private and international investment in Article 6 projects. The decree is expected to strengthen Laos's position as a hub for tradable carbon credits, particularly from hydropower projects.

• California lawmakers defer ETS extension language in budget proposal. California lawmakers have postponed a decision on extending the state's cap-and-trade ETS language in a proposed budget, pushing the debate on its future until later in the week. This deferral leaves uncertainty regarding the long-term framework for California's primary climate change program, which affects businesses operating under the ETS.

• Zimbabwe authorises up to 2.86 million Article 6 credits. Zimbabwe has authorized up to 2.86 million Article 6 credits, with 5,000 receiving Letters of Authorisation (LoA), including the Project Hwange Sodalite which secured Gold Standard certification for its initial 280,000 credits. This marks a significant step in Zimbabwe's participation in international carbon markets under the Paris Agreement.

• Nigerian state of Lagos to launch Africa’s first subnational carbon exchange. Lagos State, Nigeria, is preparing to launch Africa's first subnational carbon exchange, aiming to generate 1.2 million carbon credits and over $1 billion in revenue by 2030. This initiative seeks to drive clean energy, green job creation, and sustainable development within the state.

• US EPA readies approval of CO2 storage well primacy authority for Texas. The US EPA is planning to approve Texas's request for primary authority to administer Class VI Underground Injection Control (UIC) wells, which regulate CO2 injection for storage, making Texas the third state after Wyoming and North Dakota to gain such authority. This approval will streamline the permitting process for large-scale CO2 storage projects in Texas, a key industrial state.

• Singapore and Philippines near Article 6 pact. Singapore and the Philippines are close to signing an Article 6 pact, building on an existing MOU, to facilitate carbon credit partnerships and promote green investments. This potential agreement would further develop bilateral cooperation in carbon markets within Southeast Asia.

• UAE climate law enters into force, requiring GHG reporting. The UAE's new climate law has come into force, mandating covered entities to measure, verify, and report GHG emissions, and allowing the use of carbon credits for compliance. Entities have one year to comply with the new requirements, reinforcing the UAE's commitment to reducing emissions and fostering a regulated carbon market.

• China eyes absolute CO2 emissions cap for national ETS. China's Environment Ministry is considering implementing an absolute CO2 emissions cap for its national ETS, moving away from the current intensity-based system. This potential shift could significantly tighten emission controls in the world's largest carbon market, expanding coverage to sectors like aluminium, steel, and cement.

• Ghana to create 'two-tier' Corsia-aligned LoA system. Ghana is planning to implement a 'two-tier' Letter of Authorisation (LoA) framework by the end of 2025 that aligns with both UN's Article 6 and aviation decarbonisation markets, providing greater certainty and flexibility to developers and investors. This system will include legal clauses such as indemnity and enforceability, making Corsia-aligned credits more fungible and insurable for buyers.

• India opens formal registration for domestic offset scheme. India's Bureau of Energy Efficiency (BEE) has formally opened registration for non-obligated entities to participate in the country's domestic carbon offset mechanism under the Carbon Credit Trading Scheme (CCTS). This voluntary, project-based system encourages GHG emission reductions in sectors not covered by the upcoming mandatory compliance mechanism.

Deals/Acquisitions/Investments

• UK tech firm Wise invests £500K in nature-based, CDR projects. UK financial technology firm Wise will invest £500,000 ($676,000) in nature-based and hybrid CO2 removal (CDR) projects in Latin America and Asia, partnering with start-up Opna. This investment is part of Wise's updated ESG strategy to move from buying offsets to investing directly in carbon reductions through removals, including improved forest management and biochar.

Top Buyers / Intermediaries (>50k retirements)

• TASC SA Pty Ltd

• GSMA

• Greener Life

• Netflix