Investors and buyers have funneled record amounts of capital into forestry projects that reduce greenhouse gas emissions by conserving forests and capturing carbon in trees, according to a global survey of carbon market participants published on Thursday by Forest Trends’ Ecosystem Marketplace.
Bureaucratic machinations on the part of Indonesia’s Ministry of Forestry have knocked the wind out of a pioneering forest carbon project that had become one of the first to attract big-league financing, lured in part by the promise of a profitable carbon market. Many are now left wondering about the future of REDD and its risky business.
Carbon offset suppliers wanted an update on the progress of California cap-and-trade regulations. A delayed start to compliance is not what they had in mind – but might be just what the market ordered. After all, a landmark carbon market in a “climate cool” country is not likely to have a second chance at success.
The policy-driven carbon market contracted in 2010, but the voluntary market achieved its highest volume ever – thanks in part to renewed spending on corporate social responsibility and the release of new methodologies for forest carbon. Indeed, the number of participants based in the developing world more than doubled in response to demand for REDD credits.
When Climex announced it was shuttering its spot-trading platform in March, many thought it was the end of the line for this Amsterdam-based carbon trading platform. New boss Jeroen van de Kletersteeg, however, says the exchange will continue hosting auctions – and believes the business will be better than ever.
If carbon finance is to deliver environmental benefits in Africa, it needs a clear and transparent environment in which to operate. The Zambian government has been spearheading efforts to build a viable cash market, and now the Kenyans have launched a futures platform in Nairobi.
It's more than two decades since a handful of environmental non-profits and green industrialists first began experimenting with mechanisms that slow global warming by funding the preservation of rainforests. In the ensuing decades, we've learned a lot about about what works and what doesn't. Now Forest Trends and Bio-Logical have distilled these lessons into one 30-page guide for investors.
Cyberthieves who hacked the Czech carbon registry on Tuesday likely sold the credits as soon as they grabbed them – keeping the cash and letting the credits bounce around the system. If so, it was a sophisticated scheme that required intimate knowledge of different registries. Participants are now bracing for a fight over who will bear the loss.
A survey of more than 150 forest carbon buyers reveals an evolving market landscape and increased interest in forestry projects. Panelists from Ecosecurities, Conservation International, the Climate Action Reserve, and Ecosystem Marketplace roll up their sleeves and dig in to interpret the results.
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