Pachama published a review of the carbon markets in December 2024. Looking back at the previous 12 months, this report discusses the debate over using carbon credits for Scope 3 emission mitigation, the scientific evidence on the importance of conserving forests, the rush for removals and the emergence of tech for risk mitigation.
Sylvera published a paper on climate and corporate strategy in December 2024. In the UK, the new Labour government committed in their manifesto to mandating all FTSE 100 companies to develop and implement ‘credible’ net zero transition plans. Although the paper found that 9 in 10 companies in the UK and US have increased their investment in net zero initiatives in the last two years, 24 percent of those surveyed are very concerned about the brand and reputational damage associated with net zero missteps.
Patch, the carbon platform, published a guidance report for the demand side of the carbon markets in November 2024. The organisation spoke with hundreds of carbon credit buyers to find out what challenges they face – and how they are solving them. The report found that of the 100 biggest carbon credit buyers, only 15 percent have a dedicated carbon team. However, it takes the average buyer 53 hours to complete a comprehensive due diligence review.
In October 2024, the World Economic Forum collaborated with McKinsey & Company to produce a roadmap for the private sector to finance and act on nature. It argues that since the adoption of the Global Biodiversity Framework in 2022, opportunities for the private sector to engage with nature have grown rapidly. However, despite private financing rising to over $102 billion in 2023, a $700 billion annual gap remains to adequately fund nature.
Climate Impact Partners has released a guide to beyond value chain mitigation in October 2024. It explains the role of companies in climate mitigation, what beyond value chain mitigation is and how CIP has worked with Deloitte in this area. It makes the case for BVCM in terms of supporting wider decarbonisation efforts and reputation benefits. It explains: “By complementing internal strategies, BVCM expands corporate efforts beyond traditional Scope 1, 2, and 3 emissions, enabling action in existing climate solutions and helping to scale new ones, ultimately advancing societal decarbonization.
In October 2024, The Forest Carbon Partnership Facility (FCPF) reported a record year – it paid the most it ever has in a single year. It made a record $111.3 million in emission reductions payments which take the fund’s total payments (including those made in previous years) to $164.5 million. It reported that FCPF participant countries are now generating about 20 million excess emission reductions. It argues that these could be monetised in carbon markets but that only about 5 million emission reductions have so far been independently verified.
In October, The UNEP shares its 2024 emissions gap report, highlighting a ‘massive gap between rhetoric and reality’. With the next round of NDCs due for submission in early 2025, the report calls for a serious raising of ambitions. The report states that countries must cut 42 percent of GHG emissions by 2030 and 57 percent by 2035 if the world is to get on track for 1.5°C.
Howden and Pollination collaborated to publish a report on the role of insurance in unlocking finance for nature. Released in October 2024, it covers the current state of nature finance; the current state of insurance for nature finance and the nexus between the two. To enable investment in nature, the report argues that the insurance sector can play four core roles including risk transfer, protection of natural assets and enabling trading in environmental markets.
In this report, the World Economic Forum argues that investing in natural capital is essential, attractive and feasible. Released in September 2024, it assesses ways of unlocking capital for NCS as well as the innovations currently emerging in the market. It highlights that natural capital (that is the world’s stock of renewable and non-renewable natural resources that can deliver benefits to people) per capita dropped by 40% between 1992 and 2014, while produced capital doubled in the same period.
Terraspect has published a report that aims to reframe co-benefits into core benefits. Released in September 2024, it discusses the equitable distribution of carbon finance. The report outlines steps for transparent, equitable benefit sharing which include: Determining fair levels of compensation, appropriate payment mechanisms, effective verification and the impacts of institutional finance.