Weekly News Highlights

This week, the carbon market is abuzz with transformative updates. MSCI predicts a critical shortfall of up to 40 million CORSIA-eligible carbon credits from 2024 to 2026, potentially driving prices to $50 per tonne and reshaping airline costs. Meanwhile, Australian Carbon Credit Units are poised for a 75% price hike by 2025, driven by increasing demand and limited supply under Australia’s Safeguard Mechanism.

On the policy front, the European Commission's Green Bonds Allocation Report highlights the impact of green investments, with 55 million tonnes of CO₂ avoided annually—a key pillar in Europe’s net zero ambitions. At COP29 in Baku, Norway announced a $740 million commitment to purchase carbon credits under Article 6 of the Paris Agreement, signaling robust support for the global carbon market.

Finally, a groundbreaking partnership between Verra and Brazil’s Amazonas state promises to elevate regional carbon markets, focusing on high-integrity credits and sustainable development in the Amazon.

Dive deeper into these developments to understand how they shape the future of sustainability and carbon trading.

The aviation industry is bracing for a major shift as a predicted shortfall in CORSIA-eligible carbon credits threatens to drive prices as high as $50 per tonne of CO2, according to a new report by MSCI. Analysts estimate a supply gap of up to 40 million units during the scheme’s first mandatory phase, from 2024 to 2026, which could have wide-ranging impacts on airlines and ticket prices.

The price of Australian Carbon Credit Units (ACCUs) is projected to surge by 75% to AUD 70 per tonne of CO2 equivalent by 2025, according to a report by Australian bank ANZ. The increase is attributed to rising demand from big emitters under Australia’s Safeguard Mechanism and reduced issuance of credits.

The European Commission’s 2024 NextGenerationEU (NGEU) Green Bonds Allocation and Impact Report sheds light on how green bond proceeds are transforming Europe’s environmental ambitions into action. With an estimated 55 million tonnes of CO₂ emissions avoided annually, the initiative is a cornerstone of the EU’s net zero strategy.

At COP29 in Baku, Norway unveiled its largest financial commitment yet to the global carbon market: a $740 million initiative to purchase carbon credits under the Paris Agreement’s Article 6. This bold move aims to drive demand in the emerging international carbon credit market.

In a landmark collaboration unveiled during COP29 in Baku, Azerbaijan, Verra and the state of Amazonas, Brazil, have signed a Memorandum of Understanding to revolutionise regional carbon markets. The agreement aims to create carbon credits, strengthen regulatory frameworks, and promote sustainable development.

If you're keen to dive deeper into the carbon market and explore topics related to environmental sustainability, this is your go-to source for insightful information.

Read the full articles on Green Earth News here.

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