ICVCM Rejects Major Renewable Energy – Carbon Credit Mythology

On August 6, 2024, the Integrity Council for the Voluntary Carbon Market (ICVCM) shook up the carbon credit world with a major decision. They rejected eight key methodologies used for renewable energy carbon credits, which means that a whopping 240 million credits– or about a third of all credits in circulation-won’t get the Core Carbon Principles (CCP) label anymore.

Most of these rejected credits- 93% to be exact—came from one methodology: the Clean Development Mechanism (CDM) ACM0002 for grid-connected renewable energy projects. This methodology was a staple for many projects, so its disqualification is a big deal.

Now, the number of credits that meet the current global standards has dropped sharply. Only 28 million credits have the CPP seal of approval, compared to the thousands of credits that were available before.

With 180 million credits still under review, the carbon market is facing potential shortages of CCP-eligible credits.

This could be a big problem if demand for these credits spikes, especially for those involved with the Voluntary Carbon Markets Integrity Initiative (VCMI).

For anyone involved in renewable energy or carbon markets, this news highlights how the rules are changing and the standards are getting tougher.

If you’re trying to stay on top of the latest developments and make sure your projects align with these new standards, we’re here to help.

And Want to learn more about how this decision could impact you?

Climeto Sustainable Services is here to guide you through these changes and help your projects stay compliant. Reach out to us at www.climeto.com for more insights.

Source