Michael Littenberg’s Post

A major milestone in the carbon markets!! With the United States government starting to articulate integrity guidelines for voluntary carbon markets, the industry will become much more trust worthy and robust. The Biden administration announced the release of the “Voluntary Carbon Markets Joint Policy Statement and Principles”, aiming to enhance and advance the market for carbon credits by establishing the US government’s guidelines to ensuring the high integrity of voluntary carbon markets (VCMs). https://lnkd.in/gKCdaMZt).

𝗡𝗲𝘄 𝗥𝘂𝗹𝗲𝘀 𝗮𝗻𝗱 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸𝘀 𝗶𝗻 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗮𝗿𝗯𝗼𝗻 𝗣𝗼𝗹𝗶𝗰𝗶𝗲𝘀 The US Securities and Exchange Commission (SEC) has finally published rules mandating climate-related disclosures for 6,000 public companies. Following significant industry and political pushback, the final rules 𝙙𝙤 𝙣𝙤𝙩 𝙞𝙣𝙘𝙡𝙪𝙙𝙚 𝙎𝙘𝙤𝙥𝙚 3 𝙚𝙢𝙞𝙨𝙨𝙞𝙤𝙣𝙨 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙢𝙚𝙣𝙩𝙨. The exclusion of Scope 3 will leave a blind spot in investors’ understanding of a company’s overall climate risk and will put it at odds with the EU’s mandatory European Sustainability Reporting Standards (ESRS). From 2029 onwards, large companies with significant operations in the EU will have to report Scope 3 emissions. 𝗞𝗘𝗬 𝗛𝗜𝗚𝗟𝗜𝗚𝗛𝗧𝗦 1-UK publishes consultation on carbon border adjustment mechanism   2-The US rejects federal carbon tax, again   3-The EU hopes its new carbon removal framework can help it to scale a domestic market  Read more here: https://lnkd.in/gHTY9akP #oilgas #oilandgas #Energy #innovation #markets #management #energy #Technology #ceo #boardofdirectors #finance #investors #investment #climatechange #environment #business #future

The U.S. government today announced the Principles for Responsible Participation in Voluntary Carbon Markets, a commitment to advancing the responsible development of VCMs, establishing robust standards for carbon credit supply and demand; improving market function; ensuring fair and equitable treatment of all participants and advancing environmental justice, including fair distribution of revenue; and instilling market confidence. The principles also recognize the role that high-quality VCMs play in amplifying climate action alongside other ambitious actions underway. At Cultivo, these principles are central to our work with landowners, investors, off takers and all our ecosystem partners in all our nature-based carbon removal projects. #naturalcapital #investinnature #voluntarycarbonmarket #carbonremoval

Absent a carbon tax, the voluntary carbon markets (VCMs) are our best tool to ensure that companies pay for their CO2 emissions, and that these funds flow to organizations innovating to hasten the green transition. Thanks to The White House for publishing its Principles for Responsible Participation in Voluntary Carbon Markets (VCMs). This is a major signal in support of the VCM, urging companies to use high-quality carbon credits to account for their hard-to-abate emissions. We're particularly grateful for Principle 3 : "Corporate buyers that use credits should prioritize measurable emissions reductions within their own value chains." This Principle gives companies a mandate to reduce their Scope 3 wherever possible, and then *inset*, paying forward their future decarbonization by investing in carbon credits that support the transition of hard-to-abate sectors that currently benefit their business, like #cement, #concrete, and #steel. Ping us to learn more: [email protected] https://lnkd.in/e2w2U4-y #CarbonCredits, #CarbonInsets, #GreenTransition, #BuildingMaterials, #UltraLowCarbonConcrete

#ClimateAction100+ is an investor initiative #dedicated to driving climate action among the world’s largest corporate greenhouse gas emitters. BEA Union Investment 東亞聯豐 is delighted to join forces with other investors who share the same mission of engaging companies to enhance their #governance framework, reduce greenhouse gas emissions, and strengthen climate-related financial disclosure. As an asset manager, we are committed to making a meaningful #impact and creating long-term #value while fulfilling client expectations. Please click to learn more: https://bit.ly/3ScWfsk #ClimateAction100 #Sustainability #ClimateChange #ImpactInvesting BEA Union Investment 東亞聯豐 Investment involves risks. The content above is available for information purposes only and it is not intended as promotional material in any respect. It does not constitute an offer, recommendation or solicitation to buy or sell any securities or general advertising of interests in any fund or investment vehicle. BEA Union Investment Management Limited makes no representations or warranties, express or implied, as to the accuracy or completeness of the content.

The omission of the Scope 3 emissions in reporting requirements will allow private equity firms to report lower carbon emissions to their investors while continuing to invest in polluting companies and assets. For example, in its most recent ESG report, The Carlyle Group reported emissions of 10,903 metric tons (MT) CO2e in 2021. An analysis by the Private Equity Climate Risk consortium released in April 2023 estimated Carlyle’s portfolio companies generated 62 million MT CO2e in 2021, meaning Carlyle reported just 0.018% of its emissions. Conversely, PECR found that Carlyle and its portfolio companies generated over 5,686 times the emissions that Carlyle actually self-reported. The December 2023 PECR analysis of Brookfield found that the firm and its subsidiary Oaktree Capital have invested in over 215 fossil fuel assets, emitting nearly 159 million MT CO2e. This amount is 14 times higher than the figures Brookfield disclosed (11.8 million MT CO2e) in its most recent sustainability report.

Thanks Latham & Watkins for sharing this short round up on the joint policy statement for the voluntary carbon market. May be of particular interest for both practitioners as well as students, tackling the need for robust integrity. #carboncredits #transitionfinance

The White House released the Voluntary Carbon Markets Joint Policy Statement and Principles, defining the Biden Administration’s support of hashtag #carboncredits as a way for companies to offset their Scope 3 emissions. The statement offers an overview of the current voluntary carbon credit markets (VCMs) and lists seven guidelines and “voluntary principles that U.S. market participants should embrace as they engage in these markets." Learn more via hashtag #ACTnews: https://ow.ly/c1sw50SzP1I+ hashtag #zeroemission hashtag #carboncreditmarket hashtag #cleanenergy

Biden Administration Unveils Principles for Robust Voluntary Carbon Markets Key Points: The Biden-Harris Administration has released new principles to guide the development of high-integrity voluntary carbon markets (VCMs). These principles aim to ensure VCMs drive real, verifiable emissions reductions and avoid greenwashing. Key principles include ensuring credit integrity, prioritizing emissions reductions, enhancing transparency, and supporting environmental justice. The Administration is taking a whole-of-government approach, with various agencies contributing to VCM development and oversight. Context and Background: Voluntary carbon markets have gained traction as companies seek to offset emissions and meet sustainability goals. However, concerns have been raised about the credibility of some carbon credits and the need for robust standards. The Biden Administration recognizes the potential of high-quality VCMs to channel private capital towards decarbonization efforts while acknowledging the need for guardrails to ensure their integrity. In my view, the Administration's principles represent a crucial step in restoring confidence in voluntary carbon markets. By establishing clear guidelines and a coordinated approach, these principles can help unlock private capital for credible decarbonization projects while addressing greenwashing concerns. However, their success will depend on effective implementation, monitoring, and continuous improvement based on stakeholder feedback. What are your thoughts on the Biden Administration's principles for voluntary carbon markets? How can we ensure these principles are effectively implemented and enforced? Share your insights below, and let's continue the discussion on building robust and impactful carbon markets. Like and share if you found this valuable! #VoluntaryCarbonMarkets #ClimateAction #NetZero #CarbonCredits #Sustainability #BidenAdministration https://lnkd.in/drXGPNsW

This week is going to get exciting for #vcm #voluntarycarbonmarkets and for potential project proponents (and developers) of significant number of carbon offset projects worldwide! On Tuesday, Janet Yellen will be announcing the US framework/guidelines for the development/use of high-integrity carbon credits including the use of such offsets to reduce Scope 1 and Scope 2 emissions. #esg #carboncredits #carbonoffsets #vcm #carbonprojects https://lnkd.in/gwsHRpQ2