27th Week Carbon Credit Markets 2025. G20 and carbon credits, Vietnam, biochar, EU introduces nature credits, BRICS lead solar, physical risks in banks and insurance companies, the Carbon treasure map
- Art Dam
- Jul 13
- 6 min read
Monday, 14 July 2025.
- Carbon Credits. More actions to strengthen the integrity of carbon credits, with emphasis on the global data standardization by the G20 🌍 , the launch of a pilot emissions market in Vietnam 🇻🇳 and the update of Verra's high climate potential biochar methodology 🚜.
- Other Highlights of the Week 27. 🌱 Several climate initiatives in July 2025, including nature credits in the EU 🇪🇺, emerging solar leadership of the BRICS 🌎, integration of physical risks into banking models by the BIS 🏦 and a global UN roadmap 🇺🇳 for insurers to tackle the net-zero transition.
- Opportunities. Accelerating the climate transition: 🌳🎦 WattTime video shows where to install clean energy with the greatest impact; 🇪🇺European Union and 📢 UNFCCC looking for experts to develop standards for nature and carbon credits; and 🇧🇷CCS Brazil opens consultation on carbon capture and storage technologies.
- Events. 📍🖥️ UNFCCC update on Article 6.4 (07/22), 🇧🇷 3rd Brazilian Climate and Carbon Conference in São Paulo (07/22–23), 🇧🇷 1st GHG Inventory Conference in Curitiba (07/24) and the Fastmarkets Latin America Carbon Forum (08/11) in São Paulo, with discount voucher for Carbon Credit Markets readers.
Here the details.
CARBON CREDITS
📄 Carbon Credits: G20 Body Launches Public Consultation on Global Data Model.
The "Summary Draft for Consultation" document, released on July 4, 2025, presents the proposal for the Common Carbon Credit Data Model, developed by the Climate Data Steering Committee (CDSC) under the leadership of the G20 Sustainable Finance Working Group (SFWG). The goal is to standardize data related to carbon credits to increase the transparency, integrity, and interoperability of carbon markets.
The main elements of the proposed model are as follows:
* Standardized identifiers for projects, credits, and transactions.
* Data fields to track the credit lifecycle: issuance, transfer, and retirement.
* Integration with existing systems such as CAD Trust and national platforms.
* Support for independent verification and traceability of credits.
* Encouraging voluntary adoption by governments, registrars, and market platforms.
The public consultation is open until August 12, 2025, and seeks input from public and private stakeholders to improve the model before its international adoption.
You can access the details directly here or on the official G20 SFWG website.
🇻🇳Vietnam issues rules for pilot ETS, scheduled for launch in August 2025.
The Vietnamese government published the rules for the pilot emissions trading system (ETS) through a revised version of Decree No. 06/2022/ND-CP, issued on June 9, 2025. Scheduled to launch in August 2025, the initiative is part of the national strategy to achieve net-zero emissions by 2050 and will cover approximately 50% of the country's CO₂ emissions during the pilot phase.
The ETS will initially cover the thermal power, cement, and steel production sectors, with free allowance allocations based on the carbon intensity per unit of production. Companies will be able to offset up to 30% of their emissions using credits from domestic or international low-carbon projects. The regulation also allows the use of credits from the Clean Development Mechanism (CDM), the Paris Agreement, and bilateral mechanisms such as the JCM with Japan.
The system is expected to evolve to include permit auctions and sectoral expansion by 2029. Read more in an article from the International Carbon Action Partnership.
🌏🚜Verra Strengthens Biochar Methodology, Focusing on Climate Impacts of Up to 1 Gt CO₂/Year
Verra has published a one-off update to its methodology (VM0044) for biochar projects under the Verified Carbon Standard (VCS) program. Version 1.2 introduces important technical adjustments, such as the requirement for investment analysis to demonstrate additionality, updated methodological references, and alignment with the ICVCM's Core Carbon Principles (CCP).
These changes strengthen the integrity of carbon credits generated by projects using biochar to capture and store carbon durably.
According to Verra, "the mitigation potential of biochar is significant, with estimates suggesting it could avoid up to 1 gigaton of CO₂ equivalent per year by 2050." The organization also announced that a broader review of the methodology (version 2.0) is under development, with a public consultation scheduled for late 2025. Read more.
The topics of biochar and CCP were recently well explored at the Argus Latin America Carbon Conference 2025. Read more here.
HIGHLIGHTS OF THE WEEK
🇪🇺 About Nature Credits, scheduled to be launched by the European Union in 2027.
The Roadmap towards Nature Credits document, submitted on July 7th to the European Parliament and other bodies, proposes the creation of a voluntary and reliable market for nature credits—certified units that represent positive actions such as reforestation, ecosystem restoration, and biodiversity protection. The initiative aims to attract private investment to complement public funding, generate income for local communities and farmers, and put nature "on the books" of companies. The plan includes rigorous certification standards and pilot projects in countries such as France, Estonia, and Peru. Scheduled to launch in 2027, the system is now open for public consultation until September 30, 2025, to receive contributions from companies, governments, and civil society.
Click here for the press release and access to the public consultation. And here's the Q&A about Nature Credits.
📈 BRICS Solar: Emerging economies now lead the global race for clean energy. According to the Ember report, BRICS countries now account for 51% of global solar power generation—a staggering jump from 15% a decade ago. China leads with 834 TWh in 2024, followed by India (133 TWh) and Brazil (75 TWh), which surpassed Germany to enter the global top 5. Solar energy accounted for 37% of the increase in electricity generation in BRICS countries in 2024, and clean energy sources as a whole (solar, wind, hydro, and nuclear) accounted for 70% of this growth. On the other hand, countries like Russia, Indonesia, and Egypt still rely heavily on fossil fuels. Read the study published on July 3rd here.
🏦 BIS proposes model to incorporate physical climate risks into banks' credit assessments.
The Bank for International Settlements (BIS), the central bank for central banks, proposed on July 7th a new model to incorporate physical climate risks into the credit assessment models used by banks. These include extreme events, floods, and wildfires. The idea is to adapt existing models, treating climate disasters as events that can significantly affect the value of borrowers' assets. This model allows for calculating the impact without needing to overhaul the bank's entire credit portfolio, while maintaining operational efficiency. This will allow banks to better measure potential losses caused by extreme weather events, adjust their provisions and capital allocation, and even create financial instruments to hedge against these risks.
The proposal could also help regulators define capital requirements more aligned with climate risks, especially in vulnerable regions—such as riverine, coastal, forested, or agricultural areas around the world. Read more.
🇺🇳 Insurance Sector Receives Global Roadmap to Address Climate Risks.
On July 2, 2025, the UN Forum for the Insurance Sector Transition to Net Zero (FIT) launched the first global guide specifically designed to help insurers, reinsurers, and brokers develop and communicate climate transition plans for their underwriting portfolios. Titled "Underwriting the Transition," the guide offers a structured and practical framework for transforming climate commitments into actionable strategies. The goal is to enable the insurance sector to act as a catalyst for a just and resilient transition to a net-zero economy, reaffirming its role as society's risk manager. Access it here.
OPPORTUNITIES
🌳🎦 Carbon treasure map: Where should we build clean energy next? A 5-minute video shows where new renewable energy installations could replace most fossil-fuel electricity generation. By the WattTime coalition, with Project Drawdown and The Nature Conservancy, using data from Climate TRACE. Watch the video.
🇪🇺📢 Invitation to join the group of experts who will help develop the standards and governance of European Union nature credits. Applications for the first selection phase must be submitted by September 10, 2025, at the latest.
🌍📢 Official UNFCCC call for experts wishing to work on the Paris Agreement's carbon credit mechanism, specifically under Article 6.4. Deadline: July 14, 2025. Details here.
🇧🇷❓CCS Brazil Association wants to hear from professionals about how the market is viewing Carbon Capture and Storage (CCS) technologies. Share your vision and participate.
EVENTS
🖥️📍July 22nd, UNFCCC update on the latest work by the Article 6.4 Supervisory Body and its Methodological Expert Panel. Register here by July 18th.
🇧🇷📍July 22nd and 23rd, 3rd edition of the Brazil Climate and Carbon Conference, by the Brazil NBS Alliance, in São Paulo. Meeting to foster dialogue, align strategies and unlock solutions regarding the regulation of the Brazilian Emissions Trading System (SBCE) and the opportunities brought by the COP 30 in Brazil. Stay tuned.
🇧🇷📍July 24, 1st Brazilian Conference on Greenhouse Gas Inventory, in Curitiba, Brazil. Addressing GHG inventory – Scopes 1 and 3, software and artificial intelligence applied to climate management, decarbonization and offset strategies, regulation, carbon market and SBTi targets, connections with the COP30 agenda. By Sinergia Engenharia and Ingee Inovação Sustentável. Registration here.
🇧🇷📍August 11, Fastmarkets Latin America Carbon Forum 2025. At the Renaissance Hotel in São Paulo, Brazil. Use code CCM15 for a 15% discount. Register here.
🏆 If you have an interesting story about carbon credits in your country, our audience already reaches over 100 nations! Send your message directly through our LinkedIn page .
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