31st Week Carbon Credit Markets 2025. Chile, Madagascar, Indonesia, UAE, Guyana, and Brazil; regenerative agriculture; climate factor for banks; CDP and SBTi investigated; SB COP Awards COP30 and more
- Art Dam
- Aug 10
- 7 min read
Updated: 2 days ago
Monday, 11 August 2025.
Highlights from the 31th Carbon Credit Markets 2025 week.
- Carbon Credits. See how countries like Chile🇨🇱, Madagascar🇲🇬, Indonesia🇮🇩, United Arab Emirates🇦🇪, Guyana🇬🇾, and Brazil🇧🇷 — are advancing the regulation and implementation of carbon markets, with initiatives ranging from community projects and reforestation to jurisdictional systems and financial sector support.
- Other Highlights. While Brazil🇧🇷 mobilizes R$31.4 billion to restore degraded areas through regenerative agriculture🚜, the European Central Bank🇪🇺 introduces the “climate factor” to adjust the value of assets according to climate risk, the European CBAM pressures Latin American exporters, and 🇺🇸Florida investigates CDP and SBTi for alleged market abuse, revealing tensions🚨.
- Opportunities. 🏆The SB COP Awards, which brings together more than 60 industry and trade federations from various countries, is seeking private sector initiatives to present at COP30, as well as Amcham Brasil's BPMA; FecomercioSP launched a free ESG checklist to support companies in the green transition; and Veolia highlights concrete innovative solutions in biogas and biomethane.
- Events in August. 📅 The Geological Unicorn of Ionic Clays (Aug 19); Accessing High-Integrity Carbon Markets on the Road to COP30: A Toolkit for Policymakers. (Aug 21); IETA Latin America Climate Summit (Aug 26–28) and Carbon Derivatives Seminar (Aug 28 to Oct 30)
Here the details.
CARBON CREDITS
🇨🇱🌱 Chile Moves Closer to National Regulations for Article 6 of the Paris Agreement.
Chile is close to implementing its legal framework for participating in the international carbon market, in accordance with Article 6 of the Paris Agreement. Regulation No. 32, which defines the criteria for issuing and transferring greenhouse gas reduction or absorption certificates, was submitted on July 30, 2025, to the Contraloría General de la República to initiate the “toma de razón” process—the final step before official publication. Once in effect, the regulation will allow local projects to generate globally tradable carbon credits, strengthening the country's climate position and attracting sustainable investments.
🇲🇬🌿 Madagascar Bets on the Carbon Market with Community Projects and Reforestation
The carbon offset market in Madagascar is booming, driven by reforestation, conservation, and environmental restoration projects. Despite this growth, only a few projects have advanced to official registration, and many face challenges such as land disputes, a lack of transparency, and impacts on family farming. The diversity of projects, ranging from large international initiatives to local community initiatives, reveals a promising scenario, but one that requires effective regulation to avoid risks such as "greenwashing" and ensure real benefits for local populations. Read an Enerzine.com article here about the recent revision of decree 2025-626, which expanded access to the generation and trading of carbon credits, allowing various stakeholders—public, private, and community—to participate in the sector.
🇮🇩 Indonesia Advances Carbon Market with Financial Sector Support
The Indonesian Financial Services Authority (OJK) report highlights the growth of the country's carbon market since its launch in September 2023. As of July 2025, 116 licensed users were registered, with a total trading volume of 1,599,357 tCO₂e and a cumulative value of IDR 77.95 billion. Additionally, the OJK released the book "Introducing and Understanding Carbon Trading for the Financial Services Sector," which provides practical insights into the principles, regulations, and mechanisms of carbon trading, reinforcing the strategic role of the financial sector in building a sound and effective carbon market. See details from the OJK Monthly Board of Commissioners Meeting in July 2025 here.
🇦🇪 UAE Regulates Carbon Credit Market with New Decree-Law
Federal Decree-Law No. 11 of 2024, which comes into effect on May 30, 2025, establishes a robust framework for tackling climate change in the UAE, highlighting the creation and regulation of the carbon credit market. The legislation establishes the National Carbon Credit Registry, defines mandatory and voluntary offsetting mechanisms, and authorizes emissions trading and carbon pricing (shadow pricing) activities. Furthermore, the decree provides incentives for carbon capture, utilization, and storage (CCUS), clean energy, and reforestation projects, positioning the UAE as a future regional hub for climate finance and environmental innovation. Read the full text here Federal Decree-Law on the Reduction of Climate Change Effects – UAE Legislation.
🇧🇷 Acre, in partnership with Standard Chartered Bank, will launch up to 5 million jurisdictional carbon credits starting in 2026.
Registered on the ART-TREES platform and recognized for their high environmental integrity, these credits are generated based on reduced deforestation and represent a state-wide approach, ensuring greater credibility and climate impact. Furthermore, 72% of the net proceeds will go to local and Indigenous communities, reinforcing the commitment to social justice and forest conservation. Read the press release here.
🇬🇾🇧🇷🌳 ART Registry: Initiatives from Guyana and Brazil in Continental-Scale Territories.
As we promised last week in the article "Examples of Article 6 Registrations", today we'll discuss some impressive projects registered with the ART - Architecture for REDD+ Transactions - Registry.
A few months ago, an ART Registry methodology, ART TREES, enabled Guyana to generate the world's first carbon credits aimed at offsetting aviation emissions, for use by airlines in the voluntary phase of the international CORSIA program (2021–2026). This also has the potential for a mandatory phase. With over 50% of its original forest cover preserved and annual deforestation rates below 0.22% per year, ART recognizes Guyana as both a High Forest Cover, Low Deforestation (HFLD) jurisdiction and a high-integrity carbon credit provider. Suriname and Gabon are also considered HFLD jurisdictions.
In Brazil, there are already 7 states listed in the ART Registry with projects for jurisdictional carbon credits: Tocantins, Maranhão and Amapá since 2016, Acre and Pará since 2023 and Mato Grosso since 2024.
Click here to access details about the respective projects. The following "Accounting Areas (ha)" are indicated, as well as some documents about each project:
84,137,082 Pará
43,166,863 Mato Grosso
18,151,564 Tocantins
14,396,585 Acre
11,059,000 Amapá
6,451,432 Maranhão
In other words, totaling over 177 million hectares, an area larger than Peru🇵🇪 and almost the size of Iran🇮🇷. If it were a country, it would be among the 20 largest in the world in terms of territorial extension.
If you would like to learn more about these jurisdictional carbon credit projects in Brazil, see this LinkedIn post by Olivia Marques.
OTHER HIGHLIGHTS
🇧🇷🌾 Regenerative Agriculture Raises R$31.4 Billion to Restore Degraded Areas in Brazil
The Eco Invest Brasil auction attracted R$17.3 billion in catalytic capital, with the potential to generate R$31.4 billion in investments focused on regenerative agriculture and the recovery of 1.4 million hectares of degraded areas. The initiative, which involved 11 financial institutions, is part of the Brazilian government's Ecological Transformation Plan and aims to restore soil, increase food security, and promote sustainable practices that balance agricultural production with environmental preservation. See the press release here.
🇪🇺OPIS analyzes what the European CBAM means for Latin American exporters.
The European Union's CBAM will impose tariffs on carbon-intensive products starting in 2026, affecting Latin American exporters of steel, aluminum, fertilizers, and cement. Countries with high emissions, such as Brazil and Venezuela, could lose competitiveness, while others with cleaner production, such as Chile, stand to benefit. The measure puts pressure on the region to adopt more robust climate policies. Read the full OPIS article.
🇪🇺European Central Bank introduces "climate factor" and redefines the value of financial assets in the face of the climate crisis
The European Central Bank announced that, starting in 2026, assets used as collateral in refinancing operations will have their value adjusted according to the associated climate risk—a measure known as the climate factor. This means that bonds of companies with a high carbon footprint may be worth less as collateral, putting pressure on banks to reevaluate their portfolios and encouraging a faster transition to sustainable business models. The initiative marks the first direct integration of climate risk into the European monetary policy infrastructure, with potential impacts on credit, investment, and financial stability.
⚖️ Florida Investigates CDP and SBTi for Alleged "Climate Cartel" and ESG Abuse
Florida Attorney General James Uthmeier has launched an investigation into CDP and SBTi, accusing them of deceptive business practices and possible antitrust violations. He claims these entities form a "climate cartel" that pressures companies to pay for services that influence their ESG scores, affecting access to capital and investor decisions. The investigation seeks to determine whether there is market manipulation, undue favoritism, and corporate coercion under the guise of environmental transparency.
OPPORTUNITIES
🏆 The SB COP Awards recognize private sector projects that truly work. In addition to being included in the official e-book, selected projects may be presented in the COP30 blue zone, increasing their global visibility. The goal is to document all initiatives by mid-September 2025, strengthening advocacy efforts with key decision-makers. The SB COP brings together more than 60 industry and trade federations from various countries, representing approximately 40 million companies—a collective force with real transformative potential. 📎 Check out the selection criteria at this link and participate.
🇧🇷📝 Free ESG checklist to support companies in their sustainability and governance agenda. The Federation of Commerce of Goods, Services, and Tourism of the State of São Paulo has launched this free tool to help companies of all sizes and sectors assess their level of maturity in environmental, social, and governance practices. Learn more.
🇧🇷🏆 Amcham Brasil is now accepting applications for the 5th edition of Brazil for the Environment (BPMA), which promotes business initiatives focused on sustainability and low carbon. With COP30 in Brazil, the projects registered will gain international recognition. Since 2021, the program has generated 280 projects and R$30 billion in investments. 📅 Applications open until September 1st.
🔹 Transforming Waste into Clean Energy. In an interview with the GRI Institute, Breno Palma, director of Veolia, highlights how the company is revolutionizing waste management in Brazil with biogas and biomethane projects, tackling regulatory challenges and driving industrial decarbonization. Watch (in Portuguese).
EVENTS
🇧🇷🖥️ August 19, The Geological Unicorn of Ionic Clays in Poços de Caldas and the Regulatory Challenges of Extracting Rare Earths. By APEMI, São Paulo, Brazil. Details here.
🖥️📍21 August, Accessing High-Integrity Carbon Markets on the Road to COP30: A Toolkit for Policymakers. VCMI webinar in partnership with Climate Vulnerable Forum–V20 and United Nations Development Program. Register.
🇧🇷📍August 26-28, IETA Latin America Climate Summit, in São Paulo, Brazil. Details and registration here.
🇦🇺📍August 28 to October 30, Carbon Derivatives Seminar. A free seminar series explores how derivatives can support companies in managing carbon emissions risks and obligations, focusing on carbon futures and their role in the climate market. A partnership between the Carbon Market Institute and the Australian Securities Exchange (ASX). In-person, various dates and cities across Australia. Details 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 .
Sign up at www.carboncreditmarkets.com to receive insights, news and media updates.
