36th Week Carbon Credit Markets 2025. 🇰🇪 transforms atmospheric carbon into rock; 🇯🇵 leads; 🇧🇷 CVM clarifies rules; 🌎 ISO and GHG Protocol; 🌲carbon boreal forests; Cercarbono; SAF and more.
- Art Dam
- Sep 14
- 7 min read
Monday, 15 September 2025.
Highlights from the 36th Carbon Credit Markets 2025 week.
- Carbon Credits. 🇰🇪 Kenya is leveraging the natural resources of the African Rift Valley to turn atmospheric carbon into rock; 🇯🇵 Japan is leading an international mechanism for carbon credits with 28 partner countries; and 🇧🇷 CVM clarifies rules for the Regulated Carbon Market with a new FAQ: they are considered securities when traded in the financial market.
- Other Highlights. 🌍 ISO and GHG Protocol announce a historic partnership to standardize carbon accounting; 🌲 Chloris launches a new model to monitor one-third of the world’s forested area: the cold boreal forests 🧊
- Opportunities. Two public hearings: 🇨🇴 The new version of Cercarbono’s REDD+ Methodology v3.0 and the Climate Vulnerability Signals (Climate.VS) tool from Fitch Ratings to identify financial institutions with greater exposure to climate-related risks; new article by Dany Oliveira, highlighting that ✈️ Brazil has the potential to become the “Saudi Arabia of SAF”, despite the challenges.
- Events. Countdown to CBAM, Ethical Finance, Climate Week NYC, Hydrogen, JCM 🇯🇵🇮🇳 and much more.
CARBON CREDITS
🇰🇪 African Rift Valley: The Future of Carbon Removal Is Emerging in the Heart of Kenya
Octavia Carbon is leading a climate revolution in Kenya by developing direct air capture (DAC) technology for CO₂, powered by local geothermal energy and permanently stored in basalt rock through mineralization. This innovative approach harnesses the natural resources of the Rift Valley to turn atmospheric carbon into rock, offering a durable and scalable solution to the climate crisis. The recent 10-year offtake agreement, facilitated by Carbonfuture, marks a significant milestone, signaling market confidence and commercial viability of the technology.
Kenya is emerging as a global hub for carbon credits, with a spotlight on its ability to generate jobs and exports in the sector. According to BeZero Carbon, East Africa already accounts for 10% of global credit issuance, the highest ratio relative to global GDP. It’s estimated that this market could generate over US$ 1 billion in exports over the next decade and create more than 1.7 million carbon-related jobs.
Initiatives like Octavia Carbon, alongside others such as Sirona Technologies — which develops modular direct air capture (DAC) technology and is active in Kenya with the Jacaranda project — and Cella — a specialist in carbon mineralization and permanent storage, and a partner of Sirona — are positioning the country as a key player in the next decade of carbon removal.🎥 An inspiring video showcases this ecosystem in action: watch here. 🌍 To learn more about this transformative journey, visit:
🇯🇵Japan Leads International Carbon Credit Mechanism with 28 Partner Countries
The official website of the Joint Crediting Mechanism (JCM) showcases the initiative led by the Government of Japan to promote greenhouse gas emission reduction projects in collaboration with developing countries. The mechanism enables Japan to share low-carbon technologies and, in return, receive carbon credits that contribute to its climate goals. Participating countries include Indonesia, Vietnam, Mexico, Chile, India, Ethiopia, Bangladesh, Kenya, the Philippines, Thailand, and 18 other nations.
The portal outlines approved methodologies, registered projects, and issued credits, while also opening public consultations for new proposals. Thailand, for instance, features several recent initiatives such as solar systems in factories, heat pumps, and efficient cooling technologies. The JCM strengthens international cooperation on climate mitigation and ensures transparency through open data and regular updates. Follow along on the official site.
📘CVM Clarifies Rules of the Regulated Carbon Market with New FAQ
The Brazilian Securities and Exchange Commission (CVM) 🇧🇷 released a new FAQ on September 10 covering the Brazilian Emissions Trading System (SBCE), established by Law No. 15,042/2024. Featuring 13 questions and answers, the document provides clarity and agility for issuers, investors, and other capital market participants, explaining everything from the fundamentals of the cap-and-trade model to CVM’s role in supervising operations. The SBCE sets emission limits and enables the trading of assets such as Brazilian Emission Quotas (CBEs) — which represent the right to emit 1 ton of CO₂ equivalent (tCO₂e) — and Certificates of Verified Emission Reduction or Removal (CRVEs), which certify the reduction or removal of 1 tCO₂e. Both are considered securities when traded in financial markets, including voluntary carbon credits, and are subject to CVM regulation.
The document also details the governance of the SBCE, which will be managed by an entity linked to the Interministerial Committee on Climate Change (CIM), responsible for defining limits, allocating CBEs, and verifying projects. Implementation will be gradual, starting with large emitters (above 10,000 tCO₂e/year), with stricter requirements starting at 25,000 tCO₂e. Aligned with the goals of the Paris Agreement, the system aims to reduce emissions by between 59% and 67% by 2035, compared to 2005 levels. The voluntary market remains in effect, but with greater standardization and legal certainty for the CRVEs used in the SBCE.
Click below to download the FAQ.
It's worth remembering that this month, the US Financial Accounting Standards Board (FASB) 🇺🇸 also defined voluntary credits as an expense. Furthermore, a few days ago, the UNIDROIT Working Group held its sixth session to discuss the (international) legal nature of carbon credits. We'll have more information soon.
OTHER HIGHLIGHTS
🌍 ISO and GHG Protocol Announce Historic Partnership to Standardize Carbon Accounting
The International Organization for Standardization (ISO) and the Greenhouse Gas Protocol (GHG Protocol) have announced a strategic partnership to unify global standards for measuring and reporting carbon emissions. The goal is to create a co-branded set of standards that harmonizes key existing frameworks, such as the ISO 1406X family and the GHG Protocol's corporate and lifecycle standards. This initiative aims to reduce regulatory complexity and facilitate transparency in climate disclosures, benefiting companies, governments, and investors.
Furthermore, the collaboration includes the development of a new joint standard for product carbon footprints, meeting the growing demand for accurate data in supply chains. The partnership is seen as a decisive step toward simplifying carbon accounting and advancing global decarbonization goals.
Further details are available in the official statement: ISO and GHG Protocol Strategic Partnership.
🌲Chloris launches new Boreal Biomass model for forest monitoring.
Boreal forests—or taiga—occupy about a third of the global forest area and are crucial to climate balance, thanks to their vast carbon stores. Located in cold regions of the Northern Hemisphere, such as Canada, Russia (the world's two largest countries), Scandinavia, and Alaska, these forests are facing accelerated warming, above the global average, making them increasingly vulnerable to fires and permafrost thaw—phenomena that can release large amounts of carbon and intensify the climate crisis.
In response to this critical scenario, Chloris Geospatial has launched its new Boreal Biomass Model, an advanced tool for accurately measuring aboveground biomass in boreal regions. Using satellite data, airborne LiDAR validation, and field measurements, the model provides detailed estimates of carbon stocks and changes with a resolution of a few meters. This new development strengthens carbon projects, supply chains, and regulatory reporting in these countries. See Chloris Geospatial's call for proposals on LinkedIn here.
OPPORTUNITIES
🇨🇴 The new version of Cercarbono's REDD+ Methodology v3.0. The revision strengthens integrity, safeguards, and consistency with UNFCCC frameworks, reinforcing trust in REDD+ projects at the jurisdictional and project levels. Public consultation is open until September 25, 2025 (EN/ES).
⚠️ Climate Vulnerability Signals (Climate.VS). Fitch Ratings invites contributions to the development of a new approach for assessing climate risks in the financial sector. The preliminary document (exposure draft) presents Climate Vulnerability Signals (Climate.VS) as a screening tool to identify institutions with greater exposure to climate-related risks. This proposal follows on from the discussion paper published in April 2025 and is open for comments until October 3, 2025, by email to criteria.feedback@fitchratings.com.
✈️ Brazil has the potential to become the "Saudi Arabia of SAF"—leading globally in the production of Sustainable Aviation Fuel thanks to its clean energy matrix, abundant biomass, and biofuels expertise. But as expert Dany Oliveira points out, the country still faces challenges such as high costs, low supply, and the need for robust investment. With international climate targets coming into effect in 2027, Brazil needs to transform this scenario into an opportunity—and the article shows how innovation, public policies, and strategic collaboration can be the way forward. The article is worth reading on PANROTAS or downloading below, a copy kindly provided by the author, whom we met at the 30th edition of the SAE BRAZIL International Mobility Congress and Exhibition, panel "Flying green with sustainable fuels." Here's another article by Dany on LinkedIn showing the annual evolution of SAF agreements.
EVENTS
🖥️📍September 17, Countdown to CBAM 2026: How Businesses and Industries Are Getting Ready. OPIS experts detail the effects of CBAM on carbon trading and pricing, with guidance for maintaining competitiveness under the new rules.
🏴📍September 17, Ethical Finance Global 2025: Retreat, Recalibrate, or Revitalise? In Edinburgh, Scotland.
🇺🇸📍September 21-28, Climate Week NYC 2025.
🇺🇸📍September 22, 2025 Forbes Sustainability Leaders Summit. Online or in-person in New York.
🇪🇺🖥️ September 22, Innovation Fund Webinar – IF25 Hydrogen Auction. European Commission’s Directorate-General for Climate Action will cover the draft Terms and Conditions (T&C) for the upcoming 2025 Hydrogen Production Auction under the Innovation Fund (IF25 Hydrogen Auction).
🇮🇳🇯🇵 September 23, Business Consultation Meeting on the JCM (Joint Crediting Mechanism) Process with Private Companies. In Hyderabad, India.
🇧🇷📍September 26. Visit to Aquapolo Ambiental, one of the largest water reuse projects in South America. Organized by IBGC - Brazilian Institute of Corporate Governance.
🇧🇪📍September 29–October 3, European Hydrogen Week #EUH2Week2025. In Brussels, Belgium.
🇧🇪📍September 30, Climate action that works for you – An agenda for competitiveness, prosperity and resilience. At the European Commission’s Charlemagne building in Brussels.
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