News
Shell doubles carbon offset purchases. To reach its 2050 net-zero target, Shell will be purchasing more offsets while abandoning its own project development program. About 90% of the company’s purchases in 2023 have come from forestry projects, as Shell focuses on nature-based offsets. The 2023 purchases make Shell one of the largest publicly disclosed buyers, along with Delta Airlines, Volkswagen, TotalEnergies, and Chevron.
Amazon increases investment in forestry projects. Amazon is intensifying its investment in the Amazon rainforest through two new agroforestry projects to fulfill its 2040 net-zero pledge. initiative aligns with Amazon's Climate Pledge goals, with generated carbon offsets potentially entering the voluntary carbon market.
South Pole drops Kariba REDD project. Swiss-based project developer South Pole has withdrawn from the Kariba REDD forest protection project in Zimbabwe following allegations of trophy hunting and financial malpractice. Certifier Verra, which had certified the project, halted credit issuances and launched an investigation in response to these allegations. The move has significantly impacted offset prices from the Kariba REDD project, which were reported to be close to worthless after the news.
Issuances up; retirements down
21.92 million offsets were issued in September, up by 4.5 million from August. Retirements fell slightly from 9.62 million to 9.10 million. Both issuances and retirements have a tendency to trend higher on average into the end of the year.
Waste and Landfill projects continue to gain a larger share of issuances
Waste and Landfill projects accounted for 18% of issuances, up from 7% in September. Waste and Landfill retirements remained at 6% of all retirements. The percentage of issuances in this category has grown significantly over the past few months, accounting for only 4% in August.
The surplus of unused offsets increased by the smallest amount so far in 2023
The bank of offsets increased by 12.81 million tons in October, driven by higher issuances and slightly lower retirements.