Alessandro Vitelli

Shell, Nestle among companies turning away from carbon offsets 

Media reports raise quality concerns over some carbon reduction projects 

UN and many emerging economies still planning to set up carbon offset markets  

• Companies to be required to buy carbon credits to cover emissions.
• Domestic credits may also be sold abroad.
• Market could cover 4,000 installations.

• Electricity generation accounts for almost half of all demand for EU emissions allowances.
• Public power generation across the EU has fallen 3.5% year-on-year.
• ICIS expects EUA prices to end the year at €81 per tonne.

• Shell has shut down a programme to buy as much as USD 100 million carbon credits per year.
• Renewable energy credits are presently trading at as little as USD 1 per tonne.
• According to The Guardian, “REDD+” projects overstate their success in preserving trees”.

• CBAM reporting will cover a transitional period from 2023 to 2025.
• “Embedded emissions” in shipments of imported materials will be monitored.
• Failure to comply will result in penalties of €10-€50 per tonne or higher.

• UK carbon allowance price falls 50% since March.
• UK carbon price now around half of the equivalent EU emissions scheme.
• Exporters from the UK to EU may face climate surcharge in the future.