It’s been a bumper yr for the voluntary carbon market — company commitments are up, 70% extra credit have been retired to date this yr vs. final yr, and developments in decentralized finance are setting the stage for an thrilling 2022. We crunched the numbers to focus on the winners and losers of the yr — at the very least by way of the variety of credit retired.
There are lots of methods to gauge curiosity in a venture, and the metric we’re utilizing are credit retired — it’s not the right system as credit could have been purchased from a venture however not but retired, however general it’s a good proxy. It’s additionally the information that’s publicly obtainable, so it permits us to clarify comparisons of how effectively initiatives have performed this yr vs. final yr. (To maintain the information constant, we’re evaluating the numbers from January 1 to December 14, 2020 towards the identical timeframe in 2021.)
These are the initiatives, sectors, nations, and registries which have seen the most important rises in credit retired to date this yr.
The venture that noticed the most important rise within the variety of credit retired is… 29.70 MW Wind Energy venture in Karnataka India!
The venture retired only one credit score in 2020, and 270,000 in 2021, pushed by decentralized finance curiosity from KlimaDAO. That single credit score final yr was retired by Grupo CIMD for its emissions in 2019.
The venture that had the most important rise amongst these initiatives with at the very least 1000 credit retired in 2020 was Biocorredor Martin Sagrado REDD+ Venture, which retired over 240,000 tons of carbon to date this yr — with Ben & Jerry’s and Chanel amongst its prospects.
The registry that noticed the most important rise within the variety of credit retired is… Verra!
The registry has handed the 115m tCO2e retired mark, up ~80% from final yr’s 64m quantity.
Forestry initiatives overtook renewables this yr on Verra, with over 60m tCO2e retired to date in 2021 (28m in 2020), versus 49m tCO2e retired from renewables initiatives (33m in 2020).
The nation that noticed the most important rise within the variety of credit retired is… Nigeria!
After retiring nearly no credit in 2020, initiatives in Nigeria retired 200,000+ this yr. Extra precisely, Gold Customary’s CORSIA-eligible Selling Improved Cooking Practices in Nigeria is, by our rely, the one venture at the moment recording any retirement exercise within the nation, making up all the credit retired in 2020 and 2021.
Even in a market that’s rising quickly, not everybody goes to win out. Listed below are the venture, registry, and nation dropping out in 2021.
Plenty of initiatives have retired credit final yr, however none this yr — we’ll assume that they’ve bought out their stock and haven’t issued any new ones. From people who have retired at the very least one credit score this yr, the one which had the most important drop is… Reforestation of Degraded Land in Chhattisgarh, India.
The venture retired 19,000+ tCO2e in 2020, however solely a measly 4 tons in 2021. It does have 10,000+ tons of carbon remaining, however the overwhelming majority of that’s from 2005 and 2007 vintages — not the best sale!
The registry with the most important drop this yr has been… Local weather Motion Reserve, down 28% towards final yr’s retirements (5.1m tCO2 in 2020 vs. 3.7m in 2021).
Neither of the US registries have fared effectively, with each down vs. retirements this yr. One shiny spot for CAR — Agriculture initiatives retired 130,000+ tCO2e in 2021, towards 78,000 tCO2e in 2020.
The nation with the most important drop this yr has been… Mongolia, down 95% this yr. (Amongst nations whose initiatives retired at the very least 1,000 tCO2e in 2021.)
The principle perpetrator for that is 50 MW Tsetsii Wind Farm in Mongolia, which retired 170,000 tCO2e final yr, however simply over 1,000 tCO2e to date this yr. A CORSIA-eligible venture, I’m betting issues will flip round for it in 2022.
For these on the good listing — 2021 has definitely been a yr to recollect. For these on the naughty listing — the excellent news is that there are nonetheless two weeks within the yr to make your mark!
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