Week of Aug 28, 2025 —ICVCM Drops First CCP Biochar Labels as SBTi Mandates 5-Year Reviews

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Key Market Movements (Aug 14-28, 2025):

• ICVCM delivered landmark approvals: First-ever biochar and enhanced IFM methodologies earned CCP labels, with Isometric issuing the world's first CCP-labeled industrial biochar credits

• SBTi strengthened corporate frameworks: New mandatory five-year review guidance took effect, with 227% surge in companies setting comprehensive climate targets

• VCMI updated Claims Code: Version 3.1 published August 14, refining corporate claim language for EU compliance

• Verra advanced CORSIA pathway: Howden appointed to assess insurance products for aviation-eligible credits, operationalizing the 2021+ vintage pathway

• Record retirement momentum: First-half 2025 saw historic 95 million credit retirements, with 57% holding BB+ ratings - signaling quality-focused demand

Key Developments (Integrity & Standards)

• ICVCM CCP Approvals (Aug 13): Approved three biochar methodologies (Verra VM0044 v1.2, CAR U.S./Canada Biochar v1.0, Isometric v1.0) and two IFM methodologies (Verra VM0045 v1.2, plus one conditional approval). First industrial biochar CCP credits issued by Isometric to Charm Industrial

Why it matters: Addresses quality sorting pain point by providing buyers clear CCP-labeled supply in high-demand biochar segment

• VCMI Claims Code v3.1 (Aug 14): Updated claims guidance with enhanced clarity on foundational criteria and organizational boundaries, aligning with SBTi requirements

Why it matters: Direct solution for EU/SBTi compliant claims wording pain point, providing safe language framework

• SBTi Guidance Overhaul (Aug 17): New mandatory five-year review guidance and expanded status categories (active, expired, archived) taking effect Dec 18, 2025

Why it matters: Reduces due-diligence burden by providing clear transparency on target status and review requirements

• Verra-Howden CORSIA Partnership (Aug 7): Global insurance intermediary Howden engaged to assess insurance products against Verra's CORSIA criteria for 2021+ vintage credits

Why it matters: Unlocks aviation compliance liquidity by operationalizing insurance pathway for CORSIA eligibility without corresponding adjustments

Prices & Liquidity

Key Price Signals:

• Premium for CCP-labeled credits: ~$27 spread for BBB+ rated projects over unrated

• CORSIA Phase 1 demand: 37% of Q2 2025 issuances potentially eligible, up from 28% prior year

• Nature-based ARR averaging $24 per credit, reflecting implementation costs and removal premium

Policy & Claims Watch

• EU CBAM Refinements: Commission continuing scope extension consultation through Aug 26, with 50-tonne threshold exemptions and anti-circumvention measures under political agreement

Corporate impact: EU importers of carbon-intensive goods face simplified but expanding compliance requirements from 2026

• Green Claims Directive Stalled: EU process paused in June 2025 due to EPP resistance over micro-enterprise burden, status unclear

Claims guidance: Companies should continue preparing for eventual ex-ante verification requirements despite delay

Corporate Demand Signals

• SBTi Surge: 11,000+ companies with validated targets (up 227% in 18 months), representing 41% of global market cap

• Industrial manufacturer dominance: One-third of SBTi commitments, over half validated in recent 18-month period

• Chinese acceleration: 450 companies with SBTi targets (tripled in 18 months), signaling major market expansion

Procurement takeaway: Buyers should expect increased competition for high-integrity credits as corporate adoption accelerates

Controversies & Risk Flags

• Developer complaints procedure: 60+ carbon project developers calling for overhaul of registry grievance processes, citing unfair suspension risks and insufficient anonymity protection

Due diligence impact: Heightened scrutiny of project suspension records and complaint histories in vendor assessment

Forward-Looking Signals (Next 4-8 weeks)

• ART TREES 3.0: Public comment period closes Sept 22, final publication expected late 2025

• Gold Standard consultations: Baseline determination (closes Aug 6) and suppressed demand accounting (closes Aug 22)

• EU CRCF methodologies: DACCS/BECCS/biochar draft open for feedback until Sept 22, Q4 2025 adoption planned

• CBAM scope expansion: Commission consultation closes Aug 26, legislative proposal expected end-2025