Drop in REDD projects confidence lowers the demand for nature-based solutions

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Forestry and Land Use credit projects are the most issued and retired type of carbon credits across trading platforms, but they have shown a decrease, in the last year, in both retirement volumes and prices (over-the-counter and spot). The reason for this drop is the lack of credibility in some projects, which caused demand to turn again to lower quality (but also lower prices) credits, such as renewable energy projects.

Change in retirement pattern

According to the U.C. In the Berkeley Voluntary Registry Offsets Database (VROD), which aggregates evidence from the American Carbon Registry (ACR), Climate Action Reserve (CAR), Gold Standard and Verra (VCS), the largest share of credits issued in these main platforms are from Forestry and Land Use projects (41.4%), with 25.1% of these credits from REDD+ technology. Followin...