Sean Kidney

🇺🇸 🙌 Today is a historic day for the VCM - the day the US Government weighed in. And the incredible news is that they have, in my humble opinion, struck the perfect balance between (i) recognising the challenges the market currently faces, in particular on credit quality; (ii) noting the important developments in the market which are tackling these issues, including "New and improved analytical products and services that aim to strengthen credit transparency and quality comparability, such as carbon credit rating services"; (iii) calling out the important potential the VCM has to play a material role in tackling the climate crisis; and (iv) listing a series of very specific actions being taken to help realise the vision set out. I think today will mark a turning point for the market: a clear marker in the sand that high integrity is non-negotiable, but if the market can make it the norm, then it will have the full backing of the US. I hope other governments emulate this progressive, pragmatic line. Back in my policy making days I would have been proud to draft something as clear, robust and elegant as today's announcement - to get it signed off by all the key government departments, and presented at a high profile event (starting in a few hours), is a truly impressive achievement. Hats off to them!

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The Legal Framework for Impact lays the legal foundations for investing for impact, highlighting the importance of attending to systemic risk.

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🎥 The Carbon Exposure Project is back for Season 2! For Episode 1, I was fortunate to speak with Lorna Ritchie - Director of Public Affairs at the The Integrity Council for the Voluntary Carbon Market (ICVCM). Since we shot this episode in Florence during the IETA European Climate Summit in mid April, there have been some terrific updates. In May, The Integrity Council Governing Board approved two additional programmes: 1. The Verified Carbon Standard (VCS, operated by Verra) the world’s largest carbon-crediting program, and 2. The Architecture for REDD+ Transactions (ART)+, operated by Winrock International) program. These programs join ACR at Winrock International, Climate Action Reserve (CAR) and Gold Standard, as the CCP-Eligible Programs under the ICVCM. Together these five programs have a 98% share of the voluntary carbon market! The next crucial step involves assessing the methodologies used by CCP-Eligible programs to issue CCP-labeled credits. Over 100 methodologies across 29 categories are being evaluated, representing more than half the volume of credits in the market. This thorough process, following the Integrity Council's "two-tick" approach, aims to ensure that only approved methodologies generate credits labeled with CCP. The Governing Board anticipates announcing the first methodologies meeting CCP standards in June, signalling the imminent entry of CCP-labeled credits into the market. The episode can be watched and listened to on YouTube and Spotify: YouTube: https://lnkd.in/eudYyJKF Spotify: https://lnkd.in/egAZ8mXS Enjoy the episode! #vcm #icvcm #integrity #carbonmarkets #netzero

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The Science Based Targets initiative (SBTi) has updated its guidelines to allow a broader use of environmental attribute certificates, including carbon credits, to address Scope 3 emissions in their net zero target framework. This pivotal update aims to enhance corporate efforts in tackling the most challenging emissions that occur outside direct control, like those from supply chains or product use. "Recognizing the complex nature of Scope 3 emissions, the expanded use of certified credits will help companies achieve more robust and scientifically aligned net zero targets," states the Science Based Targets initiative board. This change is expected to significantly influence the carbon credit market and assist companies in meeting ambitious climate goals. Learn more about the revised standards and their implications here: https://loom.ly/Cd2Dt4o #SustainabilityinAction #ESGSummitEurope2024 #NetZero #ClimateAction #SBTi

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We need a Carbon Regulator, but setting one up will not be without its challenges. Check out why regulation, and the implementation of new regulators, is challenging (but also necessary for emissions data) in my latest blog... #carbonaccounting #regulation https://lnkd.in/eHzqBNkk

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Hugh Wheelan brilliant work as ever. Getting into the guts of it as the mass #ESG rating cull continues? Daniel Cash you got a view? I’ve often framed the last ten years of #ESG as the Klondike Gold Rush phase. The circa U$ 53 billion service industry which has grown up around ESG is made up of the equivalent of the shovel, pail, rope, wheelbarrow, and coffin sellers, who made $$$ ahead of the early miners. At the darker end of the ESG service industry it’s the bar and brothel owners making filthy lucre and who cleaned up in the Klondike as contrasted with most miners who left penniless or worse. Guess whose family made its first money at the mucky end of the Rush…..errr Trump. https://lnkd.in/evvKGGFc Stretching the metaphor: the actual ESG gold miners would be those #entrepreneurs, #SMEs, corporates, industrialists, governments - sovereign and state level - and communities delivering impact rather than those talking, commenting, measuring, thinking about #ESG . Absolutely both are needed but there’s been too much focus this past decade, understandable for an industry in formation, on the service providers. I’m an optimist: the next ten years of #ESG - as just one of the multiple and varied tools we must use to deliver actual sustainable development as defined by the #UNSDGs - will be one of impact where the real ESG miners reap their rewards. Thanks for the on-going Hugh Wheelan brilliance. It seems a long, long time ago when you, Tony and I sat in a dark London bar discussing capitalisation of the early RI. You deserve every atom of your hard earned success. I know you’ll keep it up.

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As forecast by Greenwich Forum experts, asset owners incl. #centralbanks and #SWFs buying #gold and #energy assets: what are they telling us about the future? #JoinUs #21_22_October g20pensions.org 👑GreenwichSummit.org Future of Investing European Finance Week UK & EU #Pensions #fiduciary #LaborAndCapital #viamedia Impact Forum #impactforum #impactful

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Taxing fossil fuels is a bad idea, particularly from a social justice perspective. Pricing carbon-equivalent emissions is the right approach. 'Pricing' is best done with a levy on all emission-types (at source, and at the border). The levy must then be disbursed in equal amounts to all residents. If a tax is applied to raise government funds (aka 'climate finance', whatever that is), it's the poor who suffer (as a substantial share of their living expenses is affected). If a levy is disbursed, it's the poor who benefit (their emission footprint is smaller than that of rich households, hence they benefit from equal/average payouts). Also, just going for 'oil majors' isn't smart. As seen in the case of sanctions, etc, 'majors' find 'minors' for the dirty work. Furthermore, it's not just about fossil fuels, but its about all types of GHG emissions. #climateincentive #now https://lnkd.in/dvRwX__i

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An excellent article, thank you Guy, however to address your point about financial markets and leadership specifically, that is vision and clarity of implementation, what could be said about regulated carbon markets which would set some clarity among these identified and sometimes divergeant NGO’s? Well there is no point in having statute if the vision of financial markets is not coherent with that statute. I assert specifically the mildewed approach to bond prospectuses, the province of governance of stock exchanges like LSEG, for example the idea of SLBs a good one, evinced by ENEL’s interpid approach to responsibility (their annual Sustainability Report is over 500 .pdf pages long) should surely be the standard of ALL bond prospectuses, public and private issuance then we would see the seismic effect in secondary markets on existing bonds that do not meet that carbon emissions metric. Someone tell me what is wrong with philosophical commitment to a necessary goal?

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An important milestone for The Integrity Council for the Voluntary Carbon Market (ICVCM), allowing the VCM 2.0 to continue to scale with true integrity and impact.

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I was in the room where it happened last week. The White House sent 3 cabinet members & several senior climate advisors to announce a set of principles to strengthen the integrity of the voluntary carbon market (VCM), and I was lucky enough to be in the front row for the presentation and host a top tier press briefing immediately after with the most influential voices in the VCM. Many in my network are on the energy transition side of things, so for those who haven't been tracking the voluntary carbon market, here are 3 things I've learned since taking a deep dive into the sector. 1️⃣ - The VCM has created pathways to direct billions from the Global North to climate saving projects and communities in the Global South. The UNDP says the world needs trillions in finance for countries to meet their NDCs, and this cash simply won't flow to the frontlines of the climate crisis without a functioning market for carbon credits. 2️⃣ - Yes, fraud has occurred in the VCM, but name a market where fraud doesn't happen. Welcome to capitalism ya'll. VCM regulators are not shying away from these problems. Instead, they've worked to improve oversight in the market, and universally applauded the White House call for greater integrity. 3️⃣ - You can get into an academic argument about additionality (whether a carbon credit project delivers emissions reductions that wouldn't have happened anyway) or permanence (how long a project sequesters carbon), but what you can't argue about the VCM is: (a) the projects are preventing carbon from going into the atmosphere - they are keeping trees standing, for example, period, and (b) these projects have very real non-climate co-benefits. I've been moved by the first-hand stories from people whose lives have changed because #CarbonCreditsWork. Read about the White House guidance here: https://lnkd.in/e-euBbrX

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🌍📈 Thrilled to share my latest article, "How Digitalisation is Revolutionising Sustainability?" featured in the Global Briefing Report Review for COP27 and COP28. Key takeaways: 🔄 Sustainability and digitalisation are not fleeting trends—they're permanent fixtures. 🔗 Beyond cryptocurrency, blockchain is a pivotal tool for sustainable transformation. 🚀 Together, blockchain and AI are set to revolutionize industries, especially banking, accelerating our journey towards sustainability. 🌱 At Liechtenstein Bankers Association (LBA), we're committed to leading this change and driving the industry forward. 🔍 Our focus remains on staying relevant and enhancing our services for the greater good. Let’s embrace technology to create a sustainable future. Excited to be at the vanguard of this transformation with my colleagues at LBA. https://lnkd.in/esc7XDG3 Many thanks again to Group of Nations and Chris Atkins! #Digitalisation, #Sustainability, #Blockchain, #AI, #Finance, #SDGs, #transformation, #COP

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There's news, and there's news. And then sometimes there is VERY BIG NEWS. An explicit endorsement by The White House supporting voluntary carbon markets falls into all-caps big bucket. The focus on high integrity, MMRV and a global market are particularly important in my opinion. Carbon removal and carbon markets is really not rocket science, and we should have to clearly evidence our impact. Supporting a market for international & cross-border trade of carbon credits is the best way of ensuring an equitable transition. This is a much needed and well-timed announcement, time to get to work!

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This is a very impressive and important study highlighting a key strategic policy angle in climate policy: Net zero technologies are highly capital intensive and require a focus on up-front investments in infrastructure and clean technologies in the next phase of policy design. But once the investments are secured - which is not an easy task and needs good policy and policy making - the path forward gets easier.

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Financing is urgently needed for climate adaptation and resilience, but investors are struggling to agree on metrics for tracking effectiveness and impact. Great deep dive into a very timely topic by Louie Woodall for Responsible Investor. #climateadaptation #climatefinance #esginvesting

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Friday saw the second round of organisations announced as early adopters of the Taskforce on Nature-related Financial Disclosures (TNFD) and it included investor giants Legal & General Investment Management (LGIM) MUFG and Generation Investment Management The 96 additional organisations committed to reporting in line with the TNFD over the next two financial years, brings the total number of early adopters to 416. 114 of these are financial institutions. At the launch event, early adopters noted challenges in data quality and availability - particularly obtaining data from value chains. Esther An chief sustainability officer at City Developments Limited said technology is often "not cheap" and it can be difficult to prove to boards why it is necessary to approve funding for data. Read more here: https://lnkd.in/eiVsTSZP

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The voluntary carbon market (VCM) has played a crucial role in deploying private capital for climate action.  Organisations like the Climate Action Reserve, and Verra have established rigorous standards to ensure the integrity of carbon credits.  These standards require real, additional, and permanent greenhouse gas (GHG) emissions reductions.  By adhering to these guidelines, registered projects can earn high-quality carbon credits that contribute to addressing the climate crisis.  Transparency, effective governance, and third-party verification are key components of these standards, fostering trust and confidence in the market.   VCM and the compliance market (CCM) serve distinct purposes, but there are ongoing discussions about their convergence.  The VCM allows organisations and individuals to voluntarily offset their carbon emissions by purchasing carbon credits.  These credits represent verified emissions reductions from projects such as reforestation, renewable energy, or methane capture. Companies, governments, and individuals participate voluntarily. VCM standards ensure the credibility of credits, with limitations. Participants can choose projects aligned with their values. VCM credits lack rigour, leading to legitimate concerns about greenwashing.   CCM are mandatory systems where regulated entities must meet emission reduction targets or buy allowances. Strict regulations ensure emissions reductions are genuine. Non-compliance results in penalties. I propose linking VCM credits to CCM credits, allowing VCM credits to be used for compliance. Aligning standards and methodologies across markets could enhance transparency and credibility. The VCM is rapidly outliving its usefulness. While both markets play vital roles, convergence could strengthen climate action by combining voluntary efforts with mandatory targets. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

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Good to see more progress from colleagues at The Integrity Council for the Voluntary Carbon Market (ICVCM) in efforts to build end to end integrity in the VCMs. The helps the buyers VCMI focuses on identity high integrity credits. https://lnkd.in/dJMSNxus #carbonmarkets #integrity #climatefinance

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CDP's 2023 Climate Transition Plan Disclosure is out! Here are the key takeaways: - Climate transition plan indicators are converging across major frameworks like CDP, International Sustainability Standards Board (ISSB)'s IFRS S2 (TCFD), EU's ESRS, U.S. Securities and Exchange Commission Climate rules, UK's TPT, GRI, and Glasgow Financial Alliance for Net Zero (GFANZ). - Sectors that inherently focus on long-term strategic planning and sustainable returns, such as power generation (32%), financial services (30%), and infrastructure (24%), are leading in climate transition disclosures. - Climate transition plans appear to be a higher priority for companies that are publicly listed. Europe's FTSEurofirst 300 (77%) and Korea's KOSPI 200 (74%) are top-performing climate transition disclosure indexes. - The companies that disclosed to CDP that they would develop a climate transition plan in 2021, only 44% established a plan by 2023, with just 25 disclosing plans credibly. We are in the most critical decade of environmental action. Companies are grappling on how to take meaningful climate action and be Paris aligned. Do you think the convergence of climate transition frameworks will accelerate the rate of companies to develop climate transition plans in the next year? #CDP #ClimateChange #ClimateStrategy

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