News Rectification to the Voluntary Carbon Market Law 06/03/2024

The voluntary carbon market law has been rectified (Declaration of Rectification no. 15-A/2024/1, of 5 March).

First of all, the legal definition of "additionality" has been changed, requiring the fulfilment of only two cumulative criteria: i) the project's GHG emissions reduction or carbon sequestration must exceed the reference scenario; and ii) it must result from activities not required by law. The financial attractiveness of the project is no longer a mandatory criterion, thus significantly increasing the range of projects that can be eligible - something that we think will generate a lot of discussion.     

Secondly, it has been clarified that "carbon sequestration" can be carried out by three different methods: through biological, geological or technological long-term storage.  

Lastly, various legislative references have been corrected throughout the text of the law, which were incorrect.

This law continues to raise many doubts and questions, with the operationalisation and start-up of the voluntary carbon market dependent on the approval of methodologies, technical training on the part of the Administration and the private sector, as well as numerous regulatory acts.

To access the news about the Voluntary Carbon Market Conference organised by the GPA on 30 January: https://bit.ly/47YN7MP 

To re-read the News Flash on this topic: https://bit.ly/3RRdGxf