Carbon Market Faces Upheaval as 32% of All Credits Fail Test (1)

The market for carbon offsets faces renewed upheaval after a major category of credits failed to win approval from a key oversight body.

The Integrity Council for the Voluntary Carbon Market has decided that its Core Carbon Principles label can’t be used on carbon credits issued under existing renewable energy methodologies. The move affects about 236 million credits, or 32% of the market, the ICVCM said in a statement on Tuesday.

The development has the potential to deliver a serious blow to a market that’s already contracted by almost a quarter from a 2022 peak. But it’s also the latest ...