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illuminem summarises for you the essential news of the day. Read the full piece on ESG Dive or enjoy below:
🗞️ Driving the news: A coalition of 30 businesses, nonprofits, and public sector organisations has launched the Carbon Data Open Protocol (CDOP) to enhance transparency and scale voluntary carbon markets
• The initiative, led by Global Carbon Market Utility, Sylvera, RMI, and S&P Global Commodity Insights, aims to standardise carbon credit data
• CDOP seeks to improve market integrity and align with global frameworks, including Article 6 of the Paris Agreement
🔭 The context: Voluntary carbon markets face challenges due to inconsistent data standards, which hinder collaboration and impact assessment
• CDOP will build on existing climate initiatives, including efforts by the Climate Action Data Trust and the World Bank’s Carbon Market Infrastructure Working Group
• The project aims to create shared definitions and governance structures to harmonise carbon crediting data globally
🌍 Why it matters for the planet: Standardising carbon credit data will boost trust in voluntary carbon markets, ensuring projects deliver real emissions reductions
• A more transparent system could drive greater investment in climate solutions, particularly in developing countries
• Enhanced cooperation under frameworks like Article 6.4 of the Paris Agreement is key to achieving global decarbonisation goals
⏭️ What's next: CDOP will work with stakeholders throughout 2025 to develop a set of principles and governance frameworks for maintaining the protocol
• The first version of CDOP’s framework is set to debut at New York Climate Week later this year
• If successful, the initiative could shape the future of voluntary carbon markets and accelerate emissions reductions
💬 One quote: “CDOP aims to create the processes and definitions for greater standardization, transparency, and fungibility to improve integrity and dramatically scale carbon markets.” – CDOP press release
📈 One stat: The global voluntary carbon market was valued at approximately $2 billion in 2023 and is projected to grow significantly as demand for high-quality carbon credits increases
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