Carbon capture to bridge the gap between natural gas and carbon markets

illuminem summarises for you the essential news of the day. Read the full piece on Carbon Herald or enjoy below:

🗞️ Driving the news: As AI-driven data centre growth pushes up natural gas demand, Verra has introduced a new methodology to bring carbon capture and storage (CCS) at natural gas processing facilities into the voluntary carbon market

🔭 The context: Gas demand is rising alongside decarbonisation pressure
• Rapid expansion of AI and data centres is driving demand for reliable, always-on power, increasing reliance on natural gas
• Major tech companies are securing long-term gas-linked power supplies — including Google and Microsoft — even as they pursue net-zero goals
• Carbon capture at gas plants has historically been expensive and dependent on government incentives
• Policymakers and analysts, including the International Energy Agency, see CCS as a potential bridge where renewables and grids lag demand

🌍 Why it matters for the planet: Industrial emissions move into carbon markets
• Verra’s new module, VMD0062, expands its VM0049 CCS framework to cover CO₂ captured during natural gas processing, where carbon would otherwise be vented
• This marks a shift from pure carbon removal pathways toward industrial, fossil-linked applications
• Eligibility now includes both existing and new gas processing facilities, potentially scaling participation in major gas-producing regions
• The move aims to connect voluntary carbon credits more directly to large, measurable emission sources

⏭️ What’s next: Credibility will determine uptake
• CCS-linked credits could grow as tax incentives and policy support improve project economics
• Market acceptance will depend on confidence in permanence, monitoring, and verification
• The debate over gas’s long-term role in a carbon-constrained world will shape demand for these credits
• Verra says additional CCS modules and tools are in development under VM0049

📈 One fact: Natural gas processing often removes significant volumes of CO₂ — emissions that can now generate credits if permanently stored rather than vented under Verra’s new methodology.

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