April 2, 2025
North American Carbon World (NACW) is North America’s premier event on carbon markets. NACW 2025 gathered industry leaders and professionals to learn, collaborate, and network on carbon markets and climate policy. Below are five key insights our team took away from the event:
1. Global Climate Action is Rising — So Is the Focus on Affordability
In light of recent federal actions, state officials in California, NY, and Washington expressed a continued commitment to climate and sustainability policies, but with an increased consciousness on affordability. Sustainability efforts at the state level will need to be strategic, measured, and either conscious of affordability impacts or incorporate tools to mitigate any cost concerns, such as how proceeds are reinvested. An emphasis on affordability reflects a broader recognition that climate policies must balance environmental goals with economic realities to maintain public support and ensure equitable outcomes.
It is equally important that policymakers clearly communicate how they support affordability so the public can trust that these initiatives are working in their interest. Doing so calls for strong collaboration across governments, agencies, and community partners to ensure policies are designed to have a meaningful impact.
2. Cautious Optimism in NBS Amidst Challenges
While the policy environment and its impacts may mute market activity, the urgency of addressing climate change continues to drive the need for commitment and meaningful action. Despite challenges, Nature-Based Solutions (NBS) remain essential in tackling climate change, offering co-benefits like biodiversity protection and ecosystem restoration. The recognition of these solutions’ potential underscores the importance of maintaining focus and advancing efforts, even in a complex and evolving policy landscape.
3. Shifting Terminology & Messaging in Climate Discussions
The language surrounding climate and sustainability is evolving as organizations adapt to shifting stakeholder preferences. Terms like “ESG” and “climate” are being replaced with broader, less politicized concepts such as “sustainability” and “resilience.” This shift reflects a strategic effort to align messaging with audience values and expectations while staying focused on long-term goals. As terminology and messaging continue to evolve, clear communication will be key to ensuring stakeholders remain engaged, informed, and confident in the direction of climate-related efforts.
4. Misalignment in Perspectives on Standards & Frameworks
The voluntary carbon market is experiencing significant frustration over standards and frameworks, particularly with the Science-Based Targets initiative (SBTi) and carbon credit rating agencies. SBTi’s focus on removals-only approaches and delays in implementation have sparked discontent, especially among market veterans who view these hurdles as barriers to progress. This contrasts with some corporations, institutions, and NGOs that see SBTi as a credible framework for advancing climate action, highlighting a misalignment in perspectives.
Similarly, while striving to improve market integrity, carbon credit rating agencies often produce conflicting assessments of the same projects. These discrepancies create confusion rather than clarity, further complicating the market. Addressing these challenges will require better alignment between stakeholders and more consistent communication to restore trust and drive meaningful climate action.
5. Challenges in Defining Permanence & Flexibility for Carbon Removals
Continued challenges exist in defining the permanence or durability of carbon removals. Standards like SBTi require longer time horizons, which essentially rule out nature-based solutions (NBS) as long-term options. Other approaches, such as “like-for-like,” also limit flexibility and may have negative consequences for supply development. There is a need for a balanced approach, but guidance is lacking in this area.
About ClimeCo
ClimeCo is an award-winning leader in decarbonization, empowering global organizations with customized sustainability pathways. Our team of respected scientists and industry experts collaborates with companies, governments, and capital markets to develop tailored ESG and decarbonization solutions. Recognized for creating high-quality, impactful projects, ClimeCo is committed to helping clients achieve their goals, maximize environmental assets, and enhance their brand. Partner with ClimeCo to drive meaningful environmental change and take your climate initiatives to new heights.
Contact us at +1 484.415.0501, info@climeco.com, or through our website climeco.com.
