Since CFTC published VCC Guidance on September 20, 2024, our team at Xalte is excited to have been part of several developments. Additionally, we remain optimistic about the industry’s increased momentum towards achieving global net-zero through innovative approaches to project financing and technical advancements.
Xalte was proud to host the initial Steering Committee of the Africa Green Industrialisation Initiative (AGII), led by President Ruto of Kenya. The AGII SteerCo event was held on the sidelines of the United Nations General Assembly (UNGA) in New York City on September 25, 2024 and focused on increasing collaboration and value-add contributions across Africa. Government representatives, industry leaders, and members of the investment community shared their perspectives on using global climate actions and the associated financing to drive economic transformation.
Xalte was a proud partner of the 16th International Green Accord Forum in Rome, Italy in October 2024. This event centered on how cultural and moral perspectives could provide the motivation for unity between countries, industry, and non-profits. The theme of “Building Future Together” aligned on common causes, including environmental stewardship whereby every person and every aspect of human activity is called upon to contribute towards net-zero objectives.
The 2024 Meetings took place from October 21 to October 26 in Washington, DC. The World Bank continues to be the largest multilateral funder of climate investments in developing countries. Recommendations captured in Climate Change Action Plan (2021-2025) include increasing climate financing, incentives for adaptation, and the alignment of financial flows to the Paris Agreement. Xalte is excited about progress regarding a new ratings system, instruments to track program delivery, and financial methods to address country-level debt.
The 29th United Nations Climate Change Conference was held November 11th to 22nd in Baku, Azerbaijan. At Xalte, we are optimistic for continued advancements in aligning carbon market definitions, capital market investment protections, and private capital interests. While COP29 concluded with an agreement calling on developed countries to deliver $300 billion per year to developing countries by 2035, the committed financing amount is not viewed as sufficient to achieve defined targets.
Xalte’s approach to enhancing the structure of the voluntary carbon markets through standardized definitions and procedures will increase investor confidence and stakeholder participation. Engaging beyond governmental organizations and affiliates, increasing transparency, and integrating with regulated financial markets would drive the capital necessary to address financial shortfalls and deliver desired industry results.
The environmental industry is poised to have a breakthrough year in 2025. Xalte believes policy reforms would inspire alignment throughout the international community and is optimistic about material advancements in program methodologies and technologies that could be the catalyst for lower-cost, scalable solutions. Xalte also believes private sector involvement will continue to expand, including banks and carbon credit consumers, to close the gap in financing required to achieve net-zero goals.
At Xalte, we are optimistic that the new Administration, under President Trump’s leadership, will continue to prioritize the environmental industry alongside other initiatives. While we are expecting changes with program methodologies, technologies, tax incentives, and industry engagement, we believe progress will continue to scale near-term credit generation and achieve long-term environmental objectives.
At Xalte, we believe that scientific and technical breakthroughs will shape the future of energy across the globe. As industry experts, supported by an international consortium, review existing methodologies to benchmark high-integrity standards for issued carbon credits, we believe scaling proven approaches and adopting new methodologies will propel market change.
Leveraging advancements in Carbon Capture & Storage (CCS) technologies and approaches will reduce CO2 release to the atmosphere. Transformative solutions have net-zero potential to address the heavy industry emissions from manufacturing and refining processes.
In addition, increasing emphasis on hydrogen and nuclear for growing energy generation and transmission demands may advance industry adoption of new methodologies. Harnessing hydrogen has become more sustainable, cost-effective, and cleaner and it could be used as a supply for industrial manufacturing and select transportation. Similarly, micro-nuclear capabilities are emerging and being proven as a safe and secure energy generation alternative.
Increased investor participation and refinement of regulatory guidelines continue to gain traction. Xalte is excited about the potential voluntary carbon markets will assume in shaping the future of the environmental industry – bridging the relationship between project financing and program delivery. Carbon removals are important to promote environmental balance across the ecosystem. Accelerating secure investments would increase high-integrity credit supply in the near-term and enable future growth requirements to achieve global net-zero.
