Countries agreed plans to “transition away” from fossil fuels and report on how an “informal” approach got nations working together.
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DeBriefed 1 May 2026: Countries chart path away from fossil fuels | China’s clean-tech surge | Global forest loss slows - Carbon Brief
Abatify Summary
Nature & Climate Perspective
**A deceleration in global forest loss significantly strengthens the permanence and additionality metrics required for nature-based credits to meet ICVCM Core Carbon Principles. **
- Reduced deforestation rates stabilize LULUCF (Land Use, Land-Use Change, and Forestry) accounting, providing a more predictable baseline for carbon sequestration projects.
- Slower forest loss facilitates the recovery of local biodiversity corridors, which directly impacts the high-integrity 'Co-benefit' premium in the voluntary carbon market.
- Long-term environmental stability is enhanced by preserving existing carbon stocks, reducing the 'reversal risk' that currently plagues many REDD+ initiatives.
Market & Policy Outlook
**The dual forces of fossil fuel phase-outs and China’s clean-tech scaling are rapidly reconfiguring global energy markets and the valuation of I-RECs and ITMOs. **
- National policies charting paths away from fossil fuels are expected to increase the demand for Article 6.2 ITMOs as countries seek to meet updated Nationally Determined Contributions (NDCs).
- China's surge in clean technology production exerts downward pressure on the marginal cost of abatement, affecting the financial liquidity of technical carbon removal projects.
- Corporate compliance with SBTi (Science Based Targets initiative) is becoming more feasible as the supply of verifiable renewable energy assets increases, potentially shifting focus from offsetting to direct Scope 3 reductions.
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