Voluntary carbon credit market: Iberdrola launches Carbon2Nature (C2N)

Iberdrola has created Carbon2Nature (C2N), a company dedicated to high-quality carbon credits from biodiversity and ecosystem restoration projects, to contribute to its goal of carbon neutrality by 2040. However, the effectiveness of nature-based carbon credits is questioned due to credibility problems in voluntary carbon markets.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Spanish energy company Iberdrola has ventured into the voluntary carbon market by launching Carbon2Nature (C2N), a new company focused on nature-based solutions, it said on August 14.

Carbon2Nature launches voluntary carbon credit initiatives focused on biodiversity and ecosystem restoration

C2N will offer high-quality carbon credits for in-house or collaborative projects that enhance biodiversity, conservation and nature restoration. The initiative aims to capture more than 61 million tonnes of CO2 by promoting projects that conserve and restore ecosystems on more than 100,000 hectares, including forests, coastal ecosystems and agricultural soils, according to the release.

The company will focus on countries where Iberdrola is active. 80% of C2N projects will be based in Latin American countries such as Brazil, Mexico, Colombia, Peru and Chile, while the remaining 20% will be located in the northern hemisphere, such as Spain, the UK and Portugal. Carbon2Nature is already developing projects in Brazil, Mexico, Colombia, Chile and Spain.

“We come to this new market with humility and a desire to do things differently, bringing all of Iberdrola’s experience in sustainable development to the world of nature-based solutions and carbon credit generation,” said Miguel Ángel García Tamargo, director of Carbon2Nature.

Iberdrola, which focuses on electricity utilities and renewable energies, aims to achieve zero net emissions by 2040.

Nature-based carbon credits: between growing popularity and credibility challenges in voluntary markets

This situation arises at a time when many countries and companies are investing in nature, forests, woodlands, etc. to boost financing for the fight against climate change and generate carbon offsets. Nature-based solutions that help remove carbon dioxide from the atmosphere and stop emissions from degraded natural sites and agricultural land have gained in popularity in recent years.

Voluntary carbon markets currently face credibility issues. The effectiveness of some carbon credits, particularly nature-based offsets, has recently come under criticism from the media and academics, who question whether the programs represent genuine carbon reductions.

This scrutiny has had a major impact on prices and demand for nature-based carbon offsets. Platts, part of S&P Global Commodity Insights, evaluates a wide range of high-quality voluntary carbon credits that finance projects demonstrating additionality, permanence, exclusivity and co-benefits. Platts’ CNC valuation – which reflects the most competitive prices for nature-based carbon credits – reached $2.60/MtCO2e on August 11, up from the record level of $1/MtCO2e reached on May 29. S&P Global data show that the average Platts CNC price in 2022 is $9.55/MtC02e.

Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.
Eni sells nearly half of Eni CCUS Holding to GIP, consolidating a structure dedicated to carbon capture and storage projects across Europe.
Investors hold 28.9 million EUAs net long as of August 8, four-month record level. Prices stable around 71 euros despite divergent fundamentals.
The federal government is funding an Ottawa-based company’s project to design a CO2 capture unit adapted to cold climates and integrated into a shipping container.
Fluenta has completed the installation of its Bias-90 FlarePhase system at the Pelican Amine Treating Plant in Louisiana, marking progress in the measurement of flare gas flows with very high carbon dioxide concentrations.
Alberta carbon credits trade at 74% below federal price as inventory reaches three years of surplus, raising questions about regulatory equivalence before 2026 review.
The integration of carbon capture credits into the British trading system by 2029 raises questions about the price gap with allowances and limited supply capacity.
Carbon Ridge reaches a major milestone by deploying the first centrifugal carbon capture technology on a Scorpio Tankers oil tanker, alongside a new funding round exceeding $20mn.
Elimini and HOFOR join forces to transform the AMV4 unit at Amagerværket with a BECCS project, aiming for large-scale CO₂ capture and the creation of certified carbon credits. —
Carbonova receives $3.20mn from the Advanced Materials Challenge programme to launch the first commercial demonstration unit for carbon nanofibers in Calgary, accelerating industrial development in advanced materials.
Chestnut Carbon has secured a non-recourse loan of $210mn led by J.P. Morgan, marking a significant step for afforestation project financing and the growth of the U.S. voluntary carbon market.
TotalEnergies seals partnership with NativState to develop thirteen forestry management projects across 100,000 hectares, providing an economic alternative to intensive timber harvesting for hundreds of private landowners.
Drax’s generation site recorded a 16% rise in its emissions, consolidating its position as the UK’s main emitter, according to analysis published by think tank Ember.
Graphano Energy announces an initial mineral resource estimate for its Lac Saguay graphite properties in Québec, highlighting immediate development potential near major transport routes, supported by independent analyses.
Carbon2Nature, a subsidiary of Iberdrola, partners with law firm Uría Menéndez on a 90-hectare reforestation project in Sierra de Francia, targeting carbon footprint compensation for the legal sector.
North Sea Farmers has carried out the very first commercial-scale seaweed harvest in an offshore wind farm, supported by funding from the Amazon Right Now climate fund.
The UK's National Wealth Fund participates in a GBP 59.6 million funding round to finance a CO₂ capture pipeline for the cement and lime industry, targeting a final investment decision by 2028.
The Bayou Bend project, led by Chevron, Equinor, and TotalEnergies, aims to become a major hub for industrial carbon dioxide storage on the US Gulf Coast, with initial phases already completed.
US-based Chloris Geospatial has raised $8.5M from international investors to expand its satellite-based forest monitoring capabilities and strengthen its commercial position in Europe, addressing growing demand in the carbon market.
The federal government is funding three carbon capture, utilisation and storage initiatives in Alberta, strengthening national energy competitiveness and preparing infrastructure aligned with long-term emission-reduction goals.
Consent Preferences