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May 2025
Hello ,
Welcome to the May edition of Abatable's Carbon Compass newsletter. This email is informed by our weekly in-depth analysis of the VCM. If you would like to receive this in your inbox, sign up to our intelligence platform.
This month: We explore notable developments in the use of carbon credits both within and beyond company value chains. First, on offsetting, we start by outlining the Environmental Defence Fund's backing of Apple's carbon-neutral claim for its Apple Watches. The move – the first time an environmental NGO has defended a company’s offset strategy in court – accompanies a shift in thinking around offsetting's role in corporate climate strategies, and represents an evolution in environmental advocacy.
Second, on insetting, our perspective section unpacks the significance of Conservation International's Principles for High-Integrity Insetting in the Land Sector – a new and needed roadmap for scaling nature-based solutions within agricultural and forestry value chains.
Elsewhere, our chart of the month highlights the latest Abatable analysis on the new floor price for REDD+ and cookstove carbon credits under the latest high-integrity methodologies. Integrity comes with a cost, and we've quantified it.
Finally, check out the Abatable news section for details of our new, practical white paper on how companies should approach setting an internal carbon price.
We hope you enjoy the newsletter, see you next month!
Are Apple Watches carbon neutral? The EDF says yes
In a landmark move, the Environmental Defence Fund (EDF) is legally backing Apple’s carbon-neutral claim for its Apple Watch Series 9, marking the first time an environmental NGO has defended a company’s offset strategy in court.
At a time of legal risks and unclear standards deterring businesses from buying carbon credits, this could signal a turning point.
Earlier this year, Apple faced a class action lawsuit in California challenging the integrity of its ‘carbon neutral’ Apple Watch marketing. Similar lawsuits have hit Delta, Evian and others, reflecting legal uncertainty and unclear guidance on carbon credits from legislators and standard setters like SBTi.
But 2025 may bring more clarity. EDF’s intervention could reshape how courts and the public evaluate the corporate use of carbon credits. EDF’s defence is grounded in four key arguments:
Recognising leadership: Apple cut direct Apple Watch emissions by 75-81% before using offsets, a level of ambition EDF says should be supported, not punished. With only 850 of the world's top 2,000 companies committed to net zero, Apple's 60% reduction by 2024 stands out.
Backing trusted standards: Apple relied on Verra-certified projects with third-party validation and science-based methods – the kind of rigorous approach the market needs to stay credible.
Enabling action: Overly strict liability standards would create uncertainty in carbon offset investments and ultimately harm environmental goals. The market needs reasonable standards that encourage participation while maintaining integrity.
Forward-looking evaluation: Claims should be judged based on what companies knew at the time, not in hindsight, recognising the evolving science of climate and carbon.
A shift in climate advocacy
EDF's intervention signals an evolution in environmental advocacy. Offsetting has been, at times, considered a substitute for credible climate action and emission reductions. However, major climate organisations increasingly view carbon credit purchases as a legitimate and impactful complement to direct emission reduction activities.
The SBTi is also considering recognising the role of carbon credits in offsetting annual emissions while companies work toward net zero.
For businesses navigating carbon markets, both developments represent an important step toward establishing more straightforward guidelines that balance ambition with practicality.
Meanwhile, over the other side of the Atlantic, the EU's stance on carbon offsets under the Green Claims Directive is evolving, with recent EU trilogue discussions reportedly reveal that a more balanced position is emerging.
New Abatable analysis on the cost of integrity finds that the minimum floor price for REDD+ carbon credits under new, higher-integrity methodologies is at least $15.
The findings, represented in the chart above, are part of two analyses Abatable undertook assessing the minimum viable price for REDD+ and cookstove carbon credits shifting to newer high-integrity methodologies and monitoring procedures.
The analyses find that: - High-quality REDD+ credits need to have minimum prices of $15–35 per tonne to remain viable under methodologies like Verra’s VM0048. - High-integrity cookstove credits under new methodologies range from $15–39 per tonne, especially where rigorous monitoring and advanced stove technologies are used. - In both cases, modelled credit issuances are significantly lower under new methodologies, but climate and social impacts are higher. - Current market spot prices do not reflect the cost of transitioning to higher-integrity frameworks to deliver credible, measurable climate outcomes.
Conservation International's new insetting principles are more than just another framework
By Holly Nicholson, Abatable Policy Associate
Conservation International has released its Principles for High-Integrity Insetting in the Land Sector, marking a significant milestone for guidance around the practice of insetting. Backed by over 40 organisations, including Abatable, the principles outline not just another framework, but a roadmap for scaling nature-based solutions within agricultural and forestry value chains.
Building on Abatable's foundation
This new mapping tool builds on the definition and research Abatable co-developed with the International Platform for Insetting (IPI) in November 2023. Abatable and IPI’s definition of high-integrity insetting – interventions within a company's value chain that reduce emissions while creating positive impacts for nature and livelihoods – has become the industry standard, adopted by WWF and the UK Government's Department for Energy Security and Net Zero, among others.
Abatable and IPI’s work identified clear roadblocks for insetting: unclear definitions, complex accounting rules, and insufficient incentives for landscape-scale action. It also highlighted opportunities, including gaining competitive advantage, regulatory preparedness, and supply chain resilience, which forward-looking companies can capitalise on.
Six principles that matter
In partnership with Abatable, IPI and others, Conservation International has translated these insights into six clear, actionable principles across three core themes:
FLAG sector transformation
Prioritise climate impact – Use greenhouse gas accounting as a tool to drive real impact for the Forest, Land and Agriculture (FLAG) sector, focusing on interventions with the largest climate benefit.
Collaborate in supply sheds and landscapes – Enable collective action across overlapping supply chains to amplify impact and reduce costs.
Just and nature-positive transition
Create shared value – Co-design projects with producers and communities to ensure fair benefits.
Make credible claims – Use practical, rigorous accounting to incentivise impactful investment.
Streamline MRV – Minimise resource burden while ensuring robust claims and meeting producer needs.
Why this framework matters
What makes these principles stand out? They distinguish between ‘standard’ insetting, which is more narrowly focused on traceable supply chains and individual claims, and high-integrity insetting, which expands to include bio-physical, ecological, and socio-economic connections to value chains.
High-integrity insetting mandates a consideration of impacts on people and nature. It requires collaborative approaches across shared sourcing landscapes. It also recognises supply chain resilience and adaptation benefits that extend far beyond carbon accounting.
The principles confirm what Abatable has championed: to tackle climate and nature loss effectively, companies need holistic, scalable, and systems-based solutions that interconnect climate, nature and social challenges simultaneously.
Read the full take in our weekly carbon market update.
Abatable launches new practical guide to internal carbon pricing
Abatable has published a new white paper on internal carbon pricing and how it can be used as a strategic tool for companies to integrate climate considerations into core business decisions.
Designed as a practical guide to internal carbon price implementation, the white paper, authored by Abatable's Global Commercial Director Nick Daniel, explores how leading companies are using ICPs to cut emissions across operations, create internal carbon funds, finance climate solutions beyond their value chain and invest in carbon reduction and removals solutions.
Abatable is also proud to be sponsoring this year’s conference, which brings together climate leaders, innovators, and changemakers to accelerate high-integrity action for people and nature.
Across the Atlantic, the team will also be attending the International Civil Aviation Organization's 2025 Aviation Climate Week in Montréal over 2 and 4 June – find out more details.
Finally, you can read our Head of Carbon Solutions – APAC Bryan McCann's reflections on Ecosperity Week 2025, held this month in Singapore, here.
The Abatable Carbon Compass Newsletter provides a snapshot of Abatable's carbon market intelligence offering. To access more of our insights and receive regular market updates, sign up for a free account in our intelligence platform.
About Abatable
Abatable is on a mission to enable all organisations to build a thriving future for climate, nature and people. We do this by developing the tools organisations need to confidently navigate carbon markets and find the right partners, understand market risk and amplify their planetary impact. Our solutions are enabled by technology, and powered by people, making us a trusted guide for organisations looking to take action within the complex and evolving carbon markets. Find out more at abatable.com.
Legal
This email briefing has been prepared for general informational purposes only and is not intended to be relied upon as financial, accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.
