The global cryptocurrency market has surpassed $3 trillion, fueled by renewed investor optimism following Donald Trump’s re-election as U.S. President. Alongside this, Bitcoin has reached an all-time high at $93,434.

According to CoinMarketCap, the total market cap currently sits at $3 trillion, up 4% in the past day. CoinGecko reports an even higher figure of $3.15 trillion, tracking over 15,000 cryptocurrencies, compared to CoinMarketCap’s 10,000.

The $3T Surge: What’s Driving the Crypto Boom?

This milestone marks an all-time high, surpassing the 2021 bull run. The surge, dubbed the ‘Trump Bump,’ reflects expectations of a pro-crypto regulatory environment under the new administration. 

Trump’s campaign promises, including making the U.S. a global crypto hub and establishing a national Bitcoin reserve, have strengthened market confidence.

Institutional appetite for digital assets continues to grow. A recent survey of 400 global institutional investors revealed that 57% plan to increase their crypto allocations, with many aiming to do so within the next 6 months. 

Companies like MicroStrategy have also made significant investments, recently acquiring $2 billion in Bitcoin.

Analysts predict further growth but caution against potential corrections, citing external risks like weak U.S. economic data.

Bitcoin’s Record-Breaking Rally: Is $100K Next?

Bitcoin has been a key driver of this crypto rally, hitting a new all-time high (ATH) of $93,434 on November 13. Its market cap now stands at almost $1.8 trillion, comprising 60% of the total crypto market. 

Altcoins are also experiencing significant gains, contributing to the broader market’s upward momentum.

Maksym Sakharov, CEO of DeFi platform WeFi, attributes the surge to “Bitcoin’s price rally above $93,000, growing demand, and regulatory clarity.” Bitcoin has more than doubled in 2024, fueled by the launch of spot Bitcoin ETFs and increased institutional interest.

Many crypto analysts suggest Bitcoin’s rally is far from over. Some predict it could hit $100,000 in the coming months. 

Galaxy Digital CEO Mike Novogratz offers an even bolder outlook, forecasting a potential surge to $500,000—if Bitcoin gains traction as a national reserve asset in the U.S. 

Bitcoin Surpasses Silver, Becomes World’s 8th Largest Asset

Even more remarkable, Bitcoin has reached a new milestone. It surpassed silver with a market cap of $1.8 trillion, positioning itself as the world’s 8th largest asset. This marks a significant leap in Bitcoin’s trajectory, as it now trails only major players like gold, Apple, and Microsoft, according to Companies Market Cap.

The surge comes as Bitcoin’s price hit over $93,000, with even more bullish projections ahead. In contrast, silver fell by 2%, helping Bitcoin secure its spot ahead of the precious metal.

Institutional Momentum Drives Bitcoin’s Rise

Institutional activity played a crucial role in today’s rally. BlackRock’s iShares Bitcoin Trust (IBIT) recorded $4.5 billion in trading volume, reflecting the growing interest in Bitcoin from major financial players. 

Bloomberg’s Eric Balchunas highlighted this trend, noting that Bitcoin ETFs and related assets, including MicroStrategy and Coinbase, reached a combined trading volume of $38 billion.

Optimism in the crypto market has surged following Donald Trump’s re-election, with analysts suggesting his pro-crypto stance could pave the way for favorable regulations. This sentiment has fueled predictions that Bitcoin could surpass the $100,000 mark by the end of 2024.

However, behind all this hype with the crypto industry, particularly Bitcoin’s sudden surge, lurks the digital asset’s environmental impact. 

• RELATED: Ethereum’s Stealth Move to Wipe Out Its Carbon Footprint

Crypto’s Environmental Toll: Balancing Growth and Sustainability

The rising energy consumption of crypto mining has sparked global concern due to its environmental impact. The White House’s 2022 report highlighted the substantial electricity demands of cryptocurrency mining, which now rival the energy consumption of countries like Poland. 

In an analysis by the International Monetary Fund (IMF), crypto mining and data centers made up 2% of global electricity demand in 2022. This figure could rise to 3.5% within three years, matching Japan’s current electricity usage—the fifth highest in the world—according to projections from the International Energy Agency.

• Bitcoin’s proof-of-work (PoW) consensus mechanism is a primary contributor, with global electricity use for PoW estimated between 97 and 323 terawatt-hours annually. This translates to significant greenhouse gas emissions, with Bitcoin alone responsible for around 88 million metric tons of CO₂ each year.

The U.S. accounts for nearly 46% of Bitcoin mining emissions, releasing about 15.1 million metric tons of CO₂ annually. Other major contributors include China and Kazakhstan, emphasizing the global nature of the issue. 

The mining process also has indirect environmental impacts, such as electronic waste and water usage, with one Bitcoin transaction consuming thousands of gallons of water.

Efforts to reduce Bitcoin’s carbon footprint include transitioning to less energy-intensive consensus mechanisms like proof-of-stake (PoS) and adopting renewable energy sources for mining.

However, regional emission reduction efforts often fall short due to the global supply chain’s carbon intensity. For instance, even countries with cleaner energy grids, like Norway, face indirect emissions from imported mining equipment manufactured in coal-reliant regions like China.

Interestingly, recent studies challenge the perception of Bitcoin mining’s environmental impact. 

Bitcoin Mining’s Role in Carbon Reduction

Research from the Bitcoin Policy Institute (BPI) highlights how mining increasingly relies on renewable energy, turning surplus energy into a valuable resource. By using excess power from renewable sources like wind and solar, mining helps stabilize grids and reduce energy waste, proving that it can contribute to carbon reduction rather than exacerbating emissions.

The researchers also compared the energy use of Bitcoin mining, data centers, and AI server energy in the U.S. in 2023. Bitcoin used 48 TWh in 2023, while AI servers consumed between 20 and 125 TWh. On the other hand, data centers have the biggest power consumption, ranging from 100 to 325 TWh. 

The following chart shows the historical results and forecasts up to 2027. 

Another report from the Digital Assets Research Institute (DA-RI) reveals flaws in past research on Bitcoin’s energy use. It critiques outdated models that overlooked miners’ shift to renewable energy, resulting in sensational headlines and misinformed policies.

The new findings urge regulators to base decisions on empirical data, underscoring Bitcoin’s potential to align with global carbon reduction goals.

These studies suggest that sustainable Bitcoin mining could play a crucial role in green initiatives. By leveraging clean energy, mining could evolve into a climate-friendly industry, offering both economic and environmental benefits. As this perspective gains traction, policymakers may adopt more balanced regulations, supporting sustainable growth in the crypto sector.

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Laconic Infrastructure Partners Inc. (Laconic), a Public Benefit Corporation (PBC) founded in 2021 and headquartered in Chicago has announced a new mandate from the Plurinational State of Bolivia. The agreement authorizes Laconic to deploy its unique SADAR Natural Capital Monetization (NCM) platform to facilitate technology transfer and bolster Bolivia’s capacity-building efforts.

Notably, Bolivia could generate up to $5 billion, funding sustainability projects that align with global climate goals from this groundbreaking model.

Marcelo Montenegro Gomez Garcia, Minister of Economy & Public Finance of Bolivia emphasized, 

“The Plurinational State of Bolivia is committed to completely ending deforestation within our territorial borders by 2030. By working with Laconic, we have been able, for the first time, to generate sufficient development financing to enable our country to make this commitment a reality and enhancing our ambition under the Paris Agreement. This benefits not only our own citizens, but all of mankind, as we collectively strive to meet NetZero 2050.”

Empowering Bolivia’s Carbon Market with Laconic’s Innovative Technology

Laconic offers advanced environmental intelligence and data management solutions. They empower governments, corporations, and financial institutions to engage openly and fairly in the carbon market.

Image: Energy and Emissions Bolivia 2022

Source: IRENA

The SADAR NCM platform

The company’s one-of-its-kind SADAR NCM platform will help Bolivia secure funding for its enhanced NDC goals. The AI-powered platform delivers an essential, unchangeable data store and a structured information exchange that carbon markets need to operate effectively.

Explaining further SADAR’s carbon securitization technology can transform Bolivia’s environmental assets into financial capital.

This platform will function in the following ways:

• Aggregate and analyze large-scale data streams from Bolivia’s extensive natural resources. Laconic’s platform can monetize both current and future carbon stocks.
• Potentially generate up to $5 billion for Bolivia, thereby creating a robust funding stream for sustainability projects that align with global climate commitments.

Bolivia’s collaboration with Laconic comes at a critical moment for the global carbon market. Through Laconic’s SADAR platform, Bolivia can ensure its compliance with the Paris Agreement as well as with local and regional regulations. This is how the government can focus on expanding its NDC ambitions and global decarbonization efforts.

Laconic signed a new Memorandum of Understanding (MOU) with the State of Espirito Santo, Brazil last month. This agreement will also incorporate Laconic’s SADAR Platform and Natural Capital Monetization (NCM) services and explore how they can support the state in creating a digital platform to help meet Brazil’s climate goals.

The company revealed that for the first time, all carbon market participants have timely access to the right information, ensuring liquidity and compliance for large-scale trading in global financial markets.

• READ MORE: Xpansiv and Puro.earth Partner to Scale Carbon Removal Credits Market

Check out Lanconic’s CEO Andrew Gilmour’s take on how AI and financial innovation can save the planet

Sovereign Carbon: The Carbon Financing Mechanism

The platform will manage Bolivia’s carbon assets as a “Sovereign Carbon” product. Creation of a Sovereign Carbon product is the only scalable way to mobilize the $1 trillion in annual carbon trading, required to meet collective net zero goals.

This capability provides governments with an efficient mechanism to monetize natural capital on a global scale. Subsequently enabling institutional investors to purchase bona fide securities backed by carbon assets.

CEO Andrew Gilmour remarked, 

“Laconic is honored to be working with the Plurinational State of Bolivia to champion the innovative Sovereign Carbon market. This transaction demonstrates the power of technology to drive change in emerging markets finance, as, for the first time, we are able to collectively harness market forces to generate more economic growth from the preservation of natural capital assets than from the exploitation of them. Put simply – our technology has made it possible to make more money preserving your forests than you can by cutting them down.”

This initiative not only strengthens Bolivia’s role in the global carbon market but also sets a promising precedent for Article 6-compliant carbon financing, supporting global climate goals through innovative financial solutions.

Source: Laconic and the Plurinational State of Bolivia announce landmark 5 Billion USD Sovereign Carbon Transaction

• FURTHER READING: Google to Buy 50,000 MTs of Nature-Based Carbon Credits from Brazil Startup Mombak 

The post Laconic and the Plurinational State of Bolivia Set New Benchmark with USD$5 Billion Sovereign Carbon Deal appeared first on Carbon Credits.

Singapore’s National Climate Change Secretariat (NCCS) is working with two major carbon credit programs, Gold Standard and Verra’s Verified Carbon Standard (VCS). Their goal is to create a new protocol that will help countries meet their climate targets under Article 6.2 of the Paris Agreement. The newly formed Article 6.2 Crediting Protocol will simplify global efforts to cut emissions and promote sustainable growth.

Over the past year, NCCS, Gold Standard, and Verra have worked closely with governments and climate experts to shape initial recommendations. They plan to finalize the Protocol after COP29 and begin implementation in 2025, giving countries a practical tool to reach their climate goals through strong international cooperation.

Benedict Chia, Director-General (Climate Change), NCCS, Singapore, said,

“It is important to have a protocol that facilitates Article 6.2 cooperation between independent crediting programs and governments. This would ensure that Article 6.2 can operate efficiently.”

Article 6.2: A Pathway to Global Climate Cooperation

Broadly speaking, Article 6.2 of the Paris Agreement helps countries achieve their Nationally Determined Contributions (NDCs) and advance sustainable development. It further leverages governments and private sectors to work together through carbon credit markets to reach their climate goals.

With established carbon crediting programs provided by Gold Standard and Verra, governments can certify emission reductions and removals without creating new standards from scratch. This reduces complexity and ensures quantified results.

Subsequently, this collaboration will also serve a similar purpose in reducing climate efforts and allowing countries to focus on impactful actions.

Margaret Kim, CEO of Gold Standard, expressed her opinion in the following statement,

“If a market is to be trusted, it must be built on solid foundations. For Article 6 to be reliable and efficient, governments and standards need to work together. These initial recommendations outline how, by doing so, they can deliver impact for both the climate and sustainable development.”

Mandy Rambharos, CEO of Verra noted, 

“Independent crediting programs offer comprehensive standards and verification mechanisms that are primed and ready for use by governments in their cooperation under Article 6. The positive reactions we are already receiving from government stakeholders demonstrate how independent standards, that have grown up in the voluntary carbon market, have built a robust and credible foundation that can seamlessly integrate into the infrastructure of compliance markets and Article 6. Together, we can enable these new markets to be operational and effective much more quickly than otherwise possible.”

Collaborative Efforts to Shape Initial Recommendations

The NCCS, Gold Standard, and Verra officially announced their partnership at COP28 in December 2023 with a shared ambition, as described above. They have been working with governments and climate experts to develop the initial recommendations for this protocol.

Without this unified approach, countries might take the risk of inconsistent paths, which could slow down or complicate international cooperation under Article 6.2.

The initial recommendations or insights will outline key ideas and steps that will shape the Protocol. However, they expect to release the final version only after COP29, containing the outcomes of the summit.

Furthermore, the three organizations will continue to engage and seek feedback from stakeholders when developing the final Protocol. This is to ensure that it can serve as a “practical enabler” and complement Article 6.2 rules that are adopted within the United Nations Framework Convention on Climate Change (UNFCCC).

Additionally, the report calls on governments to take steps to limit regulatory and market risk associated with Article 6.2 transactions. For example, by adopting tools like robust templates for Letters of Authorization.

The final protocol will be ready for implementation in 2025.

• SEE MORE: Singapore Sets Higher Standards for International Carbon Credits

Key Components and Timelines for the Article 6.2 Playbook

Image: Snapshot of Article 6.2 Crediting Protocol 2024

Source: Verra

COP29 Milestone – November 2024

At COP29, stakeholders will introduce the initial recommendations for the Article 6.2 Crediting Protocol. These guidelines will offer insights on how to harmonize Article 6.2’s implementation across Independent Carbon Programs (ICPs). The focus will be on providing clear guidance for countries, ICPs, and other involved entities to ensure streamlined and effective climate action.

Starting 2025 – Protocol Development and Implementation

From 2025 onward, the development of the full Article 6.2 Crediting Protocol will begin. This will include a specialized data protocol aimed at standardizing how ICPs report to countries. These protocols may also include recommendations for additional reporting to guarantee the full traceability of credit transactions, linking them to corresponding adjustments where required, based on outcomes from COP29.

Ongoing Engagement and Outreach

Regular communication and collaboration with countries, ICPs, and other stakeholders will continue. The goal is to build awareness, secure support, and deepen understanding of the Article 6.2 Crediting Protocol’s implementation, ensuring widespread engagement and effective adoption.

Carbon Credits vs. ITMOs: Clear Lines for Effective Climate Reporting

The Protocol establishes a clear distinction between two elements: carbon credits and Internationally Transferred Mitigation Outcomes (ITMOs). Carbon credits represent the direct mitigation results achieved by projects and are recorded on Independent Carbon Program (ICP) registries.

In contrast, ITMOs reflect the accounting implications of these credits under Article 6.2 which are tracked on national registries. This approach allows private investors to engage in credit transactions. At the same time, it ensures governments track these transactions in their Article 6.2 reports and helps countries meet their Nationally Determined Contributions (NDCs).

We have read in our previous article about COP29 making a breakthrough in global climate action during its opening day. Nearly 200 governments agreed on a framework under Article 6.4 of the Paris Agreement, backed by the UN to create a stronger demand for carbon credits, especially to fund climate projects in developing nations.

For this case, let’s wait and watch how Article 6.2 unfolds at COP29 to meet the unified goal of Singapore’s National Climate Change Secretariat (NCCS), Gold Standard, and Verra.

Source: Singapore, Gold Standard and Verra Release Initial Recommendations Outlining Progress in the Development of a Carbon Crediting Protocol to Implement Article 6.2 – Verra

• FURTHER READING: Bank Of America Flags Liquidity Challenges in Carbon Markets: Will COP29 Usher in a New Era of Climate Finance? 

The post Article 6.2 at COP29: Singapore Partners with Gold Standard and Verra to Advance Climate Action appeared first on Carbon Credits.

GenZero, a decarbonization-focused investment platform owned by Temasek, and global commodities trader Trafigura have committed over $100 million to Brújula Verde, Colombia’s largest nature-based carbon removal project. Located in the Orinoco River Basin, this project aims to restore land degraded by agriculture and wildfires while generating high-integrity carbon removal credits.

Bringing Degraded Lands Back to Life

The planet is losing about 10 million hectares of forest worldwide every single year. The primary reason is to clear land for agriculture and materials like paper. This deforestation, largely concentrated in tropical forests (96%), contributes to 16% of total tree cover loss. 

Notably, deforestation releases nearly 5 billion tons of carbon dioxide annually, accounting for about 10% of global human-made emissions. This is why most nature-based projects are focusing on restoring degraded forests.

In Colombia, 79,256 hectares were deforested in 2023. The South American nation is covered by over 60 million hectares of forests, with 405,000 hectares of planted forests.

The Brújula Verde project focuses on afforestation and reforestation across 30,000 hectares of degraded land, particularly areas previously used for cattle grazing. The initiative will plant 24 million mixed-species trees, with no plans for commercial harvesting. 

• By restoring the land, the project could sequester over 20 million tonnes of carbon throughout its lifetime.

The project uses advanced technologies such as high-resolution sensors for accurate carbon monitoring and eDNA sampling to track biodiversity. It also assesses the health of local ecosystems, including their biodiversity, water systems, and social impacts.

Expanding the Project’s Scope

Trafigura initially invested in Brújula Verde in 2023, funding the first phase, which reforested 10,000 hectares. This latest investment, supported by GenZero, will double the project’s size and help it issue its first carbon credits by 2025.

Matthew Nelson, Head of Carbon Investments at Trafigura, highlighted the project’s potential to attract institutional investors and deliver environmental and social benefits. He stated that:

“GenZero’s partnership will enhance the scope and impact of Brújula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, whilst producing high integrity nature-based carbon removal credits.”

• RELATED: Top Countries for Carbon Credit Investments in 2024: Colombia Ranks 1st

Trafigura Sustainability and Climate Initiatives

Trafigura is a leading global commodity trading firm, specializing in the trading of oil, refined products, metals, and minerals. The company plays a vital role in connecting producers with consumers through efficient supply chains. In 2023, Trafigura reported revenues exceeding $315 billion, underscoring its significance in global markets.

The global commodity trading giant is actively pursuing ambitious carbon reduction initiatives, aiming to align with global net-zero targets. It targets a 50% reduction in Scope 1 and 2 emissions by 2032 and operational carbon neutrality by 2050.

The company’s emissions reduction strategy also includes reducing its Scope 3 emissions intensity. These targets are complemented by investments in renewable energy projects, such as solar and wind. The company also invests in the development of low-carbon fuels, including green hydrogen and ammonia.

In 2023, Trafigura launched a $2 billion fund to support its energy transition projects. The company is also advancing its emissions trading activities, helping clients offset their carbon footprints by sourcing high-quality carbon credits. Trafigura’s climate action plan underscores its commitment to decarbonizing its supply chain and supporting global sustainability goals​.

The $100 million investment in Colombia’s Brújula Verde project for nature-based carbon removals​ is the company’s most recent initiative. 

Building High-Quality Carbon Markets

The project aims to contribute to the development of robust carbon markets by delivering high-quality, verifiable carbon removal credits. According to Hoon Ling Min, Director of Investments at GenZero, the project’s focus on soil restoration and native species reintegration ensures the production of top-tier carbon credits. He further noted that:

“The Brújula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project which adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually.”

GenZero, a wholly-owned subsidiary of Temasek, is committed to accelerating global decarbonization. The platform invests across three key areas:

• technology-based solutions,
• nature-based projects, and
• carbon ecosystem enablers.

GenZero has already deployed capital in impactful initiatives, including investments in Carbon Capture, Utilization, and Storage (CCUS) and nature-based solutions like sustainable forestry.

The company’s key achievements include reducing carbon emissions through clean cookstove projects in Southeast Asia and supporting the New Forests Tropical Asia Forest Fund 2. Together, these efforts contribute to advancing decarbonization by 2030, aligning with global net-zero goals. 

The Brújula Verde project represents a significant step toward addressing climate change by restoring ecosystems and generating carbon credits. With GenZero and Trafigura’s combined investment, the project will deliver environmental, social, and economic benefits to the Orinoco River Basin while advancing the global carbon market.

• READ MORE: COP29 Breakthrough: UN-Backed Global Carbon Market Takes Shape

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