From emerging climate-related disclosures to milestone achievements for global carbon markets under Article 6 at COP29, significant progress has been made around corporate decarbonisation, global climate action and the carbon market as the world moves towards a net zero future.
This blog explores the pivotal changes and key achievements in 2024, and what to look out for in 2025.
As a leading carbon asset developer and climate consultancy, South Pole has been carefully preparing for the next phase of climate action by welcoming new leadership with strong transformational expertise in regulated markets and sustainability, and launching innovative solutions to tackle the climate crisis.
Dr Daniel Klier appointed as CEO from May 1st 2024
South Pole appoints Leila Kamdem as Chief Risk Officer in November 2024
In early 2024, South Pole established a dedicated Chief Risk Officer position to lead our efforts in exceeding industry standards for risk, integrity and compliance. This process involved the creation of an independent risk function, following the practices of regulated industries, such as banking. South Pole recently announced the appointment of Leila Kamdem as the new Chief Risk Officer as of January 2025.
We have implemented a tightened quality and risk review process for all of our carbon projects, alongside mandatory compliance procedures and training for our experts.
Read more about these efforts and our commitment to ethical practice and transparency on our corporate integrity page.
In 2024, we launched several significant technological and strategic initiatives to future-proof our portfolio and establish platforms to accelerate climate action and impact:
South Pole expands market-leading advisory services with the launch of Luumo
The past year saw several noteworthy moments in the continued drive for corporate decarbonisation, including a discussion paper from SBTi on addressing value chain emissions, rapidly evolving climate disclosure frameworks, and the growing importance of climate transition plans.
Earlier this year, the Science Based Targets initiative (SBTi) released a discussion paper on enhancing the approach to scope 3 emissions targets. This paper discusses several potential improvements, such as supplementing impact-based metrics, alternative target boundary approaches, and considering the degree of influence that companies have over value chain partners. The papers also consider five potential scenarios where environmental attribute certificates (EACs) could be integrated into corporate decarbonisation strategies, including using commodity certificates from value chain activities and sources with low traceability, as well as carbon credits for neutralising residual emissions and supporting beyond value chain mitigation.
The SBTi is expected to release more reports as it continues its process of revising the Corporate Net-Zero Standard. The official version is expected to be finalised in 2025.
Governments worldwide are enacting regulations to promote sustainable business practices and mitigate climate risk. These regulations require environmental, social, and governance (ESG) reporting and climate-related disclosures aligned with frameworks like TCFD reporting, ISSB, CDP disclosure, and TPT.
In 2024, frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) gained momentum, requiring companies to assess and report on their impacts and dependencies on natural ecosystems. This complements existing climate-related financial frameworks, urging businesses to adopt a holistic approach to environmental responsibility.
Regional frameworks progressed with California's Senate Bill 219 (SB 219) and the EU's CSRD:
California's climate disclosure legislation, Senate Bill 219 (SB 219), was signed into law in September 2024. This Climate Accountability Package includes the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act, mandating comprehensive GHG emissions and climate risk disclosures as soon as 2026 for some businesses. This regulatory framework enforces stringent reporting and assurance standards, underlining California's commitment to transparency in corporate environmental impacts. Read more about this legislation in our blog.
The EU's CSRD mandates ESG disclosures for large companies, phased in from 2024 to 2028, aligning with TCFD pillars and ISSB standards. This directive expands the scope of traditional financial reporting, compelling companies to collect and report comprehensive sustainability data. The CSRD now mandates that companies report on their climate impacts, risks, and decarbonisation strategies in a clear, standardised manner. It emphasises transparency and accountability, ensuring businesses integrate climate resilience into their long-term strategies. Businesses already included in the Non-Financial Reporting Directive (NFRD) are due to start reporting in 2024 meaning they must issue their FY24 report in the 2025 calendar year. Read our quick guide on the CSRD for more on who needs to report what and when.
The latest regulatory updates and guidance from voluntary corporate reporting initiatives have reinforced the importance of corporate climate transition plans (CTPs). However, a climate transition plan (CTP) is not just a compliance exercise; it is a strategic opportunity for businesses to build resilience, innovate, and create long-term value.
It outlines a company’s strategy to achieve its climate goals, with a strong focus on concrete actions to cut greenhouse gas emissions. Stakeholders expect a well-defined, actionable plan that explains how the business model will evolve, key decarbonisation strategies, financial investments required, and governance frameworks needed for successful execution.
Annual climate reporting has shifted from optional to mandatory for many companies, particularly under the CSRD, which requires clear and standardised reporting. CTPs are vital for ensuring compliance, avoiding penalties, and maintaining investor confidence.
It was a big year for markets with the finalisation of the Paris Agreement carbon market rulebook, new carbon standards approved for use under the voluntary emission reduction scheme for aviation, and a leap forward in new initiatives to support biodiversity and nature.
The main outcome of this year's flagship climate COP29 summit is a new climate finance deal. Wealthy nations will take the lead in providing at least $300 billion to developing countries per year by 2035, up from the current $100 billion. This is a tripling of climate finance, but far from the $1.3 trillion experts put forth as the amount necessary.
COP29 also marked a historic moment for carbon markets with the finalisation of the Rulebook for Article 6 of the Paris Agreement. This endorsement by the UN firmly establishes carbon markets as a pivotal mechanism to meet the Paris goals. The highlight was the creation of the Paris Agreement Crediting Mechanism (PACM), a new UN-approved benchmark for quality in the carbon market.
Read more in our blog about the highlights of COP29.
COP29 Highlights: shaping the future of carbon markets
The market has proven essential for scaling finance and fast-tracking climate solutions. Effective carbon markets serve as catalysts for investments in cutting-edge technologies and nature-based solutions, creating pathways to compliance markets and encouraging higher ambition across sectors.
Despite the complexities of a burgeoning market, the voluntary carbon market remained resilient in 2024 with new developments in technology and overall market integrity, and with the number of businesses retiring carbon credits steadily increasing. Alongside efforts by other organisations, South Pole's focus on championing risk and quality management has helped reinforce further transparency in the market, which is instrumental in shaping the next phase of its growth.
Read more in our carbon market 2025 outlook blog
Developed by the International Civil Aviation Organization (ICAO), the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a United Nations initiative to limit CO2 emissions growth in the international aviation sector. Airlines can comply with CORSIA by using CORSIA-eligible fuels or credits.
2024 saw a major milestone for the scheme, with the ICAO granting full approval to carbon standards for the first phase of the scheme, which include the Gold Standard, Verra, Climate Action Reserve, and Global Carbon Council.
Why does this matter? Previously, only two standards, ACR and ART TREES, were fully approved, limiting the credit options for airlines to use under CORSIA, and putting pressure on the supply of CORSIA-eligible credits.
Read more about CORSIA and what it means for international airlines here.
In 2024, significant progress was made under the Global Biodiversity Framework. COP16 in Cali, Colombia marked the first Conference of the Parties since adopting the Kunming-Montreal Global Biodiversity Framework (GBF) at COP15 in 2022, where nations committed to ambitious targets such as conserving 30% of land and water by 2030. There was a strong emphasis on including Indigenous Peoples and Local Communities (IPLCs) in biodiversity governance, transforming food systems, reducing waste, and the use of water to address biodiversity loss and resource scarcity. A major outcome of COP16 was also a strengthened commitment to biodiversity financing with several new initiatives announced including a $400 million pledge to the Global Biodiversity Framework Fund (GBFF).
At COP16, South Pole launched the Alto do Ventanas Habitat Bank – one of Colombia's first habitat banks focused exclusively on restoration. Habitat banks are becoming crucial for meeting global biodiversity goals.
Read more about our events at COP16 in our overview and watch the recordings.
As we step into 2025, the global climate agenda demands bold action and collaboration. Businesses must prioritise sustainability and focus on:
While 2024 was a year of progress and reflection, 2025 holds the promise of transformative breakthroughs. The lessons learned this year — from leadership transitions to innovative technologies — provide a roadmap for seizing the opportunities to create lasting impact. Together, we can build on this momentum to deliver true climate impact for all.
