Daily Regulatory Signal

Swiss developer brings first timber-based removal credits to market, eyes greener construction sector

**Removals & Supply-Side Innovation** — A Swiss project developer has issued its first timber-based removal credits, aiming to channel carbon revenue into bridging the cost gap between conventional and low-carbon construction materials ([source](https://carbon-pulse.com/562026/)). This is a notable signal that novel removal credit types beyond nature-based solutions are reaching the market, potentially diversifying the supply stack and appealing to buyers with a preference for engineered or material-based removals. Meanwhile, one of South Korea's leading trading firms announced its entry into the VCM through a strategic equity stake in a carbon project developer ([source](https://carbon-pulse.com/562265/)), underscoring growing Asian corporate appetite for carbon asset origination rather than spot-market procurement. **Australia in Focus** — The Australian voluntary and compliance carbon landscape drew significant attention this week. Qantas unveiled a A$30 million ACCU partnership targeting land restoration in South Australia ([source](https://carbon-pulse.com/562248/)), reinforcing the airline's offset strategy. Australia's consumer protection regulator simultaneously released updated guidance for businesses making emissions claims involving carbon credits ([source](https://carbon-pulse.com/562298/)), raising the bar for greenwashing scrutiny. Market participants at a major conference warned that the debate around the ACCU Scheme is becoming overly polarised ([source](https://carbon-pulse.com/562280/)), and a veteran urged the government to preserve the voluntary infrastructure built under the now-closing Climate Active programme to maintain social license for carbon markets ([source](https://carbon-pulse.com/562268/)). **Policy & Standards Signals** — The IC-VCM published analysis on how high-integrity carbon markets can actively support biodiversity protection and 30×30 conservation targets ([source](https://icvcm.org/how-high-integrity-carbon-markets-can-support-biodiversity-and-30x30-targets/)), framing a co-benefits narrative that could lift demand for nature-based credits meeting CCP criteria. On the EU compliance side, steel, cement, and fertiliser producers called for the permanent deletion of the CBAM "kill switch" clause ahead of key institutional talks ([source](https://carbon-pulse.com/562096/)), signalling industry support for CBAM certainty — a factor that indirectly shapes the relative attractiveness of voluntary vs. compliance offsets in Europe. Verra also opened a new batch of VCS projects for public comment ([source](https://verra.org/projects-open-for-public-comment-october-19-2026/)), maintaining its pipeline cadence. **Broader Market Context** — RGGI allowances continued to trade flat near $40 with limited near-term catalysts ([source](https://carbon-pulse.com/562065/)). A new report highlighted that global carbon capture capacity could rise 82% to exceed 100 MtCO₂/year once projects under construction come online, though policy and financing bottlenecks remain significant ([source](https://carbon-pulse.com/562226/)). Canada's sustainable finance taxonomy developers announced they will delay the proposed oil and gas abatement category pending further feasibility work ([source](https://carbon-pulse.com/560505/)), a move that may keep certain transition-related credit demand in limbo. Taken together, today's signals point to a VCM that is diversifying its supply base, tightening integrity guardrails, and seeing fresh capital inflows from Asia — all while regulatory clarity in key jurisdictions remains a work in progress.

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