Carbon-credit market needs reform to survive, study finds

The carbon-credit industry must implement rigorous standards or face extinction, according to a new international review.

Patrick Greenfield reports for The Guardian.


In short:

  • The carbon-credit market shrank significantly last year due to reports questioning the environmental impact of many schemes.
  • Experts from the Climate Crisis Advisory Group suggest that proper reform could generate billions for climate action.
  • Recommendations include adopting scientific standards, ensuring financial benefits for local communities and prioritizing carbon-removal projects.

Key quote:

"The voluntary carbon market is very reluctant to take this fully on board. Our report is totally independent of them. It is going to be challenging, but our simple message is that unless you do this, you’re out of business."

— Sir David King, former UK chief scientific adviser and head of the Climate Crisis Advisory Group.

Why this matters:

Carbon credits have been presented as a pivotal tool in the fight against climate change, offering a mechanism for businesses to compensate for their carbon footprint by funding projects that reduce or absorb CO2 emissions. However, the lack of stringent standards has led to inconsistencies and allegations of greenwashing, where companies claim environmental benefits without substantial actions.

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