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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.
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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Credit: Bakhtiar Zein/Big Stock Photo
Carbon markets in question as payment uncertainties loom
A surge in carbon removal technologies raises questions about sustainable funding sources.
In short:
- Innovation in carbon removal is escalating, yet funding mechanisms remain unclear, with companies traditionally buying offsets for environmental compensation.
- Recent skepticism has led to a decline in demand for voluntary carbon market credits, citing reliability issues and a lack of enforcement standards.
- Key industry figures express concerns over the sustainability of carbon markets, highlighting the need for established accounting standards and reliable enforcement.
Key quote:
"More than anything, it’s perpetuated a lack of trust in the voluntary carbon market, which has greatly affected demand."
— Arbor Day Foundation
Why this matters:
Trust and transparency are essential for the growth and effectiveness of carbon markets. Without these, the potential for these markets to facilitate significant environmental restoration and carbon mitigation is compromised, impacting future business models and environmental policies.
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Photo by Matthias Heyde on Unsplash
Blue Carbon is one of many companies inking carbon market deals
An Emirati company wants to broker a nascent market in which nations trade emission reductions even before regulations are agreed upon.
India's capital bets on more e-buses, solar energy to curb pollution
India's New Delhi, the world's most polluted capital, is betting on expanding its fleet of electric buses and using more solar power in the next three years to improve the city's air quality, its finance minister said on Wednesday.
Newsletter
Climate change: Africa has a major new carbon market initiative - what you need to know
Climate finance for the African continent got a boost at the 2022 United Nations Climate Conference, with the launch of the African Carbon Markets Initiative.
Biden's Delaware vacation home faces 'extreme' flood risk as climate change leads to rising seas
The President’s vacation home near Rehoboth Beach, Delaware, is in the middle of a flood zone, and an analysis by a climate research group shows that the house is facing “extreme” flooding risk that is expected to get more severe over time.
Indonesian food banks try to tackle food waste and climate change issue
Tons of food ends up in landfills every year, adding to climate change and hunger issues. What should we do to mitigate these problems?
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