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.
The Rainforest Foundation UK claims that all the leading carbon credit verification schemes have allowed millions of credits to enter the voluntary carbon market which do not accurately represent reductions in greenhouse gas emissions.
