This article has been reviewed according to Science X's
editorial process
and policies.
Editors have highlighted
the following attributes while ensuring the content's credibility:
fact-checked
trusted source
written by researcher(s)
proofread
Five ways to improve the global voluntary carbon credit markets
The severity of climate change means we all need to reduce our carbon footprint to zero as quick as possible, including companies. The voluntary carbon markets were set up to allow companies to buy and sell carbon credits to offset their emissions.
A carbon credit is a promise to the purchaser that their greenhouse gas emissions will be offset in the future by the same amount. This could be by avoiding emissions elsewhere or extracting the same amount from the atmosphere.
There are two main ways to create a carbon credit. First, there are projects that avoid emissions, such as renewable energy, energy efficiency, avoiding deforestation or protecting wetlands and ocean ecosystems.
Second, there is removal and storage of carbon dioxide from the atmosphere by methods including reforestation, biochar or direct air capture. Reforestation seems sensible but care has to be taken to use the appropriate trees in the right location and forests need to be managed and maintained for decades to ensure they survive.
Biochar is created by burning organic waste in oxygen-free chambers, making a charcoal-like subsidence which is added to soils—this traps carbon and fertilizes plants. Direct air capture involves sucking carbon dioxide out of the atmosphere or trapping it when it is released from a power plant—that's then stored safely in deep rock formations.
To deal with the major issues in the voluntary carbon markets, we suggest five ways to restore trust. These principles should ensure that companies are offsetting for the correct reasons and guarantee that a ton of carbon credit actually equates to a ton of carbon removed from the atmosphere.
1. Increase transparency
Every aspect of the voluntary carbon markets needs to be fundamentally more transparent, removing the smokescreen used to hide poor practices. Financial transparency is essential to help to expose unethical practices, to demonstrate best practices and to secure fair deals for local communities.
The absence of international and state regulation means that engagement with organizations that represent normal people does not always occur, and even when it does this does not guarantee full financial transparency. It is in everyone's interest to have a robust and sustainable carbon credit system and it must be based on transparency.
Climate change mitigation efforts, including carbon trading, can unintentionally lead to harm and human rights breaches. To avoid such unintended consequences, trustworthy carbon credit projects must be governed by humanitarian principles of "do no harm."
The co-benefits, such as protecting and enhancing local biodiversity and human well-being, need to be measured and add additional value to the credits. We suggest a rights-based approach and inclusion of local and indigenous communities in the project design and ecosystem management.
4. Focus on high-quality credits
In an ideal world, the voluntary carbon markets should focus on carbon removal from the atmosphere rather than emissions reductions. This is because all businesses need to commit to net zero, meaning that avoiding and reducing emissions should already be happening, so only carbon removal makes a clear measurable difference from business as usual.
Carbon credits must never be seen as a primary strategy for achieving emissions targets, but rather as a supplementary measure, used only after a company has implemented all other possible reduction technologies and strategies. This ensures that carbon credits contribute genuinely towards achieving global climate goals, rather than allowing companies to bypass the substantial reductions required under net zero commitments.
5. More international support
The latest CCAG report and the above recommendations make clear the need for strong political support through regulation, transparency and governance principles at national, regional and international levels. Strengthening political infrastructure in relation to voluntary carbon markets will enhance the market's credibility and ensure that carbon offsetting schemes contribute meaningfully to global emission reduction targets over the long term.
The CCAG report suggests that ongoing reforms and new standards could mobilize billions of dollars of private money to support projects that actively reduce carbon emissions and provide a large range of co-benefits for communities and their surrounding environment. The world needs voluntary carbon markets to achieve their potential in scale, impact and fitness for purpose, in order for them effectively help combat the climate crisis.
Citation:
Five ways to improve the global voluntary carbon credit markets (2024, June 26)
retrieved 26 June 2024
from https://phys.org/news/2024-06-ways-global-voluntary-carbon-credit.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.