A new era of climate change mitigation efforts is threatened by the flaws in the carbon credit market, which could undermine its effectiveness and lead to ‘zombie’ credits from failed projects.
The article discusses the challenges and limitations of carbon credit projects, which are intended to offset greenhouse gas emissions. The main issues with carbon credits include:
A carbon credit is a tradable certificate or permit representing the right to emit one ton of carbon dioxide equivalent (tCO2e) greenhouse gases.
Created through various projects, such as reforestation, renewable energy, and energy efficiency initiatives, these credits allow companies and individuals to offset their emissions.
The Kyoto Protocol established the Clean Development Mechanism (CDM), enabling developed countries to invest in emission-reducing projects in developing nations.
Carbon credits have become a crucial tool for reducing greenhouse gas emissions and mitigating climate change.
-
Nonadditionality: Carbon credits must be additional, meaning that they would not have been emitted if the project didn’t exist. However, this assumption is often not met, as protected forests were never in jeopardy of deforestation.
-
Inaccurate baseline: If a project’s emissions savings are incorrectly calculated, more credits may be issued than the project will actually offset.
-
Leakage: A project should not increase the demand for an emitting activity. If a cattle rancher preserves forest but trees elsewhere are cleared for grazing land, there is no emissions reduction.
-
No permanence: Unforeseen circumstances, such as wildfires or disease, can cause a project to lose the carbon it has stored or removed, reversing the benefit.
These issues can lead to ‘zombie’ credits from failed projects that are used for offsetting, which undermines the effectiveness of carbon credit schemes.
Carbon credits are certificates or permits issued to companies or individuals that have reduced greenhouse gas emissions.
They represent the right to emit a certain amount of CO2, which can be traded on the carbon market.
Carbon credits are generated through various projects, such as renewable energy installations, reforestation efforts, and energy efficiency improvements.
The goal is to reduce emissions globally by creating a financial incentive for companies to invest in cleaner technologies.
To improve the voluntary carbon market, experts suggest:
A carbon market is a system that allows companies, governments, and individuals to buy and sell 'carbon credits'.
These credits represent the right to emit a certain amount of greenhouse gases, typically measured in tons of CO2 equivalent.
Carbon markets aim to reduce emissions by creating a financial incentive for companies to invest in cleaner technologies and practices.
The European Union's Emissions Trading System (EU ETS) is one of the largest carbon markets globally, with over 12,000 participants.
According to the International Energy Agency, 'carbon prices have increased significantly since 2020' , reaching $50 per ton CO2 equivalent in some regions.
-
Government regulation: Regulation could help ensure that carbon credits meet a standard quality and provide transparency.
-
Monitoring and verification: Remote-sensing technologies and independent companies can assess projects and verify their emissions savings.
-
Buffer pools: Buffer pools can be used to insulate against unforeseen circumstances, but they may not be sufficient if the market is not regulated.
-
Removal-based technologies: The market should shift towards removal-based technologies, such as carbon capture and long-term storage.
Ultimately, buying carbon credits through an airline or supporting offset projects on your own can have limited impact compared to reducing emissions by changing behavior, such as flying less, consuming less meat, and using public transportation.
- sciencenews.org | Buying carbon credits to fight climate change? Here’s what to know
