3️⃣The Problem with Most Current Carbon Credits

Most carbon credits available today fall into two categories: carbon avoidance and carbon reduction.

Carbon avoidance and reduction credits fall short

Carbon avoidance credits are generated from projects that prevent future greenhouse gas emissions, such as renewable energy projects to replace fossil fuels. Carbon reduction credits come from activities that decrease current emissions, like improving energy efficiency in existing buildings. While these credits can be valuable tools in mitigating climate change, they primarily focus on reducing emissions, not actively removing existing carbon from the atmosphere.

The inherent limitation of avoidance and reduction credits lies in their inability to address the legacy carbon emissions already present in the atmosphere. They may slow down the rate of further accumulation, but they do not contribute to the crucial task of reversing the current levels of atmospheric carbon dioxide. While these credits have their merits in curbing the increase of CO2e in the atmosphere, they fail to address the core issue: removing existing CO2e from the atmosphere to reverse the effects of climate change.

Many offsets ineffective or even detrimental

Recent investigations have revealed significant shortcomings in the current carbon credit market, with many offsets proving ineffective or even detrimental. For instance, a study by The Guardian, Die Zeit, and SourceMaterial found that over 90% of rainforest carbon offsets certified by Verra, a leading carbon standard, did not represent genuine carbon reductions 1. Another investigation revealed that a forest carbon-offset project in California continued to sell credits even after a wildfire destroyed many of its trees, rendering them useless for absorbing CO2 2. These examples highlight the need for a new approach that prioritizes genuine carbon removal with verifiable results and ensures transparency and accountability.