Are Carbon Offsets Legit or BS?
Episode
14
Published:
Updated:
November 10, 2021
Do they offset emissions or just our guilt? Come along as we explore the pros and cons of carbon credits and their ability to generate real emission reductions.
Do they offset emissions or just our guilt? Come along as we explore the pros and cons of carbon credits and their ability to generate real emission reductions.
Reduce first! – take less flights and drive less
Projects – Gold Standard Marketplace - our recommendation for buying offsets
Work is underway to hammer out details of how global carbon credit markets will be managed under the Paris Agreement. To make sure offsets actually cut emissions, we need to
Send him a quit note here - US Department of State - Contact Us
Subject - Ensuring carbon credits deliver real emission reductions
Potential Talking Points
Claim that cows have more impact on climate than cars depends on the timescale – Climate Feedback
Global Greenhouse Gas Emissions Data | US EPA
Over 100 Countries pledge to cut methane as part of Global Methane Pledge
Cut methane 30% by 2030 compared to 2020 levels
Focused on fossil fuel extraction and delivery
China, India and Russia are currently missing from list
Additional pledges to phase out coal, but U.S. didn’t sign b/c Manchin
Sources
Over 40 Countries Pledge to End Use of Coal Power at COP26 - The New York Times (nytimes.com)
Credits/offsets are from projects implemented specifically to reduce GHG emissions
Measured in metric tons / CO2 equivalent
Typical cost is $10 – 20 / ton CO2 equivalent
Types of carbon offset projects
Reducing emissions from deforestation and forest degradation (REDD+)
Reforestation
Agricultural land management
Methane capture (renewable natural gas)
Some have non climate benefits - cookstove projects in Africa
Renewable energy projects
Quality offsets
Deliver additionality - projects that wouldn’t have occurred without funding from carbon credits
Third party validated
No leakage
Carbon offset market is growing in size each year
About $300M in 2019
International Institute of Finance predicts it could hit $100 billion / year by 2050
Sources
4 Types of Carbon Offset Projects - EIC
Carbon credits: Institute of International Finance sees huge potential (cnbc.com)
Reducing is always the first priority
Offsets should only be used in areas were emissions are currently unavoidable
Example - flying for personal reasons
Start by reducing
When you do travel by air, purchase reputable offsets for your travel
Sources
Being used in lieu of reducing emissions
Fossil fuel companies have started branding LNG carbon neutral by purchasing offsets from undisclosed sources
Shell has branded 14 ships of LNG carbon neutral as of Jul 2021
Lack of transparency on source of credits and price paid
Solution - should be reserved where emission reductions aren't yet cost effective / available
Ensuring benefits are achieved
Need additionality - would benefits have been achieved within investment of carbon credits?
Currently, no international standard or oversight body
Investigation by Guardian and Unearthed into credits used by airlines
Many outdated / low quality credits
Up to 60% of credits on market today are questionable - CEO of Trove Research
Solution
Sources
Is the ‘Legacy’ Carbon Credit Market a Climate Plus or Just Hype? - Yale E360
Carbon offset market needs radical reform | UCL News - UCL – University College London
Net-zero illusions: The rise of ‘carbon-neutral’ fossil fuels - Carbon Market Watch
COP26: Kyoto-era carbon credits will not repay our debt to the climate - Carbon Market Watch
Taskforce on Scaling Voluntary Carbon Markets
Initiated by Mark Carney – special climate envoy to Boris Johnson
Goal of scaling efficient / effective voluntary carbon market to meet goals of Paris Agreement
Established governing body in September
First priority finalizing standards for global carbon credit quality
Article 6 of Paris Accord
Goals
Points of contention
Sources
Explainer: The toughest of tasks at U.N. climate talks: Article 6 on CO2 markets | Reuters