Old carbon credits could swamp the market
The carbon offset market looks set to grow: our report projects that by 2050 the carbon offsets market will probably be worth more than US$90 billion (£67 billion) and maybe as much as US$480 billion – at least a 200-fold increase on the US$0.4bn spent in 2020.
The bad news is that the expansion may not actually reduce emissions because, at the moment, 600 million to 700 million tonnes of old carbon credits could be claimed in the carbon offset market – seven to eight times the current annual demand. Were these all to be claimed it would swamp the market, meaning companies buying cheap credits from projects with little or no additionality, and so little or no climate benefit.
To avoid this the world needs an independent international body to oversee and carefully regulate the #carbon offset #market. This would have to ensure the registries of verified #carbon credits only hold high quality projects. Finally buyers need to be empowered to demand credits that will clearly make a real difference.
#climatechange #CarbonCredits #carbonoffsets