POV: In Defense of the Voluntary Carbon Market
By Michael Berends, CEO and Co-Founder, ClearBlue Markets
In a recent article for the Forbes Business Council, Supporting Voluntary Carbon Markets to Combat Climate Change, I wrote about how, despite its flaws, the voluntary carbon market (VCM) offers a viable path to significant emissions reductions.
We don't have time to start over
The urgency to combat climate change is undeniable. To meet the ambitious targets set by the Paris Agreement and other pledges, immediate and significant reductions in greenhouse gas emissions are crucial. I believe the voluntary carbon market (VCM) presents a practical solution to accelerate decarbonization.
Having spent nearly two decades in the VCM, I've witnessed firsthand the positive impact of carbon offsets on global decarbonization efforts. The VCM enables organizations to purchase carbon offset credits, which are generated by projects that reduce, avoid, or remove emissions. This system not only provides financial support to project developers but also plays a crucial role in reducing global carbon footprints.
Carbon offsets, as long as they are additional and verifiable, play a significant role in preventing emissions from contributing to global warming. While offsets are not a substitute for direct decarbonization efforts, they incentivize companies to accelerate emission reductions by adding a cost to their carbon emissions.
Despite its potential, the VCM faced scrutiny in 2023 when Verra, a standards-setting organization, investigated concerns about some projects. While some claims were credible, Verra's swift actions highlighted the industry's commitment to maintaining high standards and accountability.
Building up the VCM, despite its imperfections, is crucial.
Companies involved in the VCM can advocate for rigorous verification processes, support organizations like Verra, educate stakeholders, prioritize internal emission reductions, and communicate transparently about carbon reduction efforts.
Dismissing it entirely would hinder progress in our fight against climate change. By fostering improvements and promoting market transactions, we can make meaningful strides toward a more sustainable future.