Carbon offsets are under intense scrutiny, with recent reports from Amazon to Australia exposing some flaws, which may lead to doubts about their effectiveness and, therefore, distrust. This is made worse by the fact that understanding this whole system- carbon offsets, removal, or avoidance- can be complicated. Think of it as trying to solve a complicated puzzle where various players, including experts, are figuring out how different pieces fit together best. Even with all these difficulties, it’s hard to ignore that the voluntary carbon market is expected to grow from 2 billion in 2020 to as much as $200 billion by 2030-40, according to one estimate. Therefore, restoring the trust of investors, governments, and the general public in this market is essential.
While it is often the problematic areas that make the headlines, it is essential to note that there are several good things about carbon offsets; most notably, they offer an indispensable solution to help us meet climate targets when other efforts to reduce emissions fall short. Undeniably, constructive criticism is essential for growth. Yet, it is also important to recognize the complexities of this nascent market that is evolving rapidly and has teething issues. Leaning on the classic adage to bring home the critical point. Was Rome built in a day?
There is thus a need to resurrect the trust in carbon offsets, away from this attention skewed to adverse outcomes. The unintended consequence of such skewed attention is that it fuels concerns, making key stakeholders skeptical about venturing into this critical space. It also disadvantages organizations that sell genuine, high-quality carbon offsets. And that’s a big problem because these offsets play an integral role in keeping global warming under control. Therefore, it is essential to re-emphasize some of the basics of carbon offsets, to enhance their effective contribution toward meeting global net-zero targets.
What Kind Of Carbon Offsets Align To Net Zero
For newcomers, there are two offsets: removal and reduction/avoidance. Both help reach net zero, but their importance changes over time. Both need more investment now. Organizations can create a portfolio