Companies and individuals can mitigate their carbon footprint by purchasing carbon credits to offset emissions. The voluntary carbon markets represent an unprecedented opportunity to mobilize resources to fight climate change.
Greenhouse Gas Emissions are Rising
The last century witnessed a ten-fold increase in emissions from human activity, resulting in significant climate impacts across the globe.
Reversing this trend, and meeting the goals outlined in the Paris Agreement, will require a massive shift
Addressing the issue
1. Reduce Emissions
Where possible, organizations and individuals can take steps to limit their carbon output.
2. Offset Emissions
Some industries have “non-abatable emissions” that cannot be reduced with existing technology and require an alternate solution.
This is a necessary market in the transition to net zero. This is an imperative, which is why we are putting so many resources into it. This needs to be a $50-$100bn per annum market.
Putting a price on emissions
Carbon Markets are an essential component of the transition to a net-zero future. Pricing emissions rewards low-emitters and applies financial pressure to high-emitters, fostering innovation and technological advancement.
Voluntary + Compliance
Voluntary Carbon Markets
Companies and individuals can voluntarily compensate for their greenhouse gas emissions by purchasing verified carbon offset credits generated by carbon reduction or removal projects around the globe. This allows emitters to achieve net-zero commitments while supporting innovative climate solutions.
The United Nations Intergovernmental Panel on Climate Change estimates that we must remove from the atmosphere 10 Gt of CO2 per year by 2050. Today we remove less than 1 Gt. Economic models predict that voluntary carbon markets are expected to increase 15x by 2030 and 100x by 2050, with growth projections of up to US$180 billion annually by 2030.
1 Carbon Credit =
1 Tonne of CO2
A carbon credit is a certificate awarded to a project after an auditing party confirms that project activities have reduced or removed one tonne of CO2 from the atmosphere.
Examples of Offsets
The Life of a Carbon Credit
The creation of a carbon offset credit requires a rigorous certifying process implemented by established carbon registries such as Verra, Gold Standard, or Climate Action Reserve. After the project has been successfully registered and implemented an approved independent verifier audits the project’s emissions impact to calculate the corresponding number of carbon credits generated. Once created, carbon credits have a unique serial number that can be held, traded, and ultimately retired by an end buyer who can claim the reduction against their emissions.