BeZero considers the durability of carbon removal in this report published in May 2023. Following increasing corporate interest in this topic, this report aims to explain the importance of durability and its principles. It also shares advice for navigating scientific uncertainty in an emerging space.
Does investment in carbon credits hinder decarbonization among the world’s largest companies? Published by Sylvera in May 2023, this report responds to media criticism saying that buying carbon credits is an excuse to continue business as usual. It analysed the Scope 1 and 2 emission data and carbon credit purchases of 100 of the largest businesses across different industries. It found that those purchasing credits are cutting emissions by 6.2% each year while those who aren’t are cutting only 3.4%.
This makes clear the urgency of investing in tropical forests. Published in May 2023, The World Resources Institute explains how the voluntary carbon market can channel finance for forest conservation and restoration. It provides context to corporates embarking on their decarbonisation journey and shares four useful steps that they can take to help end tropical deforestation.
How can REDD+ be financed? Released in April 2023, this paper from IETA explains the differences between a carbon credit used in a market-based system such as Article 6 of the Paris Agreement and the VCM versus REDD+ results created through Article 5 of the Paris Agreement, which was designed for results-based payments.
This handbook from the Environmental Defense Fund (EDF) is a guide to unlocking the potential of natural climate solutions. Published in April 2023, it explains natural climate solutions in the context of carbon markets, considering how these mitigation solutions can be scaled. It also addresses the key challenges facing the market at that time.
Released in April 2023, the G7’s principles for high-integrity carbon markets are a resource for stakeholders working on both the demand and supply side of the VCM. By following these principles, the G7 suggest that stakeholders can take full advantage of the VCM’s potential. However, these principles are non-exhaustive and, as the science develops, will need further refinement to ensure they continue to reflect best practices.
The EU Commission adopted the Green Claims Directive in March 2023 to prevent companies from making misleading claims about their environmental impact. This is relevant to buyers of carbon credits to ensure they abide by the Green Claims Directive when promoting their climate action.
Set in a context of market criticism, the paper from The World Economic Forum addresses the challenges (lack of transparency, equity and quality) facing current carbon markets. Published in March 2023, it focuses on the potential of digital technology to help build the next generation of carbon markets that are free from these issues and can better deliver climate mitigation, biodiversity preservation and positive social impacts.
This report focuses on an important group of climate stakeholders: consumers. Published by Boston Consulting Group in March 2023, it is insightful reading for businesses looking to understand their clients’ perceptions of carbon credits. This survey, based on 1,320 consumers, found that greater transparency is needed for consumers to engage with carbon credits. It found a willingness among consumers to learn more about carbon credits and to switch brands if one offered offsets and the existing one did not.
Published in February 2023, this report from The Nature Conservancy (TNC) helps carbon credit buyers conduct thorough, credible due diligence before purchase. Buyers want to be certain that the projects they buy from deliver impacts for the climate, nature and people. The TNC spoke to 24 demand-side actors to help define best practices for due diligence.