The Carbon Credit Solution.
Carbon credits provide a cost-effective, scalable and immediate solution to achieve reductions in our carbon footprints
What are carbon credits?
Carbon credits are generated by activities that reduce or remove emissions through nature-based solutions, such as afforestation or re-forestation and the protection of existing high carbon stock natural assets, for instance peatland or tropical forestry, or through technological innovation in renewable energy, energy efficiency or carbon capture and storage.
The market has been regulated for over 15 years and there are internationally recognised independent accreditation organisations such as the Gold Standard and Verra who only certify high-quality projects.
THE ROLE OF HIGH-QUALITY CARBON CREDITS ON THE PATHWAY TO NET ZERO
Why buy voluntary carbon credits
The world needs to reduce emissions fast to keep within 1.5°C. The science tells us we need to cut global emissions by 55%
to be on a pathway to net zero by 20301 and reach net zero by 2050. Emissions reductions in companies’ own supply chains are unlikely to be sufficient. Using voluntary carbon credits as part of a company’s decarbonization strategy in a strategic, credible way is an essential tool to meet the Paris targets.
Nature-based solutions – or NBS – (protecting and restoring forests, grasslands and wetlands) are a particularly good example of this. They also drive north south investment and are materially more affordable than technological solutions such as direct air capture.
CARBON CREDITS: NATURE-BASED SOLUTIONS
NBS are available already today and can provide up to one third of the emissions reductions required by 2030. In addition, investing in nature provides immense benefits for biodiversity, water, clean air and crucially local livelihoods. We estimate that to achieve their potential requires at least $300 billion annually by 2030, a similar amount to that invested in renewable energy in 2019 ($280 billion), but 100 times what was invested in NBS in the same year. Carbon credits are one of the most tangible, near-term ways to unlock this investment.
There are other project types which can benefit from the sale of carbon credits. In the short to medium term, these are technological solutions such as cookstoves, landfill gas, and off-grid renewable energy in least developed countries, and in the medium to long term carbon capture and storage (CCS) and direct air capture.
Data from Giraden et al., 2021, and adapted from nature.com/articles/d41586-021-01241-2