December 11, 2023
In the race to get to net zero, companies are looking to carbon credits, the survey finds

Enterprise leaders acknowledge the urgency of the local weather disaster — and are taking motion, based on a report launched immediately by Conservation Worldwide and We mean business alliance.

The report gathered insights from greater than 500 medium to massive firms within the US, UK and Europe. Nearly 92 p.c mentioned lowering carbon emissions is an “pressing” precedence for his or her group, whereas 89 p.c see carbon credit as a helpful software for mitigating greenhouse fuel emissions that their organizations can’t but remove.

All respondents mentioned their organizations have already got or are working in direction of science-based local weather targets. Their strategy is to make use of carbon credit to enrich – not exchange – long-term decarbonisation, together with shifting to renewable power, electrifying transportation and lowering power use.

The survey outcomes contradict a standard criticism towards carbon credit: that firms use them as a license to hold on with enterprise as common. It reveals firms taking a ‘sure and’ strategy to decarbonization Investing in carbon credit to drive quick local weather motion, whereas working throughout the board to cut back emissions.

“Local weather change is the best check of collective motion in human historical past, and any disaster of this scale requires a complete and built-in technique,” mentioned M Sanjian, CEO of Conservation Worldwide.

He added, “Carbon credit are a confirmed software for quick discount of emissions, whereas concurrently pursuing long-term decarbonization ambitions.” “Whereas it’s not at all times mirrored within the headlines, this examine confirms that non-public patrons are certainly interested in high-quality credit score, with an emphasis on transparency and accountability.”

The carbon market is booming – and its worth is projected to succeed in $50 billion by 2030. If carried out proper, its potential to lift cash for conservation might be huge: final analysis He discovered from the We Imply Enterprise Coalition that if 1,700 of the world’s most emitting firms offset simply 10 p.c of their emissions by means of carbon market investments, greater than $1 trillion might be mobilized by 2030.

Whereas firms view carbon credit as a important element of local weather motion, they’ve expressed issues about trusted and accountable engagement, based on the survey. Greater than a 3rd of firms surveyed are actively investing within the voluntary carbon market – but they cited issues about greenwashing, challenges in assessing the standard of carbon credit, and a scarcity of regulation and transparency as obstacles to growing investments.

“Corporations are taking a really measured strategy to carbon markets, it isn’t the Wild West on the market,” mentioned Luke Pritchard, director of nature-based options at We Imply Enterprise. “They wish to make it possible for they’re collaborating in a dependable method and with excessive integrity.”

A number of initiatives have emerged to convey higher market transparency and supply steering to firms searching for to take a position. This consists of work Integrity Council for the Voluntary Carbon Marketthe Voluntary Carbon Market Integrity Initiative – and enterprise going through initiatives equivalent to Business Alliance for Scaling Climate Solutions.

Final month, We Imply Enterprise Coalition was printed in partnership with Conservation Worldwide Guidelines To assist firms develop a local weather transition plan. It consists of lowering emissions throughout their worth chains in step with science-based targets; higher shield, handle and restore nature inside firms’ worth chains as a part of their emissions targets; and investing in defending and restoring nature exterior worth chains – together with by buying high-quality carbon credit.

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