Carbon market shakeout
6.4%: Share of credits available in the global carbon market will “confidently” be able to pass an ongoing industry-wide audit, according to a report this week from the carbon credit firm Abatable.
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Carbon market shakeout
Share of credits available in the global carbon market that will “confidently” be able to pass an ongoing industry-wide audit, according to a report this week from the carbon credit firm Abatable. Following widespread accusations of greenwashing, the methodologies used by carbon project developers and registries to calculate how much carbon a given project can offset, and for how long, are currently under review by an independent oversight group. Later this year, the group will begin issuing a seal of approval to projects that meet a high bar on criteria like additionality and permanence. Nearly half — especially those based on forest conservation — have a low or medium chance of passing muster, Abatable found, and the small share with a high likelihood of passing are mostly projects that focus on cutting emissions from industrial sectors. The review process is unlikely to lead to many projects being fully pulled from the carbon market, Abatable co-founder Maria Eugenia Filmanovic said. Instead, expect to see a wider divergence in pricing, with non-certified credits selling on the cheap.