As a leading carbon credit registry and exchange, Capturiant has been at the helm of pioneering discussions, analyses, and insights into how carbon trading mechanisms function and their significant impact on global sustainability efforts. In this post, we will take a step back to review our most important blog posts published to date. From the basics of carbon markets to the strategies that drive environmental and economic benefits, we aim to consolidate our learning and highlight our achievements. Let’s revisit the milestones in our shared understanding and contribution to a greener planet.
Need for Speed — Carbon Credit Issuance Must Accelerate
In theory, carbon credit markets should operate like any commodities market: owners of the underlying commodity bring it to market for immediate sale or even a presale. Unfortunately, today’s environmental developers face excessive and extremely long delays. The goal for carbon credit issuance should be 30 days or less with complete documentation and analysis along with all data in an auditable distributed ledger (blockchain) solution.
The Cost Problem in Carbon Markets
Carbon markets have the potential to be a powerful tool in promoting environmental improvement, but a number of factors increase the cost and risk of participating in the carbon credit market, making it difficult for GHG-reducing programs to get launched and marketed. How can this problem be solved?
The Wild West of the Carbon Market — Regulators around the Corner
Despite its importance to reducing greenhouse gas (GHG) emissions, the carbon credit market remains a Wild West with little to no government oversight. This lack of regulation stagnates the growth and success of the carbon market and its efforts to reduce and remove GHG emissions.
Dilemma: The Standards Problem in Carbon Markets
The basic theory behind carbon markets is that companies wishing to reduce their carbon footprint can fund other companies’ emission removal and reduction efforts by purchasing carbon offsets. However, this system can only achieve its purpose if offsets are properly vetted to ensure the claimed emissions removal or reductions are real, a process known as validation.
Have Your Carbon Credits been Authenticated?
Authentication? Yes, it’s been missing from the environmental assets sector until 2023. As corporations globally are prioritizing carbon-neutral initiatives, the process of authenticating carbon credit projects has gained notable prominence. So, what exactly does Authentication encompass, and why is it so pivotal?
Credit Quality and the Shift Away from Nature-Based Projects
In recent years, the voluntary carbon market, or VCM, has been a roller coaster of rapid growth and turmoil. This article aims to explore the evolving landscape of credit quality within the VCM. A recent report by BCG highlights that buyers in the VCM value certain quality attributes. As we see a shift away from nature-based solutions, these attributes will play an increasingly significant role.
The EU’s Carbon Tariff: An Overview and Implications
The European Union has initiated the first phase of its Carbon Border Adjustment Mechanism, marking a significant policy shift with the introduction of the world’s first carbon tariff. The CBAM primarily targets imports of carbon-intensive products, aiming to address the issue of ‘carbon leakage’, where companies move operations to regions with less stringent emissions regulations, by equalizing the cost of carbon emissions between EU and non-EU producers.
The Prudent Path to Carbon Neutrality: Managed Carbon Credit Pools
In efforts to reduce their emissions impact, companies have traditionally taken a do-it-yourself approach, cherry-picking carbon credit projects to match their emissions. This method is risky and inefficient. For most companies, these tasks are unrelated to core competencies and can create a significant drain and distraction on resources, pulling attention and funds from the core business activities.
Seizing the Climate Investment Opportunity
The urgent need to address climate change has created a massive investment opportunity across all sectors. Achieving a low-carbon future requires a fundamental reallocation of capital, with annual investments needing to increase significantly from current levels. While market forces, falling renewable energy costs, and increased investor pressure are already propelling the transition, clean tech solutions alone cannot achieve decarbonization. Attaining a low-carbon future requires encompassing and transforming high-emitting sectors.
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