The effectiveness of avoided deforestation projects that offer carbon credits as a means of curbing climate change is being called into question, with reports stating that many projects are failing to deliver on their promises. The issue, which relates specifically to REDD+ projects (Reducing Emissions from Deforestation and forest Degradation), has been highlighted by The Guardian newspaper which stated that 90% of Verra’s avoided deforestation projects were systematically overissuing credits. Verra has disputed the claims and said that its methodologies are robust. Regardless, the reputation of avoided deforestation carbon credits has been severely impacted, and a growing number of companies are turning their attention to carbon removal projects instead. This is essentially a shift away from buying credits for avoided deforestation projects, which is perceived as being too problematic compared with investing in methods that store carbon for more than 1,000 years. Companies including Alphabet, Meta, McKinsey Sustainability, Shopify and Stripe have founded the Frontier partnership, which seeks to invest in carbon removal projects ahead of time. Microsoft and Salesforce are also prioritising carbon removal, although some analysts believe such efforts may be something of a rebranding exercise. Meanwhile, critics say companies should be focused on wider financing methods beyond carbon credits, including blended finance, supply chain climate and nature finance, grants and collaborative finance models.
The restructuring capability of blockchain and the concept of carbon credits.
Blockchain technology is being used to create a more transparent and efficient carbon credits market. The global carbon credit market...