As more hemp growers and processors consider entering the carbon credit market, caution is urged due to the potential for scams and fraud. The carbon accounting industry has already seen problems concerning double counting and false certifications or overstated reduction claims. Investigations into Verra, the world’s leading carbon standard, revealed that 90% of offset credits were likely to be “phantom credits” that did not represent genuine carbon reductions, leading to the resignation of the CEO. Notable scams in the US have involved fraudulently selling carbon offsets that were not reducing emissions as claimed. To avoid pitfalls, hemp operators are advised to work with third-party certification providers to ensure credits are legitimate and follow high-integrity carbon standards. Operators should also choose credits from projects located in high-emitting regions, with clear and measurable goals and assess the negativity and additionality of any activity. Thorough research into potential service providers, including the professional backgrounds of company officers, is also recommended, along with a clear explanation of the service provider’s accounting systems and justification of their costs. It is also stressed that the hemp industry cannot afford a setback in its sustainability and climate branding by hunting quick profits through carbon crediting programs that are full of conflicts of interest, threatening the opportunity to monetize the climate potential of hemp for all industry participants.
ICE is preparing to introduce a futures market for carbon credits under CORSIA, which will focus on reducing airline emissions.
Intercontinental Exchange (ICE) announced plans to launch a physically delivered futures contract for carbon credits eligible for use by the...