Auroville Consulting’s Post

A very interesting run down of the basics of the volunatry carbon markets. Carbon and Carbon Markets have been the talk of the town recently with the Carbon Border Adjustment Mechanism regulations kicking in. Paralelly, awareness among stakeholders on climate change and its potential transition and physical risks have also prompted organisations to set reduction and net-zero targets. For all organisations outside the gambit of regulatory requirements for carbon reduction, the volunatry carbon markets have been and are going to be the key tool to achieve these targets. Although recent questions on the effectiveness in the carbon reduction have been raised, and are a valid concern, these are to do with the quality of the individual projects and should not reflect on the concept of carbon offsetting in itself. Verifyers and Validators who act as third party auditors along with purchasers of credits need to be vigilant of the projects they support as they are the major quality checkpoints in the market. With the Green Credits Scheme under development, India is soon to see its own Government Regulated Voluntary Carbon Market and see new finance routes opening up towards supporting low carbon projects and initiatives.

Hands up, how many of you think this environmental, Social and Governance (ESG) stuff is just a lot of smoke and mirrors? 🤔 ESG, a well-intentioned concept, raises questions about its nuances and dogmatism. The governance aspect, often overlooked, is crucial. Some argue (like me) that many US-listed companies might not pass the governance filter due to extensive lobbying activities that could be deemed corrupt. What do you think? Carbon offsets, a hot topic, allow companies to pay for polluting. The US is stepping up its role in carbon credit markets, focusing on integrity and transparency with new federal guidelines. Curious about carbon offsets? They are purchased credits to balance emissions, supporting projects that reduce or store carbon dioxide equivalent to the buyer’s emissions. Offset credits, certified by governments, represent one metric ton of CO2 reduction or equivalent GHGs. Concerns about carbon offsets' effectiveness are prompting revised methodologies and project eligibility to enhance decarbonization efforts. Another perspective would be to impose material fines on polluting companies, which would significantly incentivize them to reduce pollution (rather than paying off a politician). Check out this insightful article on the topic: 🔗https://lnkd.in/giqc9igB #ESG #Governance #CarbonOffsets #Decarbonization #USCarbonMarket #EnvironmentalSustainability

There is growing scrutiny and criticism surrounding corporate carbon offsets: https://lnkd.in/dA_SqzPG While these credits are intended to counterbalance emissions, their effectiveness and transparency are increasingly being questioned. There is a rising concern that some companies may rely on these offsets to project a green image without making significant operational changes to reduce emissions. This has sparked a debate on the need for stricter regulations and more reliable standards to ensure that carbon offsets truly contribute to combating climate change. Searoutes has always stated that emissions reduction at the outset of route planning has a more powerful impact than “offsetting” after the fact. Better to prevent the environmental injury in the first place than attempt to rehabilitate it afterward. We reinforce this by providing a tangible solution with our CO2 API and vessel tracking tools, helping companies not just compensate but actively reduce their environmental impact. By offering precise emissions tracking and optimization, we enable businesses to make data-driven decisions, enhancing #sustainability beyond just purchasing offsets. www.searoutes.com

Normative's #carbon news roundup is a great way to stay up to date with sustainability legislation, net-zero news, and decarbonization success stories. The roundup goes beyond just sharing the news, and actually explains what it means for your business! The May roundup covers: 🇪🇺 #CSDDD is now approved 🇬🇧 The UK is combating greenwashing 🇪🇺🇺🇸 The EU and US are tackling methane emissions Read the May news roundup to learn more about these stories & what they mean for you! @[@[Normative.io](urn:li:organization:10905991)](urn:li:organization:10905991) #CarbonNewsRoundup

Normative's #carbon news roundup is a great way to stay up to date with sustainability legislation, net-zero news, and decarbonization success stories. The roundup goes beyond just sharing the news, and actually explains what it means for your business! The May roundup covers: 🇪🇺 #CSDDD is now approved 🇬🇧 The UK is combating greenwashing 🇪🇺🇺🇸 The EU and US are tackling methane emissions Read the May news roundup to learn more about these stories & what they mean for you! @[@[Normative.io](urn:li:organization:10905991)](urn:li:organization:10905991) #CarbonNewsRoundup

Scope 3 emissions reporting can have benefits beyond carbon reduction, according to industry respondents to DESNZ's call for evidence, helping with: 💠 Reputation 💠 Investor ratings 💠 Supplier relationships 💠 Incentivising resource efficiency & circularity This echoes some of what businesses told me & Heather Plumpton when we looked at how to scale up circular business models back in 2022. Moving from voluntary to mandatory Scope 3 reporting for larger firms could be a game changer for developing circular value chains. From the call for evidence: “One of the benefits of scope 3 reporting is the increased visibility it provides on the emissions embedded in materials and products a company uses throughout its supply chain. Emissions associated with purchased goods and services upstream in a supply chain are often the largest source of a company’s carbon footprint. This increased visibility, and target setting based on it, would reduce non-carbon environmental impacts as it encourages greater resource efficiency and circularity.” (Trade association) https://lnkd.in/eTiZqn8n? (Our 2022 Green Alliance report: https://lnkd.in/eeWj2wat)

Normative's #carbon news roundup is a great way to stay up to date with sustainability legislation, net-zero news, and decarbonization success stories. The roundup goes beyond just sharing the news, and actually explains what it means for your business! The May roundup covers: 🇪🇺 #CSDDD is now approved 🇬🇧 The UK is combating greenwashing 🇪🇺🇺🇸 The EU and US are tackling methane emissions Read the May news roundup to learn more about these stories & what they mean for you! @[@[Normative.io](urn:li:organization:10905991)](urn:li:organization:10905991) #CarbonNewsRoundup

Report: Carbon offset market plummeted from $1.9bn in 2022 to $723m in 2023 A recent report has revealed a significant contraction in the carbon offset market, which plummeted from $1.9bn (£1.5bn) in 2022 to $723m in 2023. This decline was triggered by a series of scientific studies and media coverage that questioned the effectiveness of many offsetting schemes in addressing climate change and biodiversity loss. The study, conducted by Ecosystem Marketplace, a nonprofit organization that gathers carbon market data from brokers and traders, showed a 61% reduction in the market size. https://lnkd.in/eTsqkYqe The shrinkage was linked to a wave of scientific research and media stories that deemed millions of offsets as “worthless”. Some of these projects were even associated with human rights issues. A carbon credit is designed to symbolize the decrease or elimination of one tonne of CO2 emissions. Major corporations have utilized these credits to brand their products as “carbon neutral” and assure consumers that their activities, such as flying, purchasing new clothes, or consuming certain foods, do not exacerbate the climate and biodiversity crises, accordin to The Guardian. https://bit.ly/4536W5s Offsets produced by rainforest protection schemes, the most common type, saw a 62% depreciation in their value from 2022 to 2023. These schemes were the subject of a collaborative investigation by the Guardian, which discovered that over 90% of rainforest carbon offsets from a large selection of Verra projects – the top global certifier – are worthless. https://bit.ly/3V1WnLr The investigation also revealed potential human rights violations at a key project, a claim that Verra contested. https://lnkd.in/dHt3KyV5 Julia Jones, a co-author of one of the investigative studies and a professor at Bangor University, emphasized the need for immediate reforms for the carbon markets to function as planned. In a recent event, the White House endorsed industry-driven efforts to reform carbon markets, supporting initiatives that prevent companies from greenwashing and ensure that credits reflect actual environmental impacts. Janet Yellen, the US treasury secretary, stated that while companies should prioritize emission reductions, the Biden administration still wants carbon credits to be successful, according to Finacial Times. This development occurs amidst intense disagreements among environmental groups regarding the role of carbon credits in assisting companies in achieving net-zero targets. https://lnkd.in/e9sVw7kp Picture credit: rts #deforestation #rainforest #co2emmission #carbonoffsets #climatecrisis #carbonmarket

Normative's #carbon news roundup is a great way to stay up to date with sustainability legislation, net-zero news, and decarbonization success stories. The roundup goes beyond just sharing the news, and actually explains what it means for your business! The May roundup covers: 🇪🇺 #CSDDD is now approved 🇬🇧 The UK is combating greenwashing 🇪🇺🇺🇸 The EU and US are tackling methane emissions Read the May news roundup to learn more about these stories & what they mean for you! @[@[Normative.io](urn:li:organization:10905991)](urn:li:organization:10905991) #CarbonNewsRoundup