Some markets are regulated, such as those being established under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC). Others are unregulated, such as the voluntary carbon market, where companies and individuals buy carbon credits issued by various standards bodies.
On the supply side, climate projects issue carbon credits based on their estimated climate impact which are then sold, usually via intermediaries, on the carbon market. These projects include forestry projects, carbon capture and storage, wetland management, regenerative agriculture, renewable energy projects in countries that cannot afford them, and more.
On the demand side, buyers purchase carbon credits to use them for numerous purposes. Unfortunately, the most common use remains (supposedly) to compensate for or offset emissions. Offsetting is a highly problematic practice because it diverts the focus away from the real emissions reductions that must be urgently achieved, provides ample opportunity for greenwashing and usually does not represent the claimed climate impact.
We oppose the use of carbon credits to compensate for emissions. This means that sellers must not market their carbon credits as an offsetting tool. Purchasers of carbon credits must not use them to make dubious claims, such as ‘carbon neutral’ or ‘climate neutral’. Instead, buyers should clearly and transparently emphasise only that they contributed to climate action by providing a certain amount of funding to a certain type of project. This is known as the ‘contribution claim’ model.
In the international arena, Carbon Market Watch focuses on:
“Global carbon markets need to be designed and implemented in such a way that they achieve real and tangible climate goals while serving society and benefiting local communities. They must also be subsidiary and complementary to efforts to slash emissions.”
Gilles Dufrasne
Lead expert on global carbon markets
“Global carbon markets need to be designed and implemented in such a way that they achieve real and tangible climate goals while serving society and benefiting local communities. They must also be subsidiary and complementary to efforts to slash emissions.”
Gilles Dufrasne
Lead expert on global carbon markets
With H&M Group at their helm, some of the world’s largest clothing companies are belatedly improving their ill-fitting climate strategies, but none have refashioned their business model along sustainable lines,
Some of the world’s best-known tech giants are emitting more while presenting climate targets that cause a system error due to outdated accounting rules and the voracious appetite for energy
This briefing focuses on the tech sector and features analysis based on detailed case studies of Amazon, Apple, Google, Meta and Microsoft. These companies were selected as the largest five
Despite the best efforts of activists and some climate negotiators, the agreement reached on Article 6 carbon markets at COP29 in Baku risks facilitating cowboy carbon markets at a time when the world needs a sheriff.
Article 6 of the Paris Agreement sets out the principles for carbon markets. At COP29, governments must fix all the outstanding issues so as to ensure that Article 6 advances, rather than sets back, the climate agenda. This detailed guide explains what is at stake.
jonathan.crook[at]carbonmarketwatch.org
lindsay.otis[at]carbonmarketwatch.org
federica.dossi[at]carbonmarketwatch.org
benja.faecks[at]carbonmarketwatch.org
inigo.wyburd[at]carbonmarketwatch.org
isa.mulder[at]carbonmarketwatch.org
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