February 5, 2023

Companies take a ‘yes and’ approach to carbon credits, the report says.

Most global businesses are looking to further reduce their carbon emissions while providing them with reliable carbon credits to offset the greenhouse gas emissions they cannot eliminate.

That’s the headline summary of an important new report from Conservation International. and the blue-chip company We Mean Business Coalition, titled “Corporate Minds on Climate Action: Today’s Minds.” major challenge and the will to find a way forward.”

The report found that 92 percent of business leaders viewed long-term carbon reduction as important, with 89 percent adding that responsible use of carbon credits was important to this strategy.

“Carbon credits are a proven tool for immediate emission reductions. “This study confirms that private buyers are focusing on high-quality credit. with a focus on transparency and accountability.”

100% of respondents said they have met or are working to meet their internal climate goals.

However, the survey also confirmed that business leaders are widely concerned about the reliability of some carbon offsets. More than a third of respondents said they were actively investing in the voluntary carbon market. More than half said it was a viable alternative to meeting climate targets, but 44 percent expressed fear that some carbon credit projects were guilty of greenwashing. A third said they faced challenges in assessing the quality of carbon credits, and 38 percent complained that lack of regulation and transparency hindered increasing investment in voluntary carbon markets.

The report surveys corporate climate action from business managers engaged in sustainability from more than 500 global organizations in the United States. United Kingdom and Europe

Businesses recognize the urgent need to reduce greenhouse gas emissions, with 79 percent of respondents seeing science targets as “critical” in enabling companies to meet climate targets. 100 percent of respondents said they have met or are working to meet their internal climate goals.

However, the survey also found that even organizations While many are willing to reduce emissions and help keep global temperatures below 1.5 degrees Celsius, they still face challenges in meeting carbon reduction targets.

More than 85 percent said they saw budget constraints Lack of consistency and collaboration across the organization and limitations in technology “Major Obstacles” in Reducing Emissions and Meeting Targets

As a result, many businesses are taking what the authors describe as a “yes and” approach by looking to invest in voluntary carbon markets alongside efforts to reduce emissions at source.

More than half (51%) of respondents said carbon credits would help them manage climate impacts this decade. as they work to reduce long-term direct emissions.

If 1,700 of the world’s most emitting companies offset only 10% of their emissions through investing in the carbon market It will be able to raise more than $1 trillion by 2030.

Nearly 90 percent of respondents viewed carbon credits as important for businesses to offset emissions they are yet to eliminate. or to balance remaining emissions.

María Mendiuce, chief executive officer of the We Mean Business Coalition, said she felt It’s “encouraging” to hear companies know they need to cut emissions and invest in nature beyond the value chain.

“There are now standards to ensure that investments in nature through carbon markets are impactful and responsible. We ask all companies to increase their efforts,” she added.

The carbon offset market remains controversial in some quarters. Campaigners warn that a lack of regulation and oversight means too many negative emissions projects fail to deliver the promised emissions savings. Activists have long warned that some businesses use investments in carbon credits to justify continued investment in polluting assets and activities.

Today’s report warns that addressing these long-standing concerns is critical to unlocking much-needed climate finance in negative emissions programs for the next decade and beyond.

g latest analysis According to the We Mean Business Alliance, if the 1,700 of the world’s most emitting companies offset just 10 percent of their emissions through investments in the carbon market It will be able to raise more than $1 trillion by 2030.

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