3 ways to restore confidence in carbon markets in 2024

lluminem summarizes for you the essential news of the day. Read the full piece on GreenBiz or enjoy below:

🗞️ Driving the news: Heading into 2024, carbon markets are showing potential for resurgence as effective tools in reducing greenhouse gas emissions, despite facing challenges in 2023 due to inflated impact claims and gaps in project design

🔭 The context: Recent developments and commitments signal a possible restoration of trust in these markets, crucial for coordinated global climate action
• Enhanced collaboration among governments, carbon registries, and standards bodies is seen as a positive step

🌍 Why it matters for the planet: Effective carbon markets are vital for achieving global net-zero emissions targets
• Restoring confidence in these markets could close the climate finance gap and accelerate emission reduction efforts

⏭️ What's next: Three key trends in 2024 may boost confidence in carbon markets: moving toward universal standards, increasing government oversight, and unlocking new financing methods
• These initiatives could provide the necessary assurance for high-quality carbon credit supply

💬 One quote: "A string of investigations in 2023 exposed inflated impact claims by carbon credit developers and gaps in project design, eroding trust in voluntary carbon markets" (Margaret Morales Director of Carbon for GreenBiz Group)

📈 One stat: Carbon removal projects face setup costs up to 75 percent of the project’s lifetime cost, leading many developers to opt for less expensive projects like forest conservation

Click for more news covering the latest on carbon