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illuminem summarizes for you the essential news of the day. Read the full piece on Grist or enjoy below:
🗞️ Driving the news: Developers are using the voluntary carbon market to fund the plugging of orphaned oil and gas wells, which leak toxic chemicals and methane
• Since 2023, approximately 5 million carbon credits, worth an estimated $10–$30 each, have been generated through such projects
• However, discrepancies in methane measurement and over-crediting risks cast doubt on the environmental benefits of these credits
🔭 The context: The U.S. has over 3 million orphaned wells, many abandoned by companies without remediation
• Carbon credit developers identify high-methane-emitting wells, plug them, and calculate avoided emissions to issue credits for corporate buyers
• Methodologies for calculating emissions reductions vary, with some projects criticized for overestimating leakage rates to maximize credits
🌍 Why it matters for the planet: Plugging orphaned wells mitigates methane emissions, a potent greenhouse gas with 80 times the warming potential of CO₂ over 20 years
• However, inaccuracies in credit calculations risk undermining corporate climate commitments and the credibility of carbon markets
• Ensuring accurate methodologies is critical for these projects to have genuine climate benefits
⏭️ What's next: Standard setters and developers must refine methodologies and improve verification processes to ensure credibility
• As the market matures, data-driven approaches may reduce over-crediting risks and boost transparency
• Stricter oversight is essential to prevent bad actors from exploiting the voluntary carbon market
💬 One quote: “There are a lot of hurdles that you have to get over in order for those [carbon] credits to be any good.” — Adam Peltz, Environmental Defense Fund
📈 One stat: Nearly 1.9 million credits were issued for a single project that plugged six wells in Oklahoma, raising concerns of over-crediting
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