Around a third of carbon credits fail new benchmark test

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🗞️ Driving the news: Around a third of existing carbon credits have failed to meet the criteria for the new Core Carbon Principle (CCP) standards set by the Integrity Council for the Voluntary Carbon Market (ICVCM)
• These standards aim to address integrity concerns in the voluntary carbon market. The failed credits were predominantly linked to renewable energy projects

🔭 The context: The voluntary carbon market allows companies to buy credits from projects like wind farms and reforestation to meet their carbon-cutting targets
• Demand for offsets has stalled due to doubts about their efficacy in reducing emissions
• The ICVCM's new standards evaluate the validity of these projects, particularly on the grounds of additionality

🌍 Why it matters for the planet: Ensuring the integrity of carbon credits is crucial for their effectiveness in reducing global emissions
• Projects that do not genuinely need revenue from carbon credits for viability undermine efforts to combat climate change
• Stricter standards aim to enhance the credibility and impact of carbon offsets

⏭️ What's next: Renewable energy projects can still participate in the voluntary carbon market, but they must meet the new standards
• Analysts predict that the failure to meet these standards could further decrease the price of renewable offsets
• The ICVCM continues to assess and refine methodologies to ensure market integrity

💬 One quote: “There are still places in the world where barriers to deployment mean projects could be additional,” said Amy Merrill, CEO of the ICVCM

📈 One stat: The price of renewable energy offsets fell by 69% last year to an average of $3.88 per metric ton

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