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Buying carbon credits doesn’t discourage corporate decarbonisation, study finds

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By illuminem briefings

· 2 min read

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🗞️ Driving the news: A report published by Ecosystem Marketplace, led by the non-profit organization Forest Trends and based on CDP Climate Change data from 2022, reveals insights into corporate engagement with carbon markets (VCM)

🔭 The context: In 2022, 7,415 companies disclosed their activities to the CDP Climate Change program, primarily detailing their actions in 2021. and among these, 11% (822 companies) participated in voluntary project-based carbon credits as buyers or originators
• Additionally, 55 companies used project-based carbon credits for compliance purposes

🌍 Why it matters for the planet: The report highlights that companies engaged in carbon markets reported a more substantial decrease in gross emissions compared to those not participating
• It underscores the potential positive impact of carbon market involvement on emissions reduction efforts

⏭️ What's next: The research suggests that carbon credit buyers tend to prioritize supplier engagement strategies and science-based targets for addressing climate change
• It also underscores the importance of adopting a comprehensive greenhouse gas reduction strategy that goes beyond carbon credit acquisitions

💬 One quote: "In 2021, the average purchaser in the carbon market acquired credits equivalent to less than 2% of their overall emissions" (Sidhi Mittal, reporter)

📈 One stat: Carbon credit buyers are 3.4 times more likely to have approved science-based climate targets compared to companies not participating in carbon markets, highlighting their commitment to addressing climate change

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