COP28: companies’ embrace of carbon credits puts to shame countries’ climate backsliding

illuminem summarizes for you the essential news of the day. Read the full piece on South China Morning Post or enjoy below:

🗞️ Driving the news: COP28's 'global stocktake' reveals no country is on track to meet the 1.5°C global warming limit, with a catastrophic 3°C rise this century
• Countries, particularly in the Global North, are backsliding on climate commitments, as seen in the UK's recent policy shifts

🔭 The context: The lack of government leadership on climate action has led to the private sector's increasing engagement in carbon offsetting through the voluntary carbon market
• This market enables companies to compensate for emissions they cannot eliminate, supporting projects that reduce or remove carbon emissions, usually in developing countries

🌍 Why it matters for the planet: Despite criticisms, companies using carbon offsets are found to decarbonize faster than those who don't
• The voluntary carbon market is growing, with a 50% increase in companies retiring credits in 2023 compared to 2022

⏭️ What's next: Asian countries, including Singapore, China, South Korea, and Japan, are innovating in carbon credit trading 
• To meet the 1.5°C target, an estimated additional $90 billion in finance for carbon credit projects is needed by 2030

💬 One quote: "Relying solely on governments in the rich countries of Europe and North America – who have shown willingness to stall and backslide at the first opportunity – is a path to climate purgatory." (Rich Gilmore, CEO of Carbon Growth Partners)

📈 One stat: Approximately two-thirds of companies retiring credits in 2023 increased their carbon offsetting compared to the previous year

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