· 2 min read
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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