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He pioneered carbon offsets to save tropical forests. Now the market is collapsing

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Mike Korchinsky, founder of Wildlife Works, is striving to preserve his business and the broader carbon credit industry amidst growing skepticism and a market downturn
• Carbon credits have been a vital tool in channeling private funds to climate-positive initiatives, but their effectiveness and transparency are now under scrutiny

🔭 The context: Carbon credits have faced criticism for their alleged inability to significantly contribute to climate change mitigation, with accusations that they allow companies to avoid direct emission reductions
• The industry has seen a decline in credit sales and prices in 2023, prompting a need for reform and restoration of trust

🌍 Why it matters for the planet: Carbon credits play a crucial role in financing projects that aim to reduce global warming emissions
• Korchinsky’s Wildlife Works generates credits from conservation efforts in Kenya and the Democratic Republic of Congo, contributing to forest protection and biodiversity, but the current crisis in the carbon credit market threatens these and similar climate initiatives

⏭️ What's next: Korchinsky is working on establishing a new standard for conservation projects, which controversially proposes eliminating the concept of offsets, with this move he aims to rebuild trust in the market, though it raises questions about the future demand for credits without the offset component
• The voluntary carbon market, despite its challenges, has seen significant growth in recent years, with potential for further expansion if trust and integrity can be restored

💬 One quote: “If the carbon market fails, we squander the best opportunity we ever had for driving corporate finance to protect forests” (Mike Korchinsky, founder of Wildlife Works)

📈 One stat: The voluntary carbon market experienced its largest years in 2021 and 2022, with around $2 billion in transactions each year

Click for more news covering the latest on carbon

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