· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below
🗞️ Driving the news: Carbon offsets have recently been under scrutiny for their legitimacy and efficacy, resulting in a credibility crisis for the market
• Issues surrounding verification mechanisms and a lack of trust have significantly impacted the market
🔭 The context: Many companies, including tech giant Apple, are championing their carbon-neutral products, but there's rising skepticism about the authenticity of such claims
• Notable instances, like a Guardian investigation revealing 90% of rainforest carbon offsets were worthless, and Delta Air Lines facing a lawsuit for questionable carbon offsetting programs, underline the problem
🌍 Why it matters for the planet: Genuine carbon offsets can contribute to combating climate change
• However, without stringent regulation, deceptive practices undermine these efforts, sow mistrust, and deter potential buyers, weakening the market's potential positive impact
⏭️ What's next: Regulatory bodies and governments are urged to treat this not merely as a marketing compliance issue but as a serious market that requires robust regulation similar to financial markets
• The need for a well-resourced oversight body is paramount to restore trust in carbon offsets
💬 One quote: "Imagine a world where third-party organisations took sole responsibility for auditing and verifying a company’s financial statements, with no official oversight or legal repercussions for foul play." (Lina Thomas and Martin Söndergaard, journalists)
📈 One stat: Carbon's price plummeted by 90%, with a 32% supply contraction of deforestation projects over two years, indicating the depth of the credibility crisis
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