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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: The U.S. government has introduced new rules to enhance the integrity of voluntary carbon credits, addressing concerns over the effectiveness of some high-profile offset projects
🔭 The context: Companies use voluntary carbon credits to offset their greenhouse gas emissions by funding projects like reforestation
• However, recent controversies have revealed that some projects fail to deliver promised emission reductions, leading to a decline in market confidence
🌍 Why it matters for the planet: Ensuring the credibility of carbon offsets is crucial for reducing greenhouse gas emissions and mobilizing private finance for climate solutions
• High-integrity carbon credits can support global efforts to meet climate targets
⏭️ What's next: The new principles include strict standards for real and measurable emission reductions, monitoring to avoid harm to local communities, and prioritizing corporate decarbonization before using credits
• The Energy Department will purchase credits from carbon removal projects, and the Agriculture Department will assist farmers and forest owners in identifying high-integrity programs
💬 One quote: "Voluntary carbon markets can help unlock the power of private markets to reduce emissions, but that can only happen if we address significant existing challenges," said Treasury Secretary Janet Yellen
📈 One stat: Voluntary carbon markets shrank for the first time in at least seven years last year
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