background image

Why are businesses holding back on carbon offset purchases?

author image

By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Edie or enjoy below:

🗞️ Driving the news: A recent survey conducted by the We Mean Business Coalition (WMBC) revealed that only 20% of businesses not currently purchasing carbon credits would consider doing so
• The primary deterrents are concerns over the credibility of the carbon offset market and fears of not achieving promised carbon reductions, risking reputational damage, and failing to meet climate commitments

🔭 The context: The survey, involving business decision-makers from various sectors across 27 countries, highlights the hesitancy towards carbon offset purchases due to a lack of trust in the market's integrity
• Companies are calling for more stringent regulations and higher standards to potentially engage in carbon-offsetting practices

🌍 Why it matters for the planet: Carbon markets are seen as crucial for achieving global net-zero goals, but the current lack of confidence among businesses could hinder the mobilization of corporate climate finance
• Strengthening market integrity and transparency is essential to unlock further investments in climate action

⏭️ What's next: The development and adoption of a comprehensive integrity framework for carbon credits, as promised at COP28, could increase market participation
• This framework should include safeguards against the misuse of carbon credits and specify regulatory bodies for market oversight, potentially leading to a 10% increase in carbon credit spending among existing buyers within two years

💬 One quote: "It’s clear there’s broad consensus among business leaders that climate action is a strategic priority and carbon markets are an essential tool for delivering on global net-zero goals," - Luke Pritchard, WMBC’s deputy director of nature-based solutions.

📈 One stat: 78% of businesses not engaged in carbon offsetting would not consider entering the market under current conditions, indicating a significant opportunity to grow the market through increased confidence and regulatory improvements.

Click for more news covering the latest on sustainable business

Did you enjoy this illuminem voice? Support us by sharing this article!
author photo

About the author

illuminem's editorial team - providing you with concise summaries of the most important sustainability news of the day.

Follow us on Linkedin, Twitter​ & Instagram

Other illuminem Voices

Related Posts

You cannot miss it!

Weekly. Free. Your Top 10 Sustainability & Energy Posts.

You can unsubscribe at any time (read our privacy policy)