Why are businesses holding back on carbon offset purchases?

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.

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