HomeCarbon CreditsCarbon Offsets Necessary, Need to be Ready for Growth

Carbon Offsets Necessary, Need to be Ready for Growth

In the race against climate change, companies and governments are searching for ways to reduce their carbon emissions. Yes, we need advances in technology so that there is no carbon, to begin with, but many industries are not quite there yet.

This is why the carbon offset industry is so important – and Karen Fang, Bank of America’s Head of Global Sustainable Finance, agrees.

According to Fang, carbon offsets are necessary for combating climate change, even though they may be imperfect. Because of this, the industry needs to grow fast since the demand is there.

The carbon offset industry is on track to reach $100 billion by 2030 (up from $300 million in 2018). Some believe it could even reach $22 trillion by 2050. The carbon marketplace has grown in popularity due to its ability to improve the environment and support socio-economic growth – a win for ESG initiatives.

Although the industry has great potential, critics have their concerns – many of which Fang agrees with. This is especially true when it comes to the lack of a standardized, global verification process.

Right now, the primary registries for carbon offsets are all non-profit, non-governmental organizations.

“I almost hope, maybe this is naïve, that they [leaders] could all come together with a unified form of standard recommendation,” Fang said. “Because the world needs it [offsets] and needs a lot of it and needs a lot of it really, really, fast.”

Put ever so simply, Fang said, “Planting a tree is better than not planting a tree. I don’t think anyone can argue with that, from a carbon perspective.” In other words, while the carbon market may not be perfect, it’s doing a lot of good.

With COP26 approaching, leaders have the opportunity to address critic concerns by placing their support behind a global standard. If they do, it will only help drive quality projects and strengthen the carbon offset industry.

The COP26 is scheduled to take place in Glasgow, Scotland, October 31 – November 12.

Most Popular
LATEST CARBON NEWS

From Wild Seaweed to High-Value Products and Carbon Credits

A wave of seaweed is covering the Caribbean coasts, killing wildlife while harming humans and tourism, but an innovative company is turning it into...

Ammonia: Carbon-Free Fuel for the Shipping Industry

Converting ammonia into hydrogen is an emission-free fuel to help decarbonize the heavy-duty and shipping transportation industry. The transportation industry is the biggest polluter in...

How The First Carbon Negative Nation of Bhutan Did It

As the world’s richest and largest emitting countries are struggling to reduce emissions, Bhutan became the first carbon negative nation. Fog-enshrouded temples nestled in mountainous...

Google’s Eco-Friendly Routing Comes to Europe

Google expanded its eco-friendly routing on its Google Maps to 40 countries across Europe. With Google Map’s eco-friendly routing, drivers can choose a route that’s...
CARBON INVESTOR EDUCATION

The 5 Top Carbon Offset Project Developers

Are you looking to directly reduce your carbon footprint or support projects that cut emissions elsewhere? Then carbon credits allow you to do either...

The Top 3 Private Carbon Companies to Watch Right Now

Right now, the carbon space is heating up. Dozens of companies are jumping into what’s fast becoming one of the hottest spaces to invest...

Carbon Insetting: The Target of Scope 3 Carbon Offset Accounting

Carbon offsets are a well-known sustainability concept so you most likely have heard of them. But there’s a relatively new sustainable supply chain term...

Tonne Year Accounting for Temporary Carbon Storage

You most likely know the climate benefits of storing carbon and removing gigatons of it from the atmosphere to limit climate change. But we also...