The government of US President Joe Biden is due to unveil on Tuesday “safeguards” intended to ensure that carbon credit markets actually reduce CO emissions2an important victory for the defenders of this controversial mechanism.
The Secretary of State of the Treasury, Janet Yellen, will present the first major guidelines from the American government for the markets of “high integrity” carbon credits, in order to strengthen confidence in this system described as greenwashing (greenwashing) by its detractors.
To move to a low-carbon economy, “we must use all the tools at our disposal — creatively, thoughtfully and on a large scale,” she must assert in front of senior officials including John Podesta, envoy of the American president for the climate.
“I think it’s essential to harness the power of markets and private capital. This involves in particular efforts aimed at developing high-integrity voluntary carbon credit markets,” Ms.me Yellen.
Carbon credits are financial instruments created to allow companies and countries to offset their greenhouse gas emissions.
One credit is in principle equivalent to one ton of CO2 absorbed thanks to a project aimed, for example, at avoiding deforestation or allowing the installation of renewable energies or carbon capture machines.
Greater transparency
This financial system is currently worth around $2 billion globally, but has recently come under heavy criticism after studies showed that the emissions reductions announced under these programs were often vastly overestimated or even simply non-existent.
Mme Yellen is expected to outline principles intended to emphasize integrity in three key areas: on the supply side, credits linked to real emissions reductions or removals; demand-side corporate responsibility prioritizing emissions reduction; and market integrity through greater transparency and reduced complexity.
The publication of these guidelines reflects the US government’s desire to support these controversial climate finance mechanisms.
Prominent advocates of carbon credit markets, including former US climate envoy John Kerry, argue that public financing alone is not enough to achieve the Paris agreement’s goal of limiting global warming to +1 .5 degrees Celsius compared to the pre-industrial era.
Controversial market
The Paris agreement, adopted in 2015, gives states the possibility of entering the carbon market to offset their greenhouse gas emissions by “buying” efforts made elsewhere.
These projects, including for example the production of renewable energies or actions to protect carbon-absorbing ecosystems such as forests or peatlands, are frequently carried out in developing countries. Critics of these projects argue that local populations may have been exploited or driven from their land under them.
In September, Kenyan President William Ruto praised Africa’s carbon sinks, calling them an “unprecedented economic goldmine” that could “absorb millions of tons of CO2 per year, which is expected to translate into billions of dollars.”
The United Nations special envoy for climate action and billionaire Michael Bloomberg welcomed in a press release these “measures which will help increase investment in projects that reduce emissions and help more businesses to grow while by reducing their carbon footprint.
Scientists believe that compensation should not be used as a license to continue polluting, given that emissions will have to fall by almost half during this decade if the objectives set in the fight against global warming can be achieved. climatic.
A recent global study showed that market-based approaches to forest protection, including carbon credits and zero-deforestation certification schemes, have largely failed to preserve forest areas or reduce poverty.
At the beginning of the month, the UN announced the establishment of a new procedure allowing populations living in territories affected by carbon credits to file appeals if they consider themselves wronged by them, to strengthen their protection facing this controversial market.