A new study by Ecosystem Marketplace has confirmed the benefits of carbon credits in helping businesses reduce their CO2 emissions. According to the study, companies that purchase voluntary carbon credits are more likely to report lower gross emissions year-on-year compared to those not engaged in carbon markets.
This indicates that businesses actively participating in carbon markets are putting in more effort to reduce their carbon footprint. In addition, these companies are also found to invest more in emissions reductions, further supporting their commitment to environmental sustainability.
Carbon credits are widely recognized as a promising tool in addressing climate change and reducing carbon emissions. However, their credibility has been subject to criticism due to the lack of transparency and the absence of concrete evidence to support their effectiveness in reducing greenhouse gases.
The new study by Ecosystem Marketplace offers optimism in tackling climate change through the purchasing of carbon credits.
Relevant: New Patch Survey Finds Climate Knowledge Correlates To Greater Confidence In Carbon Credits
The findings reveal that companies participating in the voluntary carbon market are making more significant strides in reducing their own emissions compared to their peers. This indicates a higher level of commitment among these companies to tackle climate issues.
Furthermore, the study shows that voluntary carbon buyers are more likely to have targets specifically aimed at addressing climate change, and their targets are bolder and more ambitious. This demonstrates a greater sense of responsibility and urgency among these buyers.
Additionally, the research indicates an increase in demand for higher quality carbon credits, even at a higher price. This suggests that companies are willing to pay more to ensure the integrity of the supply-side.
The study analyzed various aspects, including voluntary carbon market transactions and corporate climate disclosures to the CDP. The report includes data from over 7,000 organizations, 590 institutional investor signatories, and more than 200 major purchasers, indicating widespread interest and potential for change.
Read more: Carbon Removal Market Could Reach $135 Billion – BCG Report
