A new report from Carbon Market Watch reveals that there is truth to the scrutiny that intermediaries in the voluntary carbon markets have been subjected to.
Lately, there has been an increasing amount of criticism directed towards the carbon market middlemen, with accusations of profiteering and lack of transparency, among others.
The recent Carbon Market Watch report published yesterday proves this criticism to be largely true.
According to the organization’s investigation, some 90% of the reviewed carbon markets intermediaries do not openly share the fees they charge or their profit margins.
This incredible lack of transparency is unsettling, to say the least, due to the role that voluntary carbon markets are intended to play in funneling financing to climate projects.
Relevant: The Guardian Investigation Of Verra Carbon Offsets Claims More Than 90% Are “Worthless”
Climate profiteering, as it’s been called, casts a shadow of doubt over the entire concept of carbon markets and what they stand for.
Furthermore, it prevents the world from seeing clearly whether voluntary carbon markets are indeed delivering on their purpose to draw financing towards projects designed to battle climate change and it prevents anyone from understanding the true amount of financing that actually reaches these projects.
To help solve this immense problem, carbon credit buyers are called on to be more critical of the brokers and exchanges they choose to purchase carbon offsets from.
Asking more and better questions will help make informed decisions as to which marketplace or platform to choose.
Relevant: 50+ Organizations Sign An Open Letter To Advocate For High-Integrity Carbon Markets
And project owners, although they’ve so far been reluctant to do their part where financial transparency is involved, are also called on to make a change.
By disclosing the amount they earn from the carbon credits they generate, buyers can do the math and opt for intermediaries, who come closest to that amount.
That way project owners will naturally benefit from increased bargaining power with marketplaces and exchanges.
