Earlier this week the Financial Times reported that a task force on global carbon markets organized by UN secretary-general António Guterres opposes the use of carbon credits for offseting company emissions.
The FT gained access to a draft document from the task force which said: “Carbon credits used cannot be counted as their [polluters’] own emission reductions” when purchased in voluntary markets outside of government-regulated schemes in which companies can trade permits giving them the right to pollute.”
The task force, which works under the secretary-general’s climate action team consulted with multiple agencies in forming its position, including the UN Framework Convention on Climate Change, the organization that coordinates global climate efforts.
Mixed signals
While these criticisms are in sync with a wave of scrutiny and investigations into malpractices, the UN is still working on developing a carbon market. Article 6 of the Paris Agreement aims to create a UN-sanctioned carbon market that sets global standards and helps global efforts to reduce emissions while providing financial incentives to preserve forests and biodiversity.
More specifically Article 6.4 of the Paris Agreement established a new international carbon crediting mechanism, also refered to as the Paris Agreement Crediting Mechanism. It has its own Supervisory Body tasked with developing and supervising the requirements and processes needed to operationalize the mechanism.
Relevant: The UN Supervisory Body Pushes Up Works On Implementation Of Carbon Crediting Mechanism
Work on this initiative continues, despite some setbacks at COP28 and the proliferation of national and regional carbon markets.
Google to focus on carbon removal credits
Some companies have already decided to shift their focus when it comes to credits that compensate their emissions. Chief among them is Google, who recently announced they will no longer purchase credits from reforestation, afforestation and other nature-based approaches.
This however doesn’t mean that they will stop the use of all types of carbon credits.
In a sign of the growth potential of the carbon removal industry (which relies on engineered or combined engineering with natural processes), the search giant announced it will redirect its purchasing power to that particular market.
This is in line with industry expectations of growing demand with supply having some catching up to do.
