6. Carbon Credits Demystified: How businesses can navigate the Wild West with Jordan Lypchuk
May 4, 2023
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Explore the distinctions between compliance and voluntary carbon markets, the impact of electric vehicles on emissions, and the importance of additionality in carbon credits. Learn about sourcing high-quality credits, strategic advice for businesses, and the risks of greenwashing in the market.
Carbon credits markets include compliance and voluntary, with different regulations and opportunities for businesses and individuals.
Creating carbon credits involves following specific protocols and methodologies determined by registries, emphasizing additionality and permanence for credibility.
Deep dives
Understanding Carbon Markets: Compliance vs. Voluntary
Carbon credits exist in two main markets: compliance and voluntary. Compliance markets are regulated by governments to control emissions, while voluntary markets allow businesses and individuals to purchase credits. The voluntary market is growing rapidly, projected to reach $50 billion by 2030, but faces challenges like lack of transparency and greenwashing.
Creation and Verification of Carbon Credits
To create a carbon credit, one must follow specific protocols and methodologies determined by registries like VARA or ACR. The process involves measuring and verifying emission reductions, with a focus on additionality and permanence. Different registries have varying standards, impacting the quality and value of the credits.
Decision-Making and Due Diligence in Carbon Credit Procurement
Companies interested in carbon credits often start at the leadership level, then involve sustainability teams or various departments like operations or finance. When seeking carbon credits, companies should consider the project type, registry standards, and due diligence processes. Reputation and transparency of partners and projects play a crucial role in ensuring the credibility and value of purchased credits.
Welcome to The Circular Future podcast, where we explore the world of sustainability and its impact on businesses. In this episode, we dive into the often confusing and misunderstood topic of carbon credits with our special guest, Jordan Lypchuk, Vice President, Business Development at Ziing. We discuss the differences between compliance and voluntary carbon markets, the role of registries and standards, and the potential for greenwashing. We also touch on the importance of electric vehicles and their role in reducing transportation emissions. Join us as we unpack Carbon Credits 101 and explore how these markets can help businesses and individuals take meaningful action toward a more sustainable future.
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