Barron's Live OPIS Energy Insights - How Carbon Credits Fit Into Net-Zero Promises
Apr 21, 2023
Bridget Hunsucker, OPIS Director of Global Carbon Markets and a leading expert on voluntary carbon markets, dives deep into the intricacies of carbon credits. She clarifies the role these credits play in corporate sustainability and net-zero commitments and tackles common confusions surrounding greenwashing. The conversation also highlights the expected growth of the carbon market while stressing the importance of investing in high-quality, accredited credits. Hunsucker emphasizes the need for transparency and standards to build trust in this evolving marketplace.
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Carbon Market Basics
- A carbon market is a trading system for carbon credits, each representing one metric ton of emissions.
- Companies buy credits to offset emissions they cannot directly reduce, while project developers create and sell these offsets.
Types of Offset Projects
- Besides forestry, carbon offset projects can include renewable energy initiatives like solar power.
- Nature-based solutions and removals, not just reductions, are key focus areas.
Carbon Market History
- The voluntary carbon market, while growing, has existed for decades and gained prominence after the 2015 Paris Agreement.
- Companies use it to kickstart their net-zero goals and offset hard-to-abate emissions.