Carbon markets were high on the agenda with the leading integrity focused organizations announcing a joint collaboration to enhance market wide trust and transparency.

The United Nations Climate Change Conference, COP28, kicked off in Dubai on November 30th, marking a key moment in global efforts to combat climate change. With over 60,000 participants, the summit is set to influence the trajectory of climate action worldwide. That is If it can overcome the controversy and purported conflicts of interest. 

COP28 began with a sense of urgency, emphasizing the critical need for climate action now. The United Kingdom’s King Charles delivered a poignant speech that highlighted the interconnectedness of nature’s balance with humanity’s survival. 

He told conference party members: “Unless we rapidly restore and repair nature’s unique economy based on harmony and balance, which is our ultimate sustainer, our own economy and survivability will be in peril. We are carrying out a vast, frightening experiment, changing every ecological condition, all at once, at a pace that far outstrips nature’s ability to cope.” His focus on biodiversity demonstrated a profound understanding of the far-reaching consequences of global warming.

Carbon offsets reduce emissions from resource consumption, shrinking your carbon footprint and benefiting the environment.

The UNFCCC defines carbon offsetting as a practice that enables both companies and individuals to “to compensate for the emissions they cannot avoid by supporting worthy projects that reduce emissions somewhere else.” To put it simply, carbon offsetting represents a proactive approach taken by organizations to voluntarily decrease, eliminate, or prevent the release of CO2 and other greenhouse gas emissions.

Carbon offsetting allows companies to compensate for their hard-to-abate greenhouse gas emissions, these are emissions that remain after reduction efforts, to balance out their carbon footprints. Companies can neutralize their remaining emissions by funding carbon offset projects around the world that reduce, remove, or prevent the release of GHGs into the atmosphere.

In this article, we explore the benefits of carbon offsetting and learn more about the methodologies used to calculate these offsets. We’ll also guide you on how to filter through projects and make carbon-neutral claims using carbon credits from the ClimateTrade Marketplace. 

The voluntary carbon market could be one of the most critical tools in the fight against climate change. However, it has faced several challenges and a lack of trust in recent years. 

The voluntary carbon market helps to direct finance to emissions reduction and removal projects that otherwise would not receive financial support. While supporting global environmental projects should be considered a positive move, the industry has faced widespread criticism and public scrutiny. It is true that there have been cases of low quality carbon credits or companies greenwashing by emitting high volumes of emissions, these scenarios are few and far between. Most companies purchase carbon credits as a way to make a positive impact on the planet, in addition to their overall sustainability objectives.

A recent statement by Verra, a nonprofit organization operating within the VCM, pointed out that it is a voluntary market, so those companies and individuals purchasing credits are doing so not because they have to by law, but because they want to support climate efforts. They said: “the VCM is voluntary, which means that none of the resources expended in it are required by law or mandate. This is why the market has grown while the world has waited desperately for mandatory climate action: because it lets companies do something today.”

It is clear that we must urgently restore trust in the market, ensuring that carbon credits are delivering high-quality emissions reductions and removals.

Carbon credits are playing a pivotal role in helping companies bridge the gap on their journey towards achieving carbon neutrality.

Historically, achieving carbon neutrality has proven to be a challenge for organizations looking to reduce their overall impact on the environment. For large multinationals with complex supply chains, overseeing sustainable practices end-to-end was seemingly impossible. 

However, as the devastating impacts of climate change have become increasingly apparent, there has been a notable shift in perspective. Companies now recognize that despite the obstacles they have previously faced they must utilize the most innovative tools and technologies to try and reduce their carbon footprint and environmental impact. 

When consumers are asked if they care about buying environmentally and ethically sustainable products and services they overwhelmingly answer yes: in a 2020 McKinsey US consumer sentiment survey, more than 60 percent of respondents said they’d pay more for a sustainable product. 

What Does it Mean to be Carbon Neutral? 

A company or product is considered carbon neutral when it takes steps to reduce and offset its greenhouse gas emissions to the extent that its net carbon emissions equal zero. This means that the company is effectively balancing the amount of carbon dioxide (CO2) and other greenhouse gasses it emits into the atmosphere with an equivalent amount of emissions it either avoids or offsets.

What are Carbon Credits? 

Carbon credits provide organizations with a valuable mechanism to offset their unavoidable emissions by investing in carbon reduction projects elsewhere. 

When organizations purchase carbon credits they can balance out their emissions, effectively neutralizing their carbon footprint. This approach not only demonstrates a commitment to environmental responsibility but also contributes to the global effort to combat climate change. 

While carbon credits are not a silver bullet and should complement broader sustainability efforts, they offer a practical solution for organizations striving to make a meaningful impact on the environment while working towards their carbon neutrality goals.

How Can Carbon Credits Contribute to Carbon Neutrality?

At the launch of the Apple Watch Series 9, amidst the buzz surrounding its enhanced features and stylish bands, Apple had a groundbreaking announcement to make – the Series 9 Watch is the company’s first carbon-neutral product.

Through the use of clean energy, purchasing renewable power on behalf of customers championing recycled materials and using sustainable packaging, apple took a fully comprehensive approach to consider all of the ways they could reduce their impact and were able to achieve a remarkable 78% reduction in the watch’s carbon footprint. But what about the rest? 

While Apple’s efforts have drastically reduced the carbon footprint of the Apple Watch Series 9, they acknowledge that achieving absolute carbon neutrality requires further steps. To eliminate the remaining emissions, Apple plans to buy offsets in the form of carbon credits from forest and wetland conservation projects. This strategy ensures that any emissions generated during the watch’s lifecycle are counterbalanced by investments in activities that sequester or prevent an equivalent amount of carbon dioxide from entering the atmosphere.

How to Avoid Greenwashing in Product Claims 

If you are going to claim your product is carbon neutral, you had better have the data to back it up. While carbon credits offer a promising tool for achieving carbon neutrality, it’s crucial to ensure the credibility of the credits and the projects they support. By following the points below, you can make a positive difference with your contribution: 

-Certification Standards: Choose credits that adhere to reputable standards like VCS or the Gold Standard. These standards ensure transparency, additionality, and environmental integrity.

-Project Verification: Verify that the emission reduction projects are regularly monitored and validated by third-party auditors to ensure they deliver the promised reductions.

-Avoiding Double Counting: Ensure that the same emission reduction is not claimed by multiple parties. Transparent accounting and reporting are vital.

-Long-Term Commitment: To make a genuine carbon-neutral claim, consider long-term commitments to offset emissions rather than one-time actions.

-Impact Assessment: Assess the overall environmental and social impact of the projects you support through carbon credits.

How to Purchase Carbon Credits

ClimateTrade provides a transparent and accessible platform to take meaningful action in the fight against climate change, making it easy for individuals and businesses to invest in a more sustainable future.

Purchasing carbon credits with ClimateTrade is straightforward. 

-First, visit the ClimateTrade website and create an account if you don’t already have one. 

-Next, log-in and navigate to the climate action marketplace where you can browse through various projects that align with your sustainability goals. These projects might include reforestation, renewable energy, or methane capture initiatives. 

-Once you’ve chosen a project or multiple projects you wish to support, select the desired quantity of carbon credits and add them to your cart. 

-Review your selections, and proceed to checkout. 

-During the checkout process, you can choose your preferred payment method, which typically includes credit cards and other online payment options. 

-After completing your purchase, you will receive a certificate confirming your contribution to reducing carbon emissions. 

At ClimateTrade we utilize blockchain technology to build trust and transparency in the voluntary carbon market.

By recording each carbon credit transaction on an immutable and decentralized ledger, we ensure that all information related to the creation, sale, and retirement of carbon credits is transparent. This not only reduces the risk of double-counting but also provides stakeholders with a verifiable, real-time record of carbon credit transactions. 

Carbon credits provide a practical and effective means for organizations to offset their emissions and work towards carbon neutrality. By adhering to certification standards, ensuring project transparency, and adopting long-term commitments, companies can avoid greenwashing and make genuine contributions to the global effort to combat climate change.