{"id":63746,"date":"2024-05-30T10:24:55","date_gmt":"2024-05-30T17:24:55","guid":{"rendered":"https:\/\/energi.media\/?p=63746"},"modified":"2024-05-30T10:24:55","modified_gmt":"2024-05-30T17:24:55","slug":"can-carbon-offsets-actually-work-the-biden-administration-thinks-so","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\/","title":{"rendered":"Can carbon offsets actually work? The Biden administration thinks so."},"content":{"rendered":"<p><em>This article was published by <a href=\"https:\/\/grist.org\/regulation\/carbon-offsets-credits-voluntary-carbon-market-biden-administration\/\" target=\"_blank\" rel=\"noopener\">Grist<\/a> on May 29, 2024.<\/em><\/p>\n<p><em><strong>By <a href=\"https:\/\/grist.org\/author\/joseph-winters\/\" target=\"_blank\" rel=\"noopener\">Joseph Winters<\/a><\/strong><\/em><\/p>\n<p class=\"has-default-font-family\">On Tuesday, the Biden administration unveiled new guidelines on \u201c<a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2024\/05\/28\/fact-sheet-biden-harris-administration-announces-new-principles-for-high-integrity-voluntary-carbon-markets\/\" target=\"_blank\" rel=\"noopener noreferrer\">responsible participation<\/a>\u201d in the voluntary carbon market, or VCM \u2014 the system that allows companies to say they\u2019ve canceled out their greenhouse gas emissions through the purchase of carbon credits. Theoretically, every carbon credit a company buys represents one metric ton of CO2 that has been reduced or avoided through projects that wouldn\u2019t have happened without the funding \u2014 like tree-planting or the installation of wind turbines.<\/p>\n<p class=\"has-default-font-family\">The\u00a0<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2024\/05\/VCM-Joint-Policy-Statement-and-Principles.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">guidelines<\/a>, signed by President Joe Biden\u2019s top climate and economic advisers, as well as the secretaries of Treasury, Energy, and Agriculture, are intended to boost the market\u2019s credibility following a series of investigations that revealed numerous credits to be ineffective.<\/p>\n<p class=\"has-default-font-family\">One guideline calls for credits to meet \u201ccredible atmospheric integrity standards,\u201d and another says companies should complement offsetting with the reduction of their own carbon footprints. The guidelines also call for environmental justice safeguards to ensure that credit-generating activities \u2014 many of which are\u00a0<a href=\"https:\/\/climatesociety.climate.columbia.edu\/news\/carbon-offsets-new-form-neocolonialism\" target=\"_blank\" rel=\"noopener noreferrer\">in the Global South<\/a>\u00a0\u2014\u00a0do not harm local communities.<\/p>\n<p class=\"has-default-font-family\">For the most part, the 12-page document reflects existing guidance from informal overseers of the voluntary carbon market, including the Integrity Council for the Voluntary Carbon Market and the Voluntary Carbon Markets Integrity initiative. In this way, the guidance is a sort of endorsement of the work those nonprofit governance bodies have already been doing \u2014\u00a0and of carbon markets themselves.<\/p>\n<p class=\"has-default-font-family\">The new guidelines are intended to help address a crisis of confidence in carbon credits, many of which have been found by recent studies and investigations to be ineffective. Some credits come from renewable energy projects that\u00a0<a href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/news\/half-of-indian-wind-farm-carbon-offsets-went-to-projects-that-would-have-been-built-anyway-increasing-emissions-new-lse-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">would have been built anyway<\/a>, even without funding from the VCM. Others are generated by\u00a0<a href=\"https:\/\/www.theguardian.com\/environment\/2023\/jan\/18\/revealed-forest-carbon-offsets-biggest-provider-worthless-verra-aoe\" target=\"_blank\" rel=\"noopener noreferrer\">protecting natural ecosystems that were never under threat<\/a>. Still others are based on projects that store carbon in ways that are\u00a0<a href=\"https:\/\/carbonmarketwatch.org\/2023\/09\/25\/new-reports-reveal-why-carbon-removals-and-temporary-storage-hamper-effective-climate-action\/\" target=\"_blank\" rel=\"noopener noreferrer\">unlikely to last more than a few years<\/a>. Last year, the Commodity Futures Trading Commission \u2014\u00a0a federal regulator \u2014\u00a0<a href=\"https:\/\/grist.org\/regulation\/this-little-known-federal-regulator-could-crack-down-on-fraudulent-carbon-offsets\/\">created a new task force<\/a>\u00a0to address potentially widespread fraud and market manipulation within the VCM.<\/p>\n<div class=\"wp-block-in-article-recirc\">\n<p class=\"has-default-font-family\">According to a\u00a0<a href=\"https:\/\/www.weforum.org\/publications\/the-voluntary-carbon-market-climate-finance-at-an-inflection-point\/\" target=\"_blank\" rel=\"noopener noreferrer\">2022 analysis<\/a>\u00a0from the World Economic Forum, less than one-fourth of 137 global companies surveyed planned to use carbon credits to achieve their emissions reduction targets; 40 percent of them cited the risk of reputational damage.<\/p>\n<p class=\"has-default-font-family\">Some environmental groups hailed the Biden Administration\u2019s guidance as a way to add legitimacy to the voluntary carbon market. Amanda Leland, executive director of the nonprofit Environmental Defense Fund, said in a statement that the Biden administration\u2019s \u201cvote of confidence\u201d could help the VCM reach $1 trillion by 2050, implying that this growth would funnel money into green jobs and climate resilience in the developing world.<\/p>\n<p class=\"has-default-font-family\">The global VCM is currently valued at around\u00a0<a href=\"https:\/\/carbonherald.com\/bezero-voluntary-carbon-market-could-reach-3b-value-in-2024\/\" target=\"_blank\" rel=\"noopener noreferrer\">$2 billion<\/a>. It\u00a0<a href=\"https:\/\/www.ecosystemmarketplace.com\/articles\/todays-vcm-explained-in-three-figures\/\" target=\"_blank\" rel=\"noopener noreferrer\">grew rapidly<\/a>\u00a0in 2021 before declining in 2022 and 2023.<\/p>\n<p class=\"has-default-font-family\">Critics said the new rules fail to address more fundamental concerns about the effectiveness of carbon credits. Some VCM offset projects send only a small fraction of the funds they generate to the communities they\u2019re supposed to benefit, while the rest of the money gets\u00a0<a href=\"https:\/\/www.wsj.com\/world\/americas\/middlemen-snag-carbon-credit-cash-aimed-at-peruvian-amazon-11672321001?mod=article_inline\" target=\"_blank\" rel=\"noopener noreferrer\">gobbled up by traders, registries, investors, and other middlemen<\/a>. And for a\u00a0<a href=\"https:\/\/www.carbonbrief.org\/guest-post-why-co2-removal-is-not-equal-and-opposite-to-reducing-emissions\/\" target=\"_blank\" rel=\"noopener noreferrer\">number of reasons<\/a>, scientists say it\u2019s inaccurate to equate a ton of carbon stored in biological systems with a ton of carbon released from the burning of fossil fuels \u2014 yet this assumption undergirds the VCM.<\/p>\n<p class=\"has-default-font-family\">Proponents of carbon markets are still trying to \u201cfit the circle of climate science into the square of carbon accounting,\u201d Steve Suppan, a policy analyst for the nonprofit Institute for Agriculture and Trade Policy, told Grist.<\/p>\n<p class=\"has-default-font-family\">Peter Riggs, director of the nonprofit Pivot Point and a co-coordinator of the Climate Land Ambition and Rights Alliance, said the federal guidelines are more concerned with creating a smooth market environment than with the integrity of carbon credits.<\/p>\n<p class=\"has-default-font-family hang-punc-medium\">\u201cGenerating rules for secondary markets and the clearing of credits may help with carbon market liquidity,\u201d he told Grist. \u201cBut if the underlying accounting is still flawed, these moves just create systemic risk \u2014 in much the same way that credit default swaps did during the financial crisis.\u201d<\/p>\n<p class=\"has-default-font-family\">Instead of carbon markets, Riggs and others have advocated for a system of climate finance that allows countries, companies, and other polluters to support conservation and carbon-sequestering activities\u00a0<a href=\"https:\/\/grist.org\/international\/as-the-un-designs-a-new-carbon-market-experts-call-for-a-different-approach\/\">without claiming them as offsets<\/a>.<\/p>\n<\/div>\n<div><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>This article was published by Grist on May 29, 2024. By Joseph Winters On Tuesday, the Biden administration unveiled new guidelines on \u201cresponsible participation\u201d in the voluntary carbon market, or VCM \u2014 the system that <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/news\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\/\" title=\"Can carbon offsets actually work? The Biden administration thinks so.\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":63747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[109,548,80,14,606,598],"class_list":{"0":"post-63746","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-climate-change","9":"tag-emissions","10":"tag-environment","11":"tag-featured","12":"tag-industry","13":"tag-us"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>carbon offsets - Thoughtful Journalism About Energy&#039;s Future<\/title>\n<meta name=\"description\" content=\"On Tuesday, the Biden administration unveiled new carbon offsets guidelines on \u201cresponsible participation\u201d in the voluntary carbon market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"carbon offsets - Thoughtful Journalism About Energy&#039;s Future\" \/>\n<meta property=\"og:description\" content=\"On Tuesday, the Biden administration unveiled new carbon offsets guidelines on \u201cresponsible participation\u201d in the voluntary carbon market.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/energi.media\/news\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\/\" \/>\n<meta property=\"og:site_name\" content=\"Thoughtful Journalism About Energy&#039;s Future\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/energimedia\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-30T17:24:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/energi.media\/wp-content\/uploads\/2024\/05\/carbon-offsets-Christopher-MederFotolia-via-Britannica-1024x682.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"682\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Energi Staff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@EnergiMedia\" \/>\n<meta name=\"twitter:site\" content=\"@EnergiMedia\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Energi Staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/energi.media\\\/news\\\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/energi.media\\\/news\\\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\\\/\"},\"author\":{\"name\":\"Energi Staff\",\"@id\":\"https:\\\/\\\/energi.media\\\/#\\\/schema\\\/person\\\/07051d0cfb14da284c97fb8ff214caf7\"},\"headline\":\"Can carbon offsets actually work? 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Christopher Meder\/Fotolia photo via Britannica."},{"@type":"BreadcrumbList","@id":"https:\/\/energi.media\/news\/can-carbon-offsets-actually-work-the-biden-administration-thinks-so\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/energi.media\/"},{"@type":"ListItem","position":2,"name":"Can carbon offsets actually work? The Biden administration thinks so."}]},{"@type":"WebSite","@id":"https:\/\/energi.media\/#website","url":"https:\/\/energi.media\/","name":"Thoughtful Journalism About Energy&#039;s Future","description":"","publisher":{"@id":"https:\/\/energi.media\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/energi.media\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/energi.media\/#organization","name":"Energi Media","url":"https:\/\/energi.media\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/energi.media\/#\/schema\/logo\/image\/","url":"https:\/\/energi.media\/wp-content\/uploads\/2021\/06\/cropped-cropped-EnergiMedia-v3-logo-e1625024297484.png","contentUrl":"https:\/\/energi.media\/wp-content\/uploads\/2021\/06\/cropped-cropped-EnergiMedia-v3-logo-e1625024297484.png","width":302,"height":61,"caption":"Energi Media"},"image":{"@id":"https:\/\/energi.media\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/energimedia","https:\/\/x.com\/EnergiMedia","https:\/\/www.linkedin.com\/company\/energi-media","https:\/\/www.youtube.com\/@EnergiMedia"]},{"@type":"Person","@id":"https:\/\/energi.media\/#\/schema\/person\/07051d0cfb14da284c97fb8ff214caf7","name":"Energi Staff","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/8aab8747a56101912653d395e4d5b76c013eb58c9c0d846ee34f94382c2a3bbb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8aab8747a56101912653d395e4d5b76c013eb58c9c0d846ee34f94382c2a3bbb?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8aab8747a56101912653d395e4d5b76c013eb58c9c0d846ee34f94382c2a3bbb?s=96&d=mm&r=g","caption":"Energi Staff"},"url":"https:\/\/energi.media\/author\/aen-staff\/"}]}},"_links":{"self":[{"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/posts\/63746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/comments?post=63746"}],"version-history":[{"count":1,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/posts\/63746\/revisions"}],"predecessor-version":[{"id":63748,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/posts\/63746\/revisions\/63748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/media\/63747"}],"wp:attachment":[{"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/media?parent=63746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/categories?post=63746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/energi.media\/wp-json\/wp\/v2\/tags?post=63746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}