Uncovering the Truth Behind Carbon Credits and Corporate Claims

Carbon offsetting is a controversial tool used to reduce greenhouse gas emissions by way of “carbon credits.” Purchasing these carbon credits is meant to offset the carbon dioxide emitted by large companies. The credits are purchased through brokers, exchanges, or project developers. When making public relations statements, these companies tout their use of carbon credits as proof that they are carbon neutral or have net zero greenhouse gas emissions. 

However, journalists have the opportunity to find out whether claims of carbon neutrality are true when they delve deeper into research on the growing voluntary carbon market.  This market of trade in carbon credits has had its credibility within projects questioned and has operated virtually without regulation and transparency. Those critical of this market are concerned that major companies are merely using carbon credits to avoid reducing their emissions, not to help the environment.

The Voluntary Carbon Market is Expanding

In 2020, the voluntary carbon market was valued at around $2 billion, but it is projected to be worth $250 billion by 2050. The issue is that this market does not have concrete regulations or a centralized system for the evaluation of offsets. To validate the offsets provided, carbon “registries” verify the carbon offset projects through quantitative techniques. Although, the credibility of these methods is subject of much debate and media interest. There is minimal transparency in the pricing of individual offset credits. Market-determined offset values are influenced by various factors such as supply, demand, location, and type of offset.

For instance, in the Colombian Amazon, Delta involved an indigenous reservation in two separate carbon market projects when the reservation was only aware of one. In this case, Delta was “double counting” and one of the projects ended up facing legal challenges from a group of indigenous leaders in the territory of Pirá Paraná.

Where to Focus the Investigation and How to Find More Information

One aspect of carbon offsets that journalists can focus on is whether the communities in areas affected by them were engaged and included in the development of these projects. This is one of the biggest indications of how harmful these carbon offsets truly are. Journalists can also follow up with whether a particular offset will achieve the beneficial results that companies claim it will. Digging into details will be imperative because the anticipated benefits rely on intricate assumptions and models. This can be quite a complex topic to report on, so a collaborative approach might be necessary.

Depending on the country the journalist is in, information on projects may be released locally by individual governments or offset developers, though it might also be publicly announced by the corporations themselves. On the off chance a company is being fully transparent, details on carbon offsets can sometimes be found on their official websites, which might also offer documents about their climate change initiatives. Keep in mind that these initiatives might not be everything they seem though. Sometimes, these corporations promote the offsets to enhance their brand’s image, so a skeptical eye is warranted

One more way to retrieve information on carbon offsets and the use of carbon credits is to access legal documents, being on the lookout for lawsuits that challenge the legitimacy of offsets. Some registries that journalists can get started with include Verra’s Verified Carbon Standard, Gold Standard, Climate Action Reserve, and American Carbon Registry. Each registry maintains a public, searchable database with details on the offsets they have certified and the projects in progress.