Find out how to Spot Just right Carbon Credit
Businesses want to prove they’re helping, but journalists beware greenwashing. The business of carbon reduction requires savvy coverage of “good” versus “junk” carbon credits. And “green” projects can harm biodiversity.
by Hope Kahn, National Press Foundation
Four experts and journalists briefed NPF International Trade fellows on how environmental issues are playing out in Asian trade, how biodiversity and green energy conflict, and how to distinguish good carbon credits from greenwashing.
Know the difference between carbon markets: compliance and voluntary. The science suggests carbon reduction targets cannot be achieved without removing carbon dioxide from the air. “We think green financing can play a role,” said Genevieve Soh, head of platforms and ecosystems at Climate Impact X, a climate science and risk management group… But high-quality and transparent carbon markets are necessary. Compliance markets are created and regulated by mandatory national, regional or international carbon reduction regimes, whereas voluntary markets enable companies and individuals to purchase carbon offsets on a voluntary basis with no intended use for compliance purposes. But sometimes the markets interplay when a carbon tax is involved, according to Soh. Singapore recently announced it will be increasing its carbon tax, but will soon allow carbon credits to offset up to 5% of their taxable emissions.
Here’s how to report on high-quality, transparent carbon credits. An Australian professor recently created a furor by asserting that the carbon market was “largely a sham,” as most of the carbon credits approved did not represent real or new cuts in greenhouse gas emissions. “At this point, there is no one standard that everyone kind of abides by,” Soh said. However, there are organizations that articulate what a good carbon credit looks like and help journalists with environmental accountability reporting. For local regulations, specifically in Australia, the Australian Carbon Credit Units set out rules that can be used to judge whether the carbon reduction is good enough, Soh said. Within voluntary markets, the Integrity Council for the Voluntary Climate Market is an independent governance body that sets and enforces global threshold standards using science and expertise. And the third group to look at are industry-oriented organizations, such as the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation. Pay attention to the work that is coming out of the Voluntary Carbon Markets Integrity Initiative, Soh said it is helping “companies articulate what is a fair and good claim.”
Speakers:
Audrey Tan, Assistant News Editor & Science and Environment Correspondent, The
Straits Times
Lynette Cheah, Associate Professor, Engineering Systems, Singapore University of
Technology and Design
Genevieve Soh, Head of Platforms and Ecosystems, Climate Impact X
Melissa Low, Researcher, Centre for Nature-based Climate Solutions, National
University of Singapore
More takeaways, transcript and resources: https://nationalpress.org/topic/environment-trade-carbon-credits-asia/
National Press Foundation’s International Trade Fellowship in Singapore is sponsored by the Hinrich Foundation. NPF is solely responsible for the content.
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