'?????????????????? ???????????? ???????????? ????????????????: ?????????????? ???????????????? ???? ?????????????? ?????' - some reflections....

?????????????????? ?????????????????? ????????????? : an The Integrity Council for the Voluntary Carbon Market (ICVCM) board member has just published a must read article in Forbes *. ?Given the prominence of #ICVCM (and Forbes) I must highlight a few areas of fundamental disagreement with the author, Dee MacLeod Lawrence , without questioning her unwavering commitment and dedication to a functioning ?carbon market, so well captured in the title of her article: “ ?????????????????? ???????????? ???????????? ????????????????: ?????????????? ???????????????? ???? ?????????????? ?????”.

So here comes my list of disagreements (emphasis added with bold):

1, “The?research** ?is clear: Host countries, companies, organizations and individuals that are leading on climate are stepping up their decarbonization efforts as well as mitigating carbon emissions in a variety of forms, with ???????? ???? ?????????? ???????????? ???????????? ?????????????? ?????? ???????????????? ???? ???????????? ?????????????? ???? ?????? ?????????????????? ???????????? ????????????.”

The report actually states that “Carbon credits represent a very small share of overall action: the analysis shows that the credits companies are buying represent on average just over 2% of their total emissions.”***. The cumulative, less than 1 bn tonnes CO2e abated by the VCM since the Paris Agreement is far less significant ?than reductions achieved through the mandatory / ?REGULATORY measures (emission trading & taxation) and improvements in-house & ?within supply-chains. We must accept that the VCM is complementary to corporate decarbonisation - mandatory and/or self-initiated #climateaction - and subsequently it will always have a limited role. ?Consequently, ?if mandatory action is insufficient for putting us on Paris aligned pathways, then the VCM will not be able to solve the climate crisis challenge. Moreover, responsible action within corporate entities and their value/supply chains shall further reduce emissions significantly, leaving most of the scope for VCM ?‘outside of value chain’ emissions, such as of the gargantuan challenge of clean cooking for 2.4 bn people. ?

2, “The problem I see is that there's currently ?? ?????????? ???????????? ???? ?????????????????????? ?????? ???????????????? ?????????????? ???? ?????? ?????????????? ?????????? ?????? ?????? ???????????????? ????????’?? ?????????????????????? ?????????????? ???????????? ?????? ????????’?? ??????. This has ???????????? ?????????????? ?????????????????????? ???? ?????? ???????????? ?????? ???? ?????????????? ???????? ???????????????????? ?????? ?????????????? ???????????? at a time when we need it most.”

I find this argument misguided: I can somewhat sympathize with those VCM incumbents who blame the lack of regulation for the inherent problems of the VCM (i.e. stronger regulations on mandatory emissions reductions / green claims & greenwashing / ?VAT so to avoid fraud etc). Putting the blame on those ?calling out the worst features / culprits – such as the infamous ?#Kariba project****- is unacceptable an counter-productive. It is very clear who are the responsibles for undermining the credibility of the VCM and carbon market instruments: those developing/validating/marketing/selling those peculiar projects that should have not entered the VCM at the first place.

3, “I believe that ?? ???????????? ???????????? ???????????????? ?????? ???????????????????? ?????? ?????????? ???????????? [ a reference to a comprehensive ?list of sectors/emitters] , and by investing in it, your NPO can make a tangible impact. ?????? ??????????????????????, ????????????, ????????????????, ?????????????? ?????? ???????????? ?????? ?????? ???? ?????????? ?????? ??????????????????. Still, ?????????????? ???? ???????????? because many academics and carbon experts have taken the view that these third-party verified and validated emission reductions must be overestimated.”

Former CPA Institute ?director Matt Orsagh put it***** wisely and bluntly about the broader sustainability/ESG context: ‘ ?????? ?????????????? ??????’?? ?????????? ????????’ - ?“ We want them [ governments ] ?to act with incentives and rules that help us save ourselves. If governments can pass laws that require us to wear our seatbelts, require us to have insurance, require us to send our children to school, and require us to do hundreds of other things that are good for society, we should ask them to require us to save ourselves.”

So, please stop fighting the academics / carbon experts and start advocating and lobby for mandatory regulations ( and avoid at all cost what for example the insurance industry****** is doing to undermine climate related regulations!)

4, “I think critics of the carbon market hope that by calling out problems with project accounting for specific projects, ?????? ?????????? ???????? ???????? ???????? ???????? ?? ????????????-?????????? ???????????????? ???? ??????????????. What they fail to realize is that without this source of financing, solving the crisis with government or philanthropy alone will be impossible.”

I do not think that any of the VCM critics believe that ‘ government or philanthropy’ should fund the transition of our unsustainable economic system. In fact, I suspect the opposite: the critics argue that businesses have to fully incorporate the externalities – from climate to biodiversity loss – and pick up the bill. Market-based solutions – mandatory emissions trading, taxation - ?and subsidises ?however may crowd-out ‘voluntary actions’. I suspect that in the World of the VCM critics there will simply be no need for VCM: it would be a compulsory rules-based (market) system what would keep the World within 1.5 degrees…. (IMHO: as those rules may never emerge, there will always be room for VCM, going above and beyond what is a mandatory requirement).

Let me conclude that I fully agree with the last line of the article: “ ???? ???????????? ??????’?? ???????? ????????????????—??????’?? ?????????? ????!”

I would love to hear your views - including ICVCM & VCMI members - as having a common position of the 4 above issues is likely to be prerequisite for progressing with project-based emission reductions & carbon removal.

+++ please join an unfolding discussions on what constitute a ‘good company’ and what they should/should not do from a #climate perspective, ?with “ Mark Trexler and Owen Hewlett -> https://bit.ly/3tZmzwq

?

* Forbes: https://bit.ly/3MunrQ1

** Ecosystem Marketplace?report, 2023 October reflections https://bit.ly/3M44AuS ?& the report *** itself: ?https://bit.ly/3LVZuRA ?

**** The New Yorker artilce by Heidi Blake : https://bit.ly/3ZWlQba? (including ?my praise ?for the #ICVCM / #CCP)

***** Matt Orsagh 's blog: https://bit.ly/48Pin2r

****** InfluenceMap insurance industry report : ?https://bit.ly/3sr9Yl8