Verra’s stance echoes that of many large offset providers.
Verra argues corresponding adjustments could hinder climate finance to developing countries and create needlessly complex accounting systems. The world’s largest voluntary carbon standard by volume, Verra, recently announced that it will not require corresponding adjustments for carbon credit transactions that have happened after the Paris Agreement was signed. However, the industry hasn’t quite agreed on this proposed solution.
To be truly impactful, offsetting should always be additional to national climate targets for an increase in overall climate ambitions. In this way, emission reductions or removals will only be claimed once: For instance, in the case of corporate offsetting, only by the company making the compensation claim.Ĭorresponding adjustments would also mean that private climate action would go beyond what is already set in national policies. This means that these CO₂ reductions or removals will not contribute to the host country’s national climate targets. These are called “corresponding adjustments”.Ĭorresponding adjustments mean that the amount of CO₂ reductions or removals claimed by the offsetter through the purchase of carbon credits are deducted from the project host country’s national greenhouse gas inventory. The first option is to implement national registries of all voluntary carbon offset projects and deduct them from national greenhouse gas inventories and climate targets. Want to avoid double-counted offsetting projects? Get familiar with the Compensate Credit. So, what would these solutions look like? These are systemic solutions that require the cooperation of multiple different stakeholder groups. On the other hand, double counting can also disincentivize countries from implementing much needed climate action.Įither the so-called carbon inventories and reporting done by the host countries must be able to adjust to offsetters’ claims, or the offsetting claims must be adjusted. If a company claims to be carbon neutral through offsetting that is also counted into the project’s host country goals, as far as the climate is concerned, the company hasn’t actually done anything extra.
This is highly problematic, as two parties cannot claim credit for the same climate action. How does double counting happen?Īs absurd as it is, missing links between theory and practice have left room for double counting to happen quite often.Ĭommonly, the two claiming parties are an organization offsetting its emissions and the host country of the project trying to reach its nationally determined contribution (NDC), or climate target, under the Paris Agreement. In addition, a good carbon credit ensures that one tonne of CO₂ is actually reduced or removed from the atmosphere entirely because of the project.ĭouble counting refers to a situation where two parties claim the same carbon removal or emission reduction. Companies, nations, and individuals can invest in these projects directly or buy the credits. But what is it and why is it such a hot topic? Let’s get down to the basics.Įach tonne of CO₂ emissions reduced or removed from the atmosphere by an offsetting project creates one carbon credit. Get the information you need to continue the evolution of your organization at CPA Canada’s flagship conference.For anyone who has spent time looking into the flaws of offsetting, double counting is an issue that comes up time and again. 2023 will require businesses to remain resilient through turbulent times.
0 kommentar(er)
