Integrity problem of carbon credits overhyped, say market players

TAKE a chill pill on carbon credits’ integrity issues. That was a common theme among several carbon market participants that emerged over a two-day conference.

Skepticism over the quality of carbon credits purchased to offset emissions has become so loud that it has kept buyers on the sidelines and dampened demand, resulting in lower trading activity at a time when confidence and trust need to be built in a nascent and growing market, they said.

The environmental integrity problem has plagued both compliance and voluntary carbon markets since its inception. A valid concern among critics is whether credits produced and bought actually result in the actual reduction or avoidance of greenhouse gas emissions. Otherwise, it is just greenwashing.