Carbon Offsets: A Complex Solution

Carbon offsets are gaining popularity as a way for individuals and organizations to combat climate change. Companies sell these offsets, claiming they can cancel out emissions from wealthy countries by investing in carbon-sequestering projects in poorer regions.

Projects funded by carbon offsets include tree planting, preventing deforestation, and supporting renewable energy and landfill gas capture. Consumers pay a small amount of money, believing they are offsetting their carbon footprint and contributing to the fight against global warming.

However, concerns are rising about the effectiveness of carbon offsets. Some critics see them as a mere “license to pollute” that does little for the planet’s health. Economists investigated the reality behind carbon credits to understand what consumers get when they purchase them.

Al Dix, a retiree from Yorkshire, England, joined the carbon offset movement by paying $15 per month to the startup Ecologi. Through Ecologi, Dix receives updates on the projects his money supports, usually in the Global South. He believes it’s better to do something than nothing, even if carbon offsets are not a perfect solution.

The carbon offset market, valued at billions of dollars, has grown rapidly, becoming big business. However, recent revelations, such as misleading rainforest carbon credits, have raised doubts about the legitimacy of some schemes.

To track the journey of a carbon credit, the economists, Angus Chapman and Desné Masie, followed one purchased by Al Dix from Ecologi. The credit was sourced from Carbon Zero Kenya, a company that distributes cooking stoves in Kenyan villages to reduce emissions. The credits then go through a certification process by organizations like the Gold Standard Foundation in Geneva.

Critics argue that the complexity and lack of transparency in the carbon offset market make it difficult for consumers to understand the true impact of their investments. Despite its limitations, some experts still see carbon offsetting as a tool to support positive climate initiatives. However, carbon offsets alone cannot be the sole solution to the climate crisis.

–Re-reported from the article originally published in Vox