The suggestion that carbon credits won’t lower emissions, as suggested by headlines like the one below (from an article in the Wall Street Journal article*) is only serving to obscure the amazing job carbon credit programs do.
Yes, it is possible that a small voluntary carbon tax (which is currently carbon credits) is unlikely to significantly alter the behavior large emitters. This is especially considering the profit margins from generating fossil fuels or emitting carbon. It's likely that using lower-cost renewable sources of energy will in time have a greater effect over the tax on carbon emissions.
The current emissions crisis is a serious issue. To appreciate the importance of carbon credits we need to go beyond looking at the income Statement and take a look at our Balance Sheet. And more specifically, our Long Term Carbon Debt.
If Planet Earth were to maintain a Balance Sheet, and we were required to record on our Asset column our basic needs such as physical security, food security, water supply etc... and then in our Long Team entry for debt, the accumulated amounts of greenhouse gases as well as the extreme levels of soil organic carbon loss from our farms and the awe-inspiring levels of degradation of the best carbon storage areas such as the mangrove forests along the coast It is evident from any reading of that balance sheet that our current situation is not the result of one year's emissions: if it were a balance statement, insolvency would surely be on the agenda.
That's why I think any article that talks about carbon offsets or emission losses is a lie. The problems with climate change that we are experiencing are not the result of carbon emissions. They have been affecting us for a long time. Mangrove removal pollution, as well as other sins are all part of the problem.
What is the extent and the severity of the destruction? About half to 65 percent of the mangrove forests in the world have disappeared or been significantly damaged. Numerous farms around the world have lost more than 80% soil organic carbon, threatening the security of food.
This is the reason why we must move from the "triplebottom-line" to the current and accrued debt on our balance sheet. Think of carbon credits as a "balancesheet adjustment item" to account for the total debt. They aren't just a tax today's emissions. Credits for carbon can be a (carbon) credit that could aid in reducing (carbon) debt.
What can we do to reduce the amount of debt?
These answers are quite simple. Here is an illustration. Within the CarbonNation fund family we've established the CarbonNation BLUE fund that seeks to do a very easy but highly effective thing: restore and protect mangroves. To build mangrove forests, they require massive funds. A forest of 15,000 hectares is required to be replanted and the cost will be between USD2,500 and USD4,500 per ha. In addition, it will require three years of careful cultivation and the support of local communities.
Additionally, the local onshore fisheries must be provided with better algae-based methods of filtering to ensure that phosphorus and nitrogen can be removed from the waters and the produce is improved.
After this time frame when the forest is mature and the algae plants come online carbon credits are generated that can be utilized to repay the principal and the investment's return to investors, which includes the community, who are the primary recipients of the first phase of investment. What are the advantages? Increased mangrove cover leads to greater fish. Mangroves are a breeding ground for fish and it provides an income source that is vital for numerous coastal communities.
Mangroves with greater numbers provide protection from rising tides and coastal erosion. In fact, as most people are aware already, mangroves can provide up to 50x better carbon sequestration than low-density forests. Although the machines that extract carbon from the air and store it in underground storage appear modern Mangroves have been doing the same since the beginning of time. They also provide food to us for the same time.
The fund has secured substantial financing and Find more information partnerships for these efforts, but more partners are invited to connect.
*This article is actually very researched and well-written. My problem is the negative and somewhat misleading tone of its headline, and based on the content of the article, I believe might have been added or modified by the editor, rather than the journalist.