The market is not working. The price of a carbon offset is far too low
Save time by listening to our audio articles as you multitaskDemand for such carbon offsets is forecast to rocket over the next couple of decades, as businesses attempt to make good on their promises to reach net zero carbon emissions. Last year an estimated $1bn was spent on offsets. McKinsey, a consultancy, predicts that the size of the market could expand by a factor of 15 by 2030 and 100 by 2050.
Deforestation remains economically rational. Because a palm-oil plantation still captures around 170 tonnes of carbon dioxide per hectare, leaving the land uncultivated offsets only 112 tonnes. An offset price of $10 means that, if the accounting is done properly, selling offsets yields revenue of only $1,120—not enough to compensate for the potential loss of about $3,800 in annual sales of palm oil.
Another problem is that there are few internationally agreed rules for offsets. A report published earlier this month by Carbon Direct, a consultancy, said that “the voluntary carbon market largely consists of projects of questionable quality.” A surplus of older and less reliable offsets hangs over the market, depressing prices.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cost of living: 'There's days the kids eat and I don't''There are days the kids eat and I don't' As prices rise to a 40-year high, families struggle to make ends meet
Read more »
Sunday Times Rich List 2022: Sunaks join wealthy elite as UK billionaires swell to record levelRishi Sunak and Akshata Murty have made the Sunday Times Rich List for the first time. It comes as typical UK households come under increased financial pressure from inflation, which struck a 40-year-high of 9% in April. 📺 Sky 501 and YouTube
Read more »
Six things the Government is not doing to help Brits with cost of living crisisProfessor Richard Murphy says politicians are doing almost nothing to help people who are struggling because they believe the market can solve a problem better than anything the government can do
Read more »
Minister opens door to windfall tax on energy companiesA minister has opened the door to a windfall tax on energy companies to help fund further support for struggling families facing a cost of living crisis.
Read more »