The Voluntary Carbon Market has faced tough questions about how helpful carbon projects are in reducing emissions. This video explains some of the key issues at stake when thinking about the effectiveness of the VCM in contributing to carbon avoidance and removal.
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Some people perceive the VCM as greenwashing, which is a term that has been developed to describe when companies suggest they are reducing their environmental impact by investing in climate projects without actually reducing overall emissions.
Others doubt the ability of carbon projects to avoid or remove carbon from the air.
There is also the question of whether core principles of the VCM are always being respected.
Under the principle of additionality, for example, a carbon project can issue credits only if it is not already financially attractive or required by law. In some countries, renewable energy projects have become profitable, and would no longer be additional. Similarly, forestry conservation projects in areas where trees are already protected by law should not be the source of new credits.
Forestry projects can be exposed to wildfires or pests, which could undermine their ability to ensure a long-term drop in emissions, risking another core principle: permanence.
Most of these questions are still open and some initiatives such as the Science Based Targets Initiative or the Integrity Council for the Voluntary Carbon Market are attempting to give answers.