Taming the Carbon Credit Wild West

It’s time for California Ag Today. On the Ag Information Network, I am Haylie Shipp.

Have you taken a dive into the pool of carbon credit marketing? All it takes is a toe dip to realize it’s a western in the unregulated type way. There’s a lot going on and what feels like very few rules.

It is along this same vein that the Biden Administration released just this week new principles for “High-Integrity Voluntary Carbon Markets,” providing what it says are clear incentives and guardrails go ensure that this market drives ambitious and credible climate action and economic opportunity.

Here's a recap of the principles, summarized a bit:

1. Carbon credits and the activities that generate them should meet credible standards and represent real decarbonization.

2. Activities should avoid environmental and social harm.

3. Corporate buyers that use credits should prioritize measurable emissions reductions within their own chains.

4. Credit users should publicly disclose the nature of purchased and retired credits.

5. Public claims by credit users should accurately reflect the climate impact of retired credits.

6. Participants should contribute to efforts that improve market integrity.

7. Policymakers and participants should be efficient and seek to lower transaction costs.

Want more information? Head to https://shorturl.at/TBVX9 to get the full statement from the White House.