The suggestion made in headlines such the one below the carbon credits won't reduce emissions - just obscures the good work that carbon credit programs can do.
It is true that carbon credits are not likely to have an effect on the behaviour and emissions of major emitters. This is especially in contrast to the earnings that result from the manufacture of fossil fuels. It's likely that accessible renewable energy sources are likely to have a larger impact on reducing our dependence on fossil fuels than taxation.
The current emissions crisis is a concern However, in order to comprehend the significance of carbon credits it is necessary to look beyond the Income Statement - and start looking at the Balance Sheet. The focus should be on our Long Term Carbon Debit.
If Planet Earth were to maintain the Balance Sheet, we were asked to include on our Asset column our basic needs such as physical security, food security, availability of water, etc... and in our long Team entry for debt, the accumulated amounts of greenhouse gas and the extreme rate of soil organic carbon loss from our farmlands and the awe-inspiring degrading of our best carbon storage area - the coastal mangrove forests, it would be clear from any analysis of that balance sheet that our present predicament is not the result of a single year's emissions: if the balance sheet of a business were to reflect this sheet, insolvency would be on the table.
It is because of this that I believe any story that mentions carbon offsets or emission reductions is false. The challenges we're seeing in the context of climate change are not only carbon emissions. It's also decades (centuries). poor farming practices, massive deforestation, mangrove destruction and pollution are just some of the numerous sins that contribute to climate change.
What's the magnitude of the extent of the damage? 50% to 70% of the mangrove forests in the world have either disappeared or become significantly degraded. The vast majority of farmlands have lost upto 80 percent of their carbon content in soil, which has led to the food security of our planet being in danger.
We need to shift our focus away from the "triple bottom-line" and focus on accumulation of credit on the balance sheet. Think of carbon credits more of an item of balance sheet adjustments relating to total debt as opposed to a tax on the present emissions. Carbon credits are a (carbon credit) which can be used in order to reduce (carbon), debt.
What can be done to lower the amount of debt?
These are easy to answer. Here is an illustration. Within the CarbonNation fund family we've created a CarbonNation BLUE fund that seeks to do a very easy but extremely effective thing that is to protect and restore mangroves. In order to achieve the scale of mangroves, forests require substantial funds. A 15,000-hectare forest that must be replanted will cost between USD2,500-USD4,500 per ha. The investment is combined with three years of meticulous cultivation within the local community.
Additionally, the local onshore fisheries must be provided with better algae-based filtering methods so that nitrogen and phosphorus can be removed from the water and that the quality of produce improves.
When this time period is finished After this time, carbon credits are generated. These carbon credits could be used to repay of principal as also a return on investment to investors. This includes the community, which are the primary beneficiary of the investment in the first stage. These financial benefits aside, what are the upsides? A higher mangrove cover will yield more fish which is a significant source of income for coastal communities in many cases.
Greater protection against coastal erosion and rising waters is made possible by the presence of more mangroves. Mangroves are fifty times more efficient in carbon sequestration than low density forests, which nearly everybody is aware of. While carbon extraction machines from the air and underground storage are futuristic looking mangroves have been doing this for millions and years and still provide our bodies with food.
The Fund has received significant contributions and partnerships to support its work. Any interested partners are invited to connect.
*This article is actually very researched and well-written. My problem is the negative and slightly misleading tone of its headline and based on the text of the article, suggests that it might have Website link been added or modified by the editor rather than the journalist.