KUALA LUMPUR, June 12 (Bernama) -- An analysis of the state of quality in the voluntary carbon market gives early indications that the market is moving towards higher integrity, according to a report by carbon credit ratings platform, Calyx Global.
“We wanted to start tracking quality, recognising that the voluntary carbon market is starting to mature. The quicker we improve carbon credit quality and restore confidence, the more effective companies can be at addressing climate change,” said Calyx Global Co-founder, Donna Lee.
According to a statement, key findings in the report stated that the issuance of lowest-grade credits has dropped nearly 50 per cent as a proportion of total issued credits to date, this year.
In addition, quality updates related to improving the rules and requirements for credit generation have not yet made their way onto the active market.
Furthermore, while benefits “beyond carbon” are attractive to buyers, it is a search for higher greenhouse gas (GHG) integrity that is driving trends in the market today.
The report integrates data on market trends from Calyx Global’s ratings of over 500 carbon projects to provide unique insights on how efforts to improve market integrity are faring.
After widespread pressure and scrutiny from the media and academia, many market actors have moved to address issues with the quality of carbon credits, in which this report tracks the effectiveness of those efforts.
-- BERNAMA
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