Trading Graphs on Computer Monitor

Carbon Trading

While global attention is focused on efforts to fight the coronavirus pandemic, climate change will remain a defining long-term challenge that requires policies to create sustainable economies.

Although the current pandemic is clearly slowing down new implementations and the overall credit prices, it is widely expected that the carbon trading market will continue its strong expansion.

Challenges-Climate Change

Supply Chain-Major Culprit of overall greenhouse gas emissions with Transport and Shipping
Greenhouse Gas emissions -4x Higher through supply chain

  • Calculating Carbon emissions is manual, not real time, error-prone and time-consuming

  • Tracking emissions is difficult. There’s no standard measurement protocol, and many measures are estimates. A lack of common standards leads to confusion. There’s also a big issue with “double counting” of carbon emissions, where multiple entities claim the same, single credit

  • There’s a lack of transparency. Often, self-reporting is relied upon with little or no independent verification. Consumers don’t have access to truly see what anyone company is doing or how they’re hurting — or helping — our planet.

There are carbon cheaters. Corruption in carbon trading markets abounds. “Carbon markets have
been infested by corruption and non-transparency,” writes Steffen Bohm in The Guardian

  • There are multiple markets. The overall carbon trading landscape is fragmented with various
    carbon markets around the world. There is little coordination between them, resulting in inefficiencies.

  • Carbon emissions trading can be complicated and incur high transaction costs. One critica
    problem with carbon markets is “transaction costs associated with complex mechanisms,” according to a report by the World Bank. As a result, some organizations that might otherwise, participate in the market are deterred because it’s simply too complicated or costly.

  • There are too many middlemen. The number of intermediaries involved in carbon trading is aclear indication of its complexity — and its unnecessarily high transaction costs. “Carbon markets have created a lot of income for consultants, carbon brokers and project developers, not to mention the validators, policymakers, NGO professionals and academics who have made a living from these markets,” Bohm, who is a professor of management and sustainability at Essex Business School, continues.

Drought

Drought

Climate Change

Extreme Storm

Extreme Storm

Climate Change

Tornado

Tornado

Climate Change

Polar Bears

Polar Bears

Climate Change

Industrial emissions

Industrial emissions

Climate Change

Climate Change

Climate Change

Climate Change