“The good news is that a 1.5-degree pathway is technically achievable. The bad news is that the math is daunting. Such a pathway would require dramatic emissions reductions over the next ten years—starting now.”

~ McKinsey

VERIFIABLE CARBON CREDITS

Organisations can offset their remaining emissions (carbon liabilities) by purchasing carbon credits from transparent and auditable ecological projects. These projects include initiatives such as tree planting, carbon sequestration, and renewable energy generation.

The Voluntary Carbon Market (VCM) allows companies and individuals to offset their carbon emissions by purchasing credits from projects that reduce or avoid greenhouse gas emissions. This supports the transition to a low-carbon economy and provides a financial incentive for organisations to reduce their emissions.

However, to avoid the risk of being accused of greenwashing after purchasing carbon credits that may later be deemed to have low integrity standards, many companies are opting for inaction as the safer option.

DLT AND BLOCKCHAIN BRING BACK TRUST

Blockchain-based carbon credits enhance market access and price transparency, enabling sustainability-focused investors to navigate the fragmented carbon market, which still largely relies on over-the-counter trades.

For these credits to be trustworthy, they must be verifiable and measurable, ensuring the claims made by the projects behind each carbon credit are credible. The lack of verification is a primary reason why corporations have begun to shy away from climate financing.