Trust, but verify: creating a global market for carbon credits

By Dan Feldman, Barney Reynolds and Natalya Pilbeam (June 29, 2022, 5:08 p.m. EDT) — Industries that cannot easily decarbonize would like to be able to claim reductions in net greenhouse gas emissions by offsetting—creating or buying carbon credits.

Through offsetting, activities in one sector that reduce, absorb or avoid GHG emissions can be associated with GHG emissions elsewhere. Measurable GHG emissions from one set of activities can be balanced against measurable GHG reduction credits in another set of activities.

This may involve, for example, removing existing carbon from the atmosphere or avoiding emissions that would otherwise be released. Through this method, a company that issues…

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