In January, it was revealed that as much as 90% of the carbon credits approved by one of the world's largest certifiers may be phantom, thus not representing actual carbon cuts in the atmosphere. While the scandal may have shocked some, it should be no surprise. Today's voluntary carbon markets are not designed to be fit for purpose.
<p><span>Standard Disclaimer</span></p>
<p><span>Thank you to the International Swaps and Derivatives Association (“ISDA”) for inviting me to speak at a forum on climate risk, environmental, social, and governance (“ESG”) issues, the role that derivatives play in these markets, and the market and regulatory environment.</span></p>
GENEVA In January, it was revealed that as much as 90 per cent of the carbon credits approved by one of the world’s largest certifiers may be phantom, thus not representing actual reductions of carbon in the atmosphere. While the scandal may have shocked some, it should be no surprise. Today’s voluntary carbon markets are not designed to be fit for purpose.