Digital Protection Foundation

It’s not Bitcoin, Ethereum, XRP, or even Dogecoin, it’s not on the blockchain at all. Its carbon credits. So what are carbon credits and how do I get in on this action?

You don’t. It’s not really a currency with any defined denomination, regulations, or system, but it works the same as most currencies. It can be bought, sold, and traded.

Here’s how it works in simple terms, large companies pledge a certain amount of real money to be used to “remove” a certain amount of CO2 from the atmosphere. They either pledge the amount to another company who “handles” it, or their own fund to “remove” the CO2.

For example, Apple committed $200 million to their fund with Goldman Sachs and HSBC in 2021, then doubled it to $400 million in 2024. Apple claims that this removes 1 million metric tons of CO2 every year. Slight problem, Apple just put 12.8 million tons into the atmosphere last year. They claim that they will be “carbon neutral” in 2030, meaning that the carbon credits will be equal to “offset” the true emissions they produce.

This market is so large that the European Union has its own trading market for companies to buy and sell carbon credits amongst each other. This market alone is worth nearly $100 billion US dollars.

Carbon credits have three major problems: transparency, effectiveness, and accountability.

Transparency

Carbon credits are traded like currency and do not face the same regulations that normal currency or even crypto currency does. Meaning that these private trading markets allows for speculative pricing and market manipulation. The price of one “carbon credit” doesn’t even exist because there are many markets ran by private companies that purchase these “credits” in large money deals. There are no standards.

Effectiveness

Their effectiveness at actually removing CO2 is difficult to measure and verify, with true results being obscured by using vague language that only broadly addresses the main point. The Guardian claimed that the credits issued by carbon creditor Verra were only 10% effective. The reports goes onto claim that 90% of the issued credits have to real effect on climate change.

Accountability

Companies have used carbon credits to buy their way out of the destruction they do to the environment. Instead of actually spending the research and development into how to effectively reduce their environmental impact by changing formulas, improving delivery methods, and using suitable plastic replacements, they would rather spend the money to look “carbon neutral” while they spit out billion of CO2 every year. dump thousands of unknown and unaccounted for toxins, and produce millions in consumer waste.

The only reason companies haven’t gone “carbon neutral” yet is because these “credits” are extremely expensive, so they will set a far-out date like 2040 or 2050. Waiting until they can completely buy themselves out of environmental scrutiny.