The assertion made by headlines like the one below (from an article in the Wall Street Journal article*) the idea that carbon credits won't cut emissions - is just a way to undermine the positive work that carbon credits programs are capable of doing.
It's true that the effect of a small and mostly voluntary tax that is the same as carbon credits currently are - is not likely to have a large-scale effect on the behaviour of the majority of emitters, particularly when compared to the income that could be made from generating fossil fuels and emitting carbon. It is likely that more affordable renewable energy sources are likely to have a larger impact on decreasing our dependence of fossil fuels, than taxes.
Emissions today are a problem. But, to understand the importance and significance of carbon credits, it is important to look beyond the Income Statement. Instead it is better to look at our Balance Sheet. Particularly, our Long Term carbon debt.
If Planet Earth were to maintain a Balance Sheet, and we were asked to include in our Asset column, our most basic needs including food security, physical security, water supply and so on... and also in our long Team debt entries, we would list the amounts of greenhouse gases, the extreme level of soil organic carbon Click to find out more depletion in our agricultural lands and the staggering levels of degradation of our most efficient carbon storage zones - the coastal mangrove forests It is evident from any examination of the balance sheet that our current predicament is not the result of a single year's emissions: if the balance sheet of a business were to reflect this report, insolvency would be on the table.
So, any headline with carbon offsets can be misleading. Climate change's problems aren't just the result of carbon emission but are traceable back to decades (or even hundreds of years). Poor farming practices are a major problem as is widespread deforestation, mangrove loss and a host of other sins.
What is the extent and the severity of the extent and severity of the damage? Mangrove forests across the globe have been wiped out by between 50% and up to 65%. In many places around the globe, agricultural land has been able to lose up to 80 percent of their soil organic carbon to the point that food security could be in danger.
We must shift our thinking away from the "triple bottom line" and instead focus on the accrued credit on the balance sheet. And think of carbon credits as an "balance sheet adjustment item" relating to this total debt, rather than just a tax on our current emissions. A (carbon credit) is a credit that can be used in order to lower (carbon), debt.
What can we do to reduce this debt?
The answers are surprisingly simple Here's an example. Within the CarbonNation family of funds we've established a CarbonNation Blue fund, which aims to do one very simple but highly effective thing to restore and protect mangroves. To scale these mangrove forests, it takes massive funds. A 15,000-hectare area of forest is required to be replanted and the cost will be between USD2,500 to USD4,500 per ha. This is in addition to three years of diligent cultivation and support from local communities.
Additionally, onshore fisheries in the vicinity will need to be provided with better algae-based filtering methods so that the nitrogen and the phosphorus waste that is produced are filtered out, as well as the quality of the produce is improved.
When this time period is finished after which carbon credits are created. Carbon credits can be used to repay of the principal amount as well as a return of capital to investors. This includes the community, who are also principal beneficiaries of the investment at the beginning. In addition to these economic benefits, what's the benefit? A greater mangrove cover means more fish, which is a major source of income for many coastal communities.
Higher protection from rising waters and coastal erosion is achieved by having more mangroves. Mangroves are 50 times more efficient at carbon sequestration than low density forests, something that almost everyone is aware of. Yes, machines taking carbon out of the air and then storing it in the ground is modern, but mangroves have been taking care of millions of people of people, providing food for the community for many years.
The Fund has received substantial funding and partnerships for its efforts. More partners are welcome to connect.
The article has been thoroughly researched and written. The problem I have with it is its negative headline. This is based on text in the article and suggests it was altered or added by an editor.