The idea in headlines such as the one shown below, that carbon credits won’t cut emissions (from an article in the Wall Street Journal* article) just serves to doubt the good work that credit programs can do.
Yes, the effect of a small and mostly voluntary tax - which is what carbon credits currently are is not likely to have a large-scale effect on the actions of a lot of major emitters, particularly when compared to the income that could be made from generating fossil fuels and emitting carbon. It's likely that accessible renewable energy sources will ultimately have a bigger effect on reducing our dependence on fossil fuels than taxes.
Today's emissions are a problem However, in order to comprehend the significance of carbon credits we have to put aside the income Statement - and start looking at the Balance Sheet. The Carbon Debt we have in the long-term.
If Planet Earth had to maintain a Balancesheet and we were included as an asset in the Asset columns our basic needs , such as food security, physical security, and water availability. In our Long Team debt entries , we were able to see the accumulation of greenhouse gas, the extreme quantity of organic matter in soil removal of our farms and the staggering extents of the degrading of the get more info most efficient carbon storage areas - our coastal mangrove trees rapidly reveal that our present situation has nothing to do with one season's emissions.
Thus, any headline that includes carbon offsets is misleading. The climate change issues are not only due to carbon emissions but can be traced back to decades (or even centuries). Poor farming practices and mangrove removal pollution, as well as other sins are all part of the problem.
How extensive is the mangrove forest's damage? Around 50 to 65percent of the mangrove forests in the world are gone or have been destroyed. A lot of areas of the world's agricultural land have lost as much as 80% of the carbon in their soils, which has led to the security of food being at risk.
That's why we should change our perspective from to the "triple-bottom line" to the interest that is accrued on the balance sheets. Think of carbon credits more of an item of balance sheet adjustments relating to total debt as opposed to a tax on the present emissions. A (carbon) credit that could assist in the reduction of (carbon) debt.
How can we cut down our debt?
They are straightforward answers. Here's one example. Within the CarbonNation group of funds we've created a CarbonNation Blue fund, which aims to do one very simple but extremely effective thing that is to protect and restore mangroves. In order to scale up these mangrove forests, it takes substantial funds. A 15,000-hectare forest is required to be replanted and this investment will take between USD2,500 to USD4,500 per hectare. In addition, it will require three years of meticulous cultivation and support from local communities.
In addition, the local fisheries onshore must be improved with algae-based methods of filtering so that nitrogen and phosphorus can be eliminated from the waters and the produce is improved.
After the forest has matured and plants grow, carbon credits are generated. These carbon credits are used to repay the principal amount, as well as a return on investment to the investors. What are the benefits? A greater mangrove cover means more fish and is a major source of income for coastal communities in many cases.
More mangroves mean better protection from rising tides and coastal erosion. Most people are aware, mangroves have an increased carbon sequestration rate than low-density forests. Yes, machines that draw carbon from air and then store it in the ground look futuristic. But mangroves do this for thousands of years and provide us food.
The fund has already received substantial funding and partnerships for its work. Any interested partners are invited to contact us.
*This article has been very well written and researched. The problem I have with it is its negative headline. It is based on the text in the article, and suggests that it was added or changed by an editor.