Hopetoun Falls, Australia 

What are carbon credits?

 

Forests are our greatest natural ally in the fight against climate change, yet in many places they are more valuable dead than alive.

Conservation International is working to flip the script by valuing the carbon that trees remove from the atmosphere and store in their trunks and soils. Through carbon projects, we help to protect the climate by protecting forests — and the people who depend on them. As one solution to the climate crisis, forest-carbon projects are helping humanity bend the climate curve.

 

What is a carbon credit?

A carbon credit represents a reduction of 1 metric ton in greenhouse gas emissions to compensate for 1 metric ton of emissions made somewhere else. A credit can be bought, sold or traded before it is “retired,” meaning it cannot be traded again, assuring that only the buyer can claim emissions cuts associated with that credit.

What carbon credits are not

  • A license to pollute: Carbon credits are a “bridge” for emitters working to reduce their emissions, not a pass for business as usual. In fact, companies that invest in nature-based credits are leaders, not laggards: Three recent studies found that companies that bought voluntary carbon credits did more across the board to cut emissions than companies that did not.
  • A silver bullet: Carbon projects alone will not solve climate change — they are a vital way to flatten the carbon curve while the world transitions away from fossil fuels.
  • Doomed by technical challenges: Carbon projects have been implemented in various forms for more than two decades, passing from the experimental to the commonplace thanks to testing and scientific advancements. Over the past several years, science and technology have advanced to ensure that carbon projects are having their intended benefits.
  • A ‘land grab’: High-quality carbon projects are necessarily built on the free, prior and informed consent of local communities in the project area. These projects do not separate people from their lands, but rather are predicated upon strengthening and upholding their rights to their lands. 

 

What is a ‘carbon project’?

The idea behind a forest carbon project: pay people to not cut down their forests and restore ecosystems through the sale of “carbon credits.” Governments, companies and individuals can buy and trade credits to supplement the cuts made to their emissions, with revenue going to local communities as an incentive to keep forests standing or restore them. The result: Credit buyers compensate for a portion of their carbon footprint, and forests survive to absorb climate-warming carbon from the atmosphere while supporting local communities. Our carbon projects » 

 

What are the benefits of carbon projects?

Wildlife

Forests are home to countless species that exist nowhere else — including many plant species that are critical to medicine, and pollinators crucial for agriculture.

 

Water

Forests are powerhouses of the water cycle, contributing to rainfall, holding and filtering water — and providing flood control — for adjacent communities.

 

Food and jobs

Millions depend directly on the goods and services that forests provide, including those related to clean water, food security and jobs.

 

Sustainable development

Revenue from carbon projects funds social, educational and health programs in forest communities, and support sustainable and economically resilient jobs for millions.

 

Requirements for carbon projects

To be considered high-quality and successful, carbon projects must meet stringent criteria, including: 

  • Additionality: Emissions cuts would not have occurred without the carbon project investment. 
  • Permanence: Emissions reductions or removals represented by a carbon credit must endure for the long term. 
  • Leakage: Deforestation is not simply displaced from one area to another. 
  • Benefit-sharing: Beneficiary communities of carbon projects are equitably compensated.

 

How these requirements are being met

All forest carbon credits traded internationally are guided by United Nations requirements, including:

  • Baseline: A baseline against which deforestation, degradation, conservation and restoration are measured to ensure that emissions are being reduced or removed.
  • Monitoring: A monitoring system to measure forest-cover changes against the baseline to ensure additionality.
  • Safeguards: Adherence to social safeguards to ensure respect for Indigenous rights and the participation of local stakeholders, as well as environmental safeguards to mitigate the risk of forest loss.

 

What is ‘REDD+?’

Some carbon projects are designed under a framework called REDD+ — Reducing Emissions from Deforestation and forest Degradation — a UN-backed policy and incentives framework that enables countries to protect forests to achieve the emissions cuts required by the UN and the Paris Agreement. Read more about REDD+ »

 

Principles for Investments in Natural Climate Solutions

Nature is one of the most effective ways to stop climate breakdown, yet natural climate solutions receive less than 3 percent of all global climate funding. Conservation International’s Principles for Investments in Natural Climate Solutions guide our engagement with companies that are helping to protect ecosystems that store climate-warming carbon and keep it from the atmosphere. Read our six principles »

 

From our blog

On carbon offsets, Wirecutter story doesn’t cut it

© Joshua Bousel/Flickr Creative Commons. Yasuní National Park in Ecuador

When it comes to buying goods and gadgets, you could do worse than to follow recommendations from Wirecutter, The New York Times’ consumer-review website. 

The same can’t be said about their recent article, “We Wish Buying Carbon Offsets for Your Flight Helped. It Doesn’t.” In fact, their conclusion is bafflingly wrong: Paying to protect an area of forest to offset the climate footprint of your flight does in fact — demonstrably and verifiably — help.

Let’s look at Wirecutter’s two main claims.

A question of ‘permanence’

“In most cases, carbon offsets do not capture or reduce real emissions,” the author writes, “and they have a dismal record when it comes to actually averting future emissions.” 

Wirecutter backs up this claim by linking to a reference article from the website Carbon Offset Guide about “permanence,” a term that refers to the durability of a forest that has been protected for offsets. Permanence is a very real challenge — after all, why pay to protect a forest if it’s burned or cut down a few years later? 

But most offset programs address this risk explicitly. For example, if you wanted to buy a house but were concerned about fire risk, you wouldn’t not buy a house — you’d buy insurance. Offsets programs are no different. (The two most common “insurance” measures in forest carbon projects are explained here and here. Wirecutter must have missed that.) 

The Carbon Offset Guide article goes on: “Scientifically, anything less than a full guarantee against [the loss of a forest’s carbon] into the indefinite future is not ‘permanent.’ ”

There is no universal scientific consensus on this assertion — something that Wirecutter could have uncovered with a little more digging. In fact, a carbon project that lasts only 20 years — while not ideal — is still almost always better than not having done the project at all, many experts say.

“Even if you were to protect a forest for 15 or 20 years, and then deforestation resumed at the same pace — that is, ‘business as usual’ — or lower than it was before, that’s still a net climate benefit,” Conservation International climate scientist Bronson Griscom told Conservation News in 2021

In other words, for two decades, those trees still sequestered carbon where they otherwise would not have; more remote parts of the forest that would have become accessible as a result of deforestation would have instead stayed intact; and money would still have flowed into the rural communities responsible for managing the forest. 

That seems like a good thing. 

Next up: The cost of carbon

Wirecutter writes: “Even if the projects these offsets supported were effective, they are so inexpensive … that what you pay wouldn’t come close to negating your share of environmental damage caused by flying.”

By this logic, you shouldn’t bother making a small donation to a fund aimed at, say, curing cancer — on its own, your $10 gift won’t amount to much.

But even then, Wirecutter is right about this: The full cost of a ton of carbon, accounting for its equity-weighted “social cost,” which the author gamely attempts to calculate, is less than what an airline would suggest a consumer should pay. That’s not the passenger’s fault. 

Even so, paying something is literally better than nothing: The cumulative purchases of carbon credits — and the market signals that this demand generates for credits globally — can amount to real impacts on the ground: In 2021, it was estimated that the value of this voluntary marketplace grew to US$ 2 billion — a significant amount of money aimed at curbing greenhouse gas emissions. 

And this money funds real action on the ground. Emily Nyrop, a climate expert at Conservation International, recently wrote about the benefits of one such project:

Take, for example, Chyulu Hills, nestled within one of East Africa’s most storied landscapes. This once-lush region of Kenya has endured years of stubborn drought—at times, severe enough to kill 90 percent of livestock. As agricultural income evaporated, pressure mounted to cut down nearby forests. In 2017, Conservation International helped launch a credit-generating project in Chyulu Hills, carried out in partnership with local Maasai people. In just five years, the program has brought in millions of dollars — income that helped keep the community afloat when the pandemic devastated ecotourism. That revenue also funded salaries for 100 park rangers combating poaching; scholarships for 500 students, as well as new teachers and classrooms; clean water infrastructure; and beekeeping supplies and training for women traditionally excluded from the workforce.

Can anyone honestly say that forest-carbon offsets “don’t help”? 

What we can do

Should carbon cost more? Should people try to fly less? Should we keep improving the science and systems of carbon offsets? 

Yes.

But even if people stopped flying tomorrow, the climate would keep warming thanks to the continued destruction of nature. Forest-based carbon credits are but a small way — really, one of the only ways — that an individual can make an immediate dent in what is otherwise a systemic problem.

In other words, there are not very many ways that you as an individual can cut your carbon footprint; buying carbon credits is one. So if you could do it, and it made even a small difference, why wouldn’t you? Why does Wirecutter tell readers that a verifiably effective way to slow the destruction of nature is not worth trying? Why does Wirecutter seemingly place responsibility for a systemic problem on beleaguered airline passengers? We don’t know.

So what does Wirecutter say you can do? 

“Calculate the equity-weighted carbon cost of the flights you do take,” the author writes, “and if you can afford to, donate that amount to a good cause that you’ve vetted yourself.”

What about a “good cause” such as investing in the protection of nature to help local communities, wildlife and the climate at the same time? 

We love Wirecutter. We wish they had done a bit more research on this one.

Bruno Vander Velde is the managing director of content at Conservation International. Want to read more stories like this? Sign up for email updates. Also, please consider supporting our critical work.