| ▲ | abdullahkhalids 3 days ago | |
> there's nothing special about carbon offsets that makes them entirely fraudulent The problem is that what gets exchanged in the marked is a certificate but the purpose of the market is to create a positive externality. This means the buyers and sellers don't have an inventive to be honest. The buyer of the carbon credits doesn't actually need the carbon to be captured. They just want a certificate for X credits, so they can emit elsewhere or get some other benefit. The seller doesn't actually need to capture the carbon. As long as they can make a convincing enough case to the buyer that they did capture the carbon, the buyer is happy to buy. This is unlike a typical market where the seller does have an incentive to fool the buyers into a buying a subpar product, but the buyer has a lot of economic incentive to actually not be fooled. | ||
| ▲ | nostrademons 3 days ago | parent | next [-] | |
There are 3rd-party enforcement mechanisms. It's not as simple as the seller saying "We don't pollute, trust us"; there are actual government inspectors and NGO delegates that go out, visit factories, and fine them if their actual emissions don't match the declared permits: https://ww2.arb.ca.gov/resources/documents/mrr-enforcement The bigger issue, as mentioned above, is that there's often a time lag between when the seller receives the money and when the seller can actually put it to use to reduce carbon emissions. One of the biggest sellers of carbon credits, for instance, is CA high-speed rail, which is decades away from completion. If it doesn't actually complete, it's not going to take any cars off the road or planes out of the sky, and so all the carbon credits it sold would just allow fossil fuel emitters to maintain status-quo emissions. But as a way of diverting private resources from CO2 emitters to greener alternatives, cap & trade has been pretty effective. Over half the cars in my Bay Area city are now EVs; Tesla was kept afloat for many years by selling carbon credits. | ||
| ▲ | Muromec 3 days ago | parent | prev [-] | |
This. Both parties in the market are in on the same scam to fool the end customer and shareholders | ||