May 25, 2023 | AgFunder News |
The value of carbon credits generated by the forestry and agriculture sectors is being questioned due to concerns about measurement accuracy, inconsistent standards, and potential fraud. An investigation by The Guardian revealed that over $1 billion of carbon credits certified by leading platform Verra may be worthless, as they had little evidence of deforestation reduction and lacked climate benefits. The situation has prompted calls for increased integrity and regulation in the global carbon market. A panel of entrepreneurs at the Hack Summit discussed the state of carbon offsetting in the food and agriculture industry. They emphasized the need for consensus-based certifications involving multiple entities to ensure quality credits. The panelists also highlighted the importance of considering other environmental factors such as biodiversity and farmer livelihoods in carbon offsetting efforts. They discussed upcoming carbon offsetting regulations in Europe and the US and shared their wishlist for the future of carbon markets.