| > But this fallacy has been repeatedly exposed. For one, the organisations that are supposed to certify that indeed enough tree-planting has taken place do not have the tools to verify that the declared emissions will definitely be absorbed. Another problem is that many offsetting activities do not actually offset anything. > A recent investigation into the world’s largest carbon standard found that 94 percent of its rainforest offset credits did not actually contribute to carbon reduction. When I looked at the offset market in the past, I realized that it was one of the few markets where both the buyer and seller are perfectly happy with fraud. - The buyer is motivated to seek the lowest cost offsets they can find. They're not paying for the cleanup - all they need is the offset document itself, often for legal purposes. - The seller is more than happy to take the buyer's money and spend it on looking like they're doing something. The rest is free margin. Neither side remotely cares about the underlying activity behind the offset, and neither side is really penalized if the underlying activity is fraudulent. In fact, both sides are actually better off if the whole thing is fraudulent! I can't think of many other markets where this dynamic exists. |
> I can't think of many other markets where this dynamic exists.
Recycling market is the same - UK government pays you to recycle plastic, £60 per tonne. You find someone in a 3rd world country that will take it off your hands for £30 per tonne, and pocket the difference. They give you a document saying the plastic was 'recycled' and dump it in the ocean.
The sums may be wrong, but you get the gist