9. Carbon Markets Flashcards
What are the three requirements of reaching the 1.5 degrees target?
- Net zero emissions by 2050
- Negative emissions
- Each state makes annual NDCs
Why will we probably not stay with the 1.5 degrees target?
Not one country is doing enough
What are the three strategies to mix economy and carbon?
- Carbon tax
- Compliance markets / emission trading schemes
- Voluntary carbon market
How much is 1 carbon credit?
1 ton of CO2-e
How much of global emissions is covered by a carbon trading scheme?
23%
What are voluntary carbon markets?
Markets where companies use carbon credits to neutralize residual emissions to compensate during their transition.
Why do companies voluntarily buy carbon credits?
- They really believe in it
- Greenwashing
What are the two major verification and issuance bodies?
Verra and Gold Standard
Why will companies only buy voluntary carbon credits from the big issuance bodies?
Because these are science-backed and respected.
Where are most of the carbon credit projects located?
- Global South
- Asia
Name 2 characteristics of the South African reforestation project.
- Planting of native Spekboom
- Restoration of microclimate and soil conditions
- High biodiversity
- Carbon sequestration
Name one of the issues associated with the South African reforestation project.
- Leakage: herders have to relocate
How does Imperative ensure compliance in the South African reforestation project?
- Penalties for non-compliance
- Carbon insurance buffer from other projects
When is the most funding required for a natural reforestation project?
At the start
What are two difficulties associated with kelp algae sequestration?
- Scientifically complex
- Divers need to be hired for planting
- Difficult to monitor
