The idea in headlines such as that below, that carbon credits don't reduce emissions (from an article in the Wall Street Journal* article) only serves to make doubt the positive work credit programs can do.
Yes, it is the case that carbon credits are not likely to have an effect on the behavior and emissions of the major emitters. This is especially in comparison to the profits generated from the production of fossil fuels. It's likely that cheaper renewables will, in time, be more effective on reducing our dependence on fossil fuels than taxing those emissions.
The emissions we produce today pose a challenge. However, to fully appreciate the importance and value of carbon credits, it's important to look beyond the Income Statement. Instead, we should be looking at the Balance Sheet. The Carbon Debt we have in the long-term.
If Planet Earth had to maintain the Balancesheet, we listed as an asset in the Asset columns, we would be listed with our essential needs , such as physical security, food security, and water availability. And in our Long Team debt entries , we were able to see the accumulation of greenhouse gas, the extreme quantity of organic matter in soil depletion of our farms and the staggering amounts of degradation to the most efficient carbon storage areas the mangroves along our coast rapidly become apparent that our current problem is not connected with one season's emissions.
This is the reason I believe any headline that includes offsets of carbon or reductions in emissions is misleading. The problems that we're experiencing with climate change aren't only caused by carbon emissions. It can also be the result of years (centuries) of inefficient farming practices. Poor farming practices pose a serious threat, as is rampant deforestation and mangrove loss as well as a myriad of other crimes.
What is the extent and the severity of the damage? Half to 65 percent of the mangrove forests around the globe have gone extinct or degraded. In numerous places across the world, farmlands have lost up to 80 percent of their organic soil carbon content to the point that food security is in danger.
This is why we must move from the "triplebottom-line" to the current and accrued debts on our balance sheet. Instead of being an emission tax now, think of carbon credits as an adjustment item on the balance sheet. Credit (carbon) which can be used for the reduction of (carbon debt.
What can we do to reduce our delinquency?
It's not hard to discover the answer. Here's an illustration. Within the CarbonNation fund family we've created the CarbonNation BLUE fund that seeks to accomplish a simple but highly effective thing to restore and protect mangroves. Mangrove forests require significant investment to ensure they can grow. For instance the 15,000-hectare mangrove that needs to be replanted could require between USD2,500 to USD4,500 per hectare. Additionally, it will require three years of meticulous cultivation by the local communities.
Also, onshore fisheries need better alga-based filters so that the nitrogen/phosphorus waste is removed and the quality and yield of the products are improved.
After this period is over, the carbon credits are created. Carbon credits can be used to repay of principal , as also a return on investment to investors. This also includes the community as the principal beneficiaries of the investment in the first stage. What Click for more info are the advantages? The increase in mangrove coverage can result in a higher number of fish. Mangroves guard fish from predators. Mangroves are among the major sources of income for a lot of coastal communities.
A greater number of mangroves provides better protection from erosion of the coast as well as increasing sea levels. Mangroves are capable of storing carbon up to 50 times that of low-density forests, as most people know. Yes, the machines that extract carbon from air and then store it in the ground are futuristic. But mangroves do this for millions years and also provide us with food.
The fund has already secured significant financing and partnerships for this effort, but additional partners are invited to contact us.
*This article is well-written and thoroughly researched. My problem is its headline which is false and misleading. The headline is based on the article's text, and could have been changed or modified by the editor.