Integrity-Free Carbon

Integrity-Free Carbon

Sean Weaver, Ekos

The carbon offsetting world seems to have three broad personalities. The first are those who do not care about the climate system but want to look like they are doing the right thing at minimum cost. The second are those who care about the climate system but are distrustful of markets and offsetting in general. The third are those who care about the climate system, and recognize the value of well-designed market-based-mechanisms for delivering efficient outcomes for both the environment and the economy. I count myself among the latter.

The recent controversy over the NZ Government allowing Russian “junk” carbon into the New Zealand Emissions Trading Scheme is something of an indicator that the Government sits in the first category. Junk tends to be cheap, and when you can buy Kyoto compliant carbon offsets for $0.20 each, one has to wonder about their pedigree.

Buyers unencumbered with the burden of a moral compass feasted on these cheap “get out of jail free” certificates and made a mockery of the NZETS in the process. But the responsibility lies with the Government, because it allowed this garbage to taint the national effort, as we laundered Russian corruption in a national climate financing scheme. It is appropriate that we have egg sliding down our national face. It is a disgrace, clear and simple.

Worse though, it is incredibly damaging to public confidence in market-based-mechanisms that (when designed with integrity) are an efficient way to lower and then cap the marginal cost of looking after the climate system.

As a producer of community-based, fair-trade-styled rainforest carbon in New Zealand and the Pacific Islands I have an interest in carbon markets. Just like people who work in Trade Aid stores have an interest in coffee markets. But carbon and coffee are not the problem. ‘Integrity-free’ products are the problem. So let’s get some integrity back into our carbon market so that we don’t throw out the baby with the Russian bathwater.

…ends

© Scoop Media