• HOME
  • NEWS
  • EXPLORE
    • CAREER
      • Companies
      • Jobs
    • EVENTS
    • iGEM
      • News
      • Team
    • PHOTOS
    • VIDEO
    • WIKI
  • BLOG
  • COMMUNITY
    • FACEBOOK
    • INSTAGRAM
    • TWITTER
  • CONTACT US
Wednesday, May 31, 2023
BIOENGINEER.ORG
No Result
View All Result
  • Login
  • HOME
  • NEWS
  • EXPLORE
    • CAREER
      • Companies
      • Jobs
        • Lecturer
        • PhD Studentship
        • Postdoc
        • Research Assistant
    • EVENTS
    • iGEM
      • News
      • Team
    • PHOTOS
    • VIDEO
    • WIKI
  • BLOG
  • COMMUNITY
    • FACEBOOK
    • INSTAGRAM
    • TWITTER
  • CONTACT US
  • HOME
  • NEWS
  • EXPLORE
    • CAREER
      • Companies
      • Jobs
        • Lecturer
        • PhD Studentship
        • Postdoc
        • Research Assistant
    • EVENTS
    • iGEM
      • News
      • Team
    • PHOTOS
    • VIDEO
    • WIKI
  • BLOG
  • COMMUNITY
    • FACEBOOK
    • INSTAGRAM
    • TWITTER
  • CONTACT US
No Result
View All Result
Bioengineer.org
No Result
View All Result
Home NEWS Science News Chemistry

Ten-fold increase in carbon offset cost predicted

Bioengineer by Bioengineer
June 4, 2021
in Chemistry
Reading Time: 5 mins read
0
Share on FacebookShare on TwitterShare on LinkedinShare on RedditShare on Telegram

IMAGE

Credit: Trove Research

The cost of offsetting corporate carbon emissions needs to increase ten-fold to drive meaningful climate action, says a landmark report by Trove Research and UCL.

Current prices of carbon offsets are unsustainably low and need to increase significantly to encourage greater investment in new projects that remove carbon from the atmosphere.

If prices stay low companies could be accused of greenwashing their emissions, as real emissions reduction and carbon removals are more costly than today’s prices.

Prices of carbon credits used by companies to offset their emissions are currently low, due to an excess of supply built up over several years, together with issues over whether payments for credits really result in additional reductions in carbon emissions.

According to the research, titles Future Demand, Supply and Prices for Voluntary Carbon Credits – Keeping the Balance, without this surplus, prices would be around $15/tCO2e higher, compared to $3-5t/CO2e today.

The research shows, however, that the surplus will not last forever, with demand for carbon credits expected to increase five to ten-fold over the next decade as more companies adopt Net Zero climate commitments.

This growth in demand should see carbon credit prices rise to $20-50/tCO2e by 2030, as more investment is required in projects that take carbon out of the atmosphere in the long-term. These prices are needed, for example, to incentivise landowners to forgo income from agriculture and instead preserve forests and plant trees.

With a further increase in demand expected by 2040 and 2050, carbon credit prices would rise in excess of $50/tCO2e.

If governments successfully reduce emissions through domestic policies, fewer carbon credits will be available to businesses through the voluntary market. This would increase carbon credit prices further, potentially reaching $100/tCO2e.

If carbon credit prices remain significantly below these forecast levels, companies could be open to criticisms of greenwashing, claiming credit for emission reductions that would have been undertaken anyway.

The analysis also shows that the contribution of the voluntary market to reducing world emissions needs to be seen in perspective. Even at prices of $100/tCO2e the technologies assessed in this study (reducing deforestation, forest restoration, CCS, BECCs and renewables in least developed countries) could deliver around 2bn tCO2e per year of emission reductions on average between now and 2050.

This is about 4% of world greenhouse gas emissions, and 10% of the gap between global “business as usual” emissions in 2030 and pledges in the Paris Agreement by 2030, showing that the market for offsets will be modest compared to economy-wide emissions reductions needed to reach the Paris targets and net zero by 2050.

However, over the next decade the voluntary market will provide a valuable financing mechanism to support the protection of existing forests and restoring degraded habitats, providing immediate climate and biodiversity benefits while other technologies that can remove carbon from the atmosphere are scaled up.

Guy Turner, CEO of Trove Research and lead author of the study said “It is encouraging to see so many companies setting Net Zero and Carbon Neutral climate targets. What this new analysis shows is that these companies need to plan for substantially higher carbon credit prices and make informed trade-offs between reducing emissions internally and buying credits from outside the company’s value chain.”

Co-author of the study Professor Mark Maslin (UCL Geography) said: “Customers, clients, investors and employees all want companies to become more sustainable and achieve net zero carbon as soon as possible. Even with ambitious carbon reduction plans there are some company emissions that are currently unavoidable and this is where carbon offsetting is essential. But everyone wants a carbon credit system that is reliable and really does remove carbon from the atmosphere – what this groundbreaking report shows is that this will cost significantly more than companies are paying now.”

Co-author of the study Professor Simon Lewis (UCL Geography) said: “The current market in carbon credits is the wild-west, where too often anything goes. A clean-up and independent regulation is required, which will increase the price of carbon credits. This is because in reality it is costly to remove carbon dioxide from the atmosphere. Overall it will be cheaper in the long-run to invest in moving to zero emissions rather than relying on offsets. But for those emissions that remain, the true price of removing carbon from the atmosphere must be paid, as the alternative is greenwash.”

###

Future Demand, Supply and Prices for Voluntary Carbon Credits – Keeping the Balance will be published and available to download on the Trove Research website.

Notes to Editors

For more information or to speak to the researchers involved, please contact:

Jane Bolger, UCL Media Relations: T: +44 (0) 7990 675 947, E: [email protected]

Guy Turner, CEO Trove Research T: +44 7801 140696 E: [email protected]

Copies of Future Demand, Supply and Prices for Voluntary Carbon Credits – Keeping the Balance are available to download here: https://wetransfer.com/downloads/adb46524d19d29c4ca3b69e8534f029020210603121350/d05a959b1f2ef7aec0ae8c491415a3c820210603121416/6d5324

About Trove Research

Trove Research is an independent research and data company focused on solving the climate change challenge through objective and rigorous analysis. We work across the range of climate policy areas, including carbon markets and the broader energy transition. We develop analytical tools and insights for use by companies, governments, NGOs and other research organisations to gain deeper understanding of complex sustainability decisions.

For more information see: http://www.trove-research.com; http://www.trove-intelligence.com

About UCL – London’s Global University

UCL is a diverse community with the freedom to challenge and think differently.

Our community of more than 41,500 students from 150 countries and over 12,500 staff pursues academic excellence, breaks boundaries and makes a positive impact on real world problems.

We are consistently ranked among the top 10 universities in the world and are one of only a handful of institutions rated as having the strongest academic reputation and the broadest research impact.

We have a progressive and integrated approach to our teaching and research – championing innovation, creativity and cross-disciplinary working. We teach our students how to think, not what to think, and see them as partners, collaborators and contributors.

For almost 200 years, we are proud to have opened higher education to students from a wide range of backgrounds and to change the way we create and share knowledge.

We were the first in England to welcome women to university education and that courageous attitude and disruptive spirit is still alive today. We are UCL.

http://www.ucl.ac.uk| Follow @uclnews on Twitter | Watch our YouTube channel | Listen to UCL podcasts on SoundCloud | Find out what’s on at UCL Minds | #MadeAtUCL

Find out how UCL is helping lead the global fight against COVID-19 http://www.ucl.ac.uk/covid-19-research

Media Contact
Jane Bolger
[email protected]

Tags: Biomedical/Environmental/Chemical EngineeringBusiness/EconomicsClimate ChangeClimate ScienceEnergy SourcesEnergy/Fuel (non-petroleum)GeographyTransportation/Travel
Share12Tweet8Share2ShareShareShare2

Related Posts

Recipients of the 2023 Shaw Prize in Astronomy: Matthew Bailes, Duncan Lorimer and Maura McLaughlin

Matthew Bailes, Duncan Lorimer and Maura McLaughlin receive the 2023 Shaw Prize in Astronomy

May 30, 2023
Extreme precipitation change

Extreme precipitation in northeast to increase 52% by the end of the century

May 30, 2023

Dual-wavelength lasing: a new tool for steering High-harmonic generation

May 30, 2023

Symmetry breaking by ultrashort light pulses opens new quantum pathways for coherent phonons

May 30, 2023
Please login to join discussion

POPULAR NEWS

  • plants

    Plants remove cancer causing toxins from air

    39 shares
    Share 16 Tweet 10
  • Element creation in the lab deepens understanding of surface explosions on neutron stars

    36 shares
    Share 14 Tweet 9
  • Groundbreaking study uncovers first evidence of long-term directionality in the origination of human mutation, fundamentally challenging Neo-Darwinism

    115 shares
    Share 46 Tweet 29
  • How life and geology worked together to forge Earth’s nutrient rich crust

    35 shares
    Share 14 Tweet 9

About

We bring you the latest biotechnology news from best research centers and universities around the world. Check our website.

Follow us

Recent News

Biological cleanup discovered for certain “forever chemicals”

The clams that fell behind, and what they can tell us about evolution and extinction

Shedding light on the complex flow dynamics within the small intestine

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 50 other subscribers
  • Contact Us

Bioengineer.org © Copyright 2023 All Rights Reserved.

No Result
View All Result
  • Homepages
    • Home Page 1
    • Home Page 2
  • News
  • National
  • Business
  • Health
  • Lifestyle
  • Science

Bioengineer.org © Copyright 2023 All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In