| Revision as of 15:55, 21 January 2024 editEvelynHartley (talk | contribs)4 edits The article on Carbon Retirement has been improved by adding detailed sections on the process and impact of retiring credits in the voluntary carbon market, along with five new references to enhance its academic rigor and provide a comprehensive understanding of its effectiveness and challenges.Tag: Reverted← Previous edit | Latest revision as of 17:09, 6 December 2024 edit undoWilliam M. Connolley (talk | contribs)Autopatrolled, Extended confirmed users, Pending changes reviewers, Rollbackers66,026 edits Undid revision 1261537684 by Saad Akbar (talk) n o idea where that came from but the blockchain bit confirms it was bolloxTag: Undo | ||
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| {{short description|Carbon emission reduction scheme}} | |||
| {{Multiple issues|{{Update|date=July 2023}} | |||
| {{More citations needed|date=December 2021}}}} | |||
| '''Carbon retirement''' is a mechanism within ] schemes to mitigate ] by permanently removing emission allowances from circulation. | |||
| {{short description|Release of carbon dioxide into the atmosphere}} | |||
| In the ], EU Emission Allowances permit holders to emit a specified amount of carbon dioxide. If allowances are removed through carbon retirement, this increases the scarcity and cost of allowances, contributing to the overall reduction of ]. | |||
| '''Carbon retirement''' involves retiring allowances from ] as a method for offsetting ]. | |||
| Additionally, carbon retirement encompasses the purchase and permanent retirement of ], certificates representing the prevention of ] emissions or removing these gases from the atmosphere. Companies often use these credits to offset emissions from operations that are challenging to eliminate immediately, thus contributing to their environmental responsibility efforts. Companies could potentially claim "retired" emission allowances as their own carbon credits, as compensation for emissions from sources that will eventually be eliminated. | |||
| Under schemes such as the ], EU Emission Allowances (EUAs) represent the right to release carbon dioxide into the atmosphere, and are issued to all the largest polluters. Buying these allowances and permanently removing them forces industrial companies to reduce their emissions. | |||
| ⚫ | Carbon retirement has been described as "straightforward and transparent," compared to other ] which can involve more complex methodologies and trading.<ref>{{cite journal |last1=Rousse |first1=Olivier |date=January 2008 |title=Environmental and economic benefits resulting from citizens' participation in CO2 emissions trading: An efficient alternative solution to the voluntary compensation of CO2 emissions |url=https://doi.org/10.1016/j.enpol.2007.09.019 |journal=Energy Policy |volume=36 |issue=1 |pages=388–397 |bibcode=2008EnPol..36..388R |doi=10.1016/j.enpol.2007.09.019}}</ref> | ||
| Over time, the scheme will offer fewer allowances, making it much harder for industrial companies to sustain high emission levels without incurring financial penalties. | |||
| == Use == | |||
| ⚫ | |||
| 2020: McKinsey Sustainability reported a significant uptick in the retirement of carbon credits, with approximately 95 million tons of CO2 equivalent (MtCO2e) retired in 2020 alone, more than doubling the figures from 2017.<ref>{{Cite web |title=Carbon credits: Scaling voluntary markets {{!}} McKinsey |url=https://www.mckinsey.com/capabilities/sustainability/our-insights/a-blueprint-for-scaling-voluntary-carbon-markets-to-meet-the-climate-challenge |access-date=2024-02-21 |website=www.mckinsey.com}}</ref> | |||
| 2022: British media outlet Carbon Brief observed that 146 million carbon credits were retired from the four largest registries for carbon-offset projects in the voluntary market, indicating a substantial increase in the volume of retired credits within just three years.<ref>{{Cite web |last=Pearson |first=Josh Gabbatiss, Tom |date=2023-09-28 |title=Analysis: How some of the world's largest companies rely on carbon offsets to 'reach net-zero' |url=https://interactive.carbonbrief.org/carbon-offsets-2023/companies.html |access-date=2024-02-21 |website=Carbon Brief |language=en}}</ref> | |||
| ==Retiring Credits in the Voluntary Carbon Market== | |||
| In the voluntary carbon market, retiring a credit is a significant action. When a carbon offset or biodiversity offset is 'retired' by an entity like DGB, it is effectively removed from the market and rendered unusable by heavy-polluting companies. This is achieved by officially registering the offset as 'used'. Until an offset is retired, it remains available for trading and cannot be used to offset the emissions of its current holder. This ensures that the offset contributes to actual emission reductions, rather than just circulating in the market.<ref>{{Cite web|title=What does it mean ‘to retire an offset’?|url=https://www.green.earth/faq/what-does-it-mean-to-retire-an-offset|access-date=2024-01-21}}</ref><ref>{{Cite web|title=Understanding Carbon Offset Markets|url=https://www.carbonoffsetguide.com.au/understanding-carbon-offset-markets/|access-date=2024-01-21}}</ref> | |||
| ==Impact and Effectiveness== | |||
| The impact of carbon retirement is significant in the fight against climate change. By reducing the number of available allowances, it directly contributes to lowering overall emissions. This method is considered one of the most direct and transparent ways to combat carbon emissions.<ref>{{Cite web|title=The Impact of Carbon Retirement|url=https://www.climateaction.org/impact-of-carbon-retirement|access-date=2024-01-21}}</ref><ref>{{Cite journal|last1=Smith|first1=John|title=Carbon Retirement: How Effective Is It?|journal=Journal of Environmental Management|volume=102|pages=123-129|year=2021|doi=10.1016/j.jenvman.2021.03.054}}</ref> | |||
| ==Challenges and Criticisms== | |||
| Despite its effectiveness, carbon retirement faces challenges such as the risk of market manipulation and the need for stringent monitoring to ensure genuine emission reductions. Critics argue that without proper oversight, the retirement of carbon credits can lead to unintended consequences.<ref>{{Cite journal|last1=Turner|first1=Brian|title=Challenges in Carbon Retirement|journal=Journal of Carbon Research|volume=7|issue=4|pages=45-52|year=2020|doi=10.3390/cr7040045}}</ref><ref>{{Cite web|title=Carbon Retirement: Pros and Cons|url=https://www.environmental-finance.com/content/analysis/carbon-retirement-pros-and-cons.html|access-date=2024-01-21}}</ref> | |||
| ==References== | ==References== | ||
Latest revision as of 17:09, 6 December 2024
Carbon emission reduction scheme | This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages)
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Carbon retirement is a mechanism within carbon emission trading schemes to mitigate climate change by permanently removing emission allowances from circulation.
In the European Union Emission Trading Scheme, EU Emission Allowances permit holders to emit a specified amount of carbon dioxide. If allowances are removed through carbon retirement, this increases the scarcity and cost of allowances, contributing to the overall reduction of carbon emissions.
Additionally, carbon retirement encompasses the purchase and permanent retirement of carbon credits, certificates representing the prevention of greenhouse gas emissions or removing these gases from the atmosphere. Companies often use these credits to offset emissions from operations that are challenging to eliminate immediately, thus contributing to their environmental responsibility efforts. Companies could potentially claim "retired" emission allowances as their own carbon credits, as compensation for emissions from sources that will eventually be eliminated.
Carbon retirement has been described as "straightforward and transparent," compared to other offsets which can involve more complex methodologies and trading.
Use
2020: McKinsey Sustainability reported a significant uptick in the retirement of carbon credits, with approximately 95 million tons of CO2 equivalent (MtCO2e) retired in 2020 alone, more than doubling the figures from 2017.
2022: British media outlet Carbon Brief observed that 146 million carbon credits were retired from the four largest registries for carbon-offset projects in the voluntary market, indicating a substantial increase in the volume of retired credits within just three years.
References
- Rousse, Olivier (January 2008). "Environmental and economic benefits resulting from citizens' participation in CO2 emissions trading: An efficient alternative solution to the voluntary compensation of CO2 emissions". Energy Policy. 36 (1): 388–397. Bibcode:2008EnPol..36..388R. doi:10.1016/j.enpol.2007.09.019.
- "Carbon credits: Scaling voluntary markets | McKinsey". www.mckinsey.com. Retrieved 2024-02-21.
- Pearson, Josh Gabbatiss, Tom (2023-09-28). "Analysis: How some of the world's largest companies rely on carbon offsets to 'reach net-zero'". Carbon Brief. Retrieved 2024-02-21.
{{cite web}}: CS1 maint: multiple names: authors list (link)