Misplaced Pages

Carbon retirement: Difference between revisions

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Browse history interactively← Previous editContent deleted Content addedVisualWikitext
Revision as of 16:33, 27 February 2024 editHisheeps (talk | contribs)271 editsm GrammarTags: Visual edit Newcomer task Newcomer task: copyedit← 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 
(14 intermediate revisions by 13 users not shown)
Line 1: Line 1:
{{short description|Carbon emission reduction scheme}} {{short description|Carbon emission reduction scheme}}

{{Multiple issues|{{Update|date=July 2023}} {{Multiple issues|{{Update|date=July 2023}}
{{More citations needed|date=December 2021}} {{More citations needed|date=December 2021}}}}
{{Tone|date=February 2024}}}}


'''Carbon retirement''' is a mechanism within ] schemes to mitigate ] by permanently removing emission allowances from circulation.
'''Carbon retirement''' is a mechanism within emission trading schemes, notably the ] (EUETS), designed to mitigate climate change by permanently removing emission allowances from circulation. These allowances, or ] (EUAs), permit holders to emit a specified amount of carbon dioxide. By purchasing and retiring these allowances, companies effectively reduce the total emissions cap, compelling others to decrease their emissions to stay within the tightening limits. This process not only contributes to the overall reduction of ] but also incentivizes industries to adopt more sustainable practices due to the increasing scarcity and cost of allowances.


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 ].
Additionally, carbon retirement encompasses the purchase and permanent retirement of ], which are certificates representing the prevention of greenhouse gas emissions or the removal of 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.


Carbon retirement involves retiring ] – certificates representing reduced ] or ] (GHGs) removed from the atmosphere. The company could then purchase and “retire” carbon credits as compensation for emissions from sources that will eventually be eliminated. 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.


⚫ 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>
== Historical Analysis and Media Coverage of Carbon Retirement ==
⚫ 2008 - 2008: An article in the journal ] described carbon retirement as "straightforward and transparent," highlighting its advantages over traditional ], which can involve complex methodologies, brokers, intermediaries, and concerns about additionality. <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 |doi=10.1016/j.enpol.2007.09.019}}</ref>


== Use ==
2020 - ] 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> 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 ] 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> 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>


==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)
This article needs to be updated. Please help update this article to reflect recent events or newly available information. (July 2023)
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
Find sources: "Carbon retirement" – news · newspapers · books · scholar · JSTOR (December 2021) (Learn how and when to remove this message)
(Learn how and when to remove this message)

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

  1. 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.
  2. "Carbon credits: Scaling voluntary markets | McKinsey". www.mckinsey.com. Retrieved 2024-02-21.
  3. 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)

External links

Category: