The suggestion in headlines like the one shown below, that carbon credits won’t cut emissions (from an article in the Wall Street Journal* article) just serves to doubt the great work credit programs can do.
It is likely that a tiny, voluntary carbon tax (which is currently carbon credits) is unlikely to significantly alter the behaviour of the major emitters. This is especially true in light of the margins of profit from the production of carbon dioxide or fossil fuels. It's more likely that taxing emissions will have a greater effect on reducing dependency on fossil fuels.
The current emissions problem is one that's serious. However, in order to fully appreciate the value of carbon credits, we have to put aside income statements and instead focus on the balance sheet. It is time to focus on our Long Term Carbon Debit.
If Planet Earth were to maintain an account of its Balance Sheet, and we were required to record in our Asset column our basic needs including food security, physical security, water supply etc... as well as then in our long Team debt entries, we would list the amounts of greenhouse gas and the extreme rate of soil organic carbon depletion from our farms and the staggering extent of degrading our best carbon storage area - the coastal mangrove forests, it would be clear from any examination of the balance sheet that our present problem is not the consequence of a single year's emissions. If this were a company's balance sheet, insolvency would be on the table.
This is the reason I believe any headline that includes offsets for carbon or a decrease in emissions is misleading. The problems that are being faced by climate change don't have to be due to carbon emissions. It can also be the result of years (centuries) of poor agricultural practices. poor farming practices, massive deforestation, mangrove destruction and pollution are only some of the numerous errors that lead to climate change.
How extensive is the damage to mangrove forests? About half to 65 percent of the mangrove forests in the world are gone or have been drastically degraded. The farms in many regions around the globe have lost as much as 80 percent of the organic carbon in their soils to the point that food security is at risk.
We need to change our perspective away from the "triple bottom-line" and focus on accrued balance sheet debt. Carbon credits are an "balancesheet adjustment item" for the total debt. They are not simply a tax today's emissions. Carbon credit can Click for more be used to decrease (carbon-related) the amount of debt.
What can be done to reduce this debt?
It's not difficult to figure out the right answer. Here's an illustration. Within the CarbonNation family of funds, we have created a CarbonNation Blue fund which seeks to do one very simple yet highly effective task that is to protect and restore mangroves. In order for mangrove forests to become large-scale, a significant amount of money is needed. In order to replant one hectare of forest the required amount is between USD2,500 and USD4,500 per head. In addition to this, three years of diligent cultivation by local communities is required.
Additionally, fisheries onshore require better alga-based filters so that the waste of nitrogen and phosphorus is removed and the quality and yield of the product is increased.
As the forest grows, the alga plants come in operation carbon credits will begin to be produced. These can be used to repay the principal as well as return the investment to investors. The community is also the primary beneficiary of the first stage of investment. What is the upside to these benefits to the financial? Mangroves that cover more land will mean more fish and is a major source of income for many coastal communities.
Mangroves with a greater density will provide better protection against coastal erosion as well as rising sea levels. Mangroves are 50 times more effective in carbon sequestration than lower density forests, which nearly everyone has heard of. While machines extracting carbon from the air and underground storage look futuristic Mangroves have been doing this for millions and decades and continue to supply our bodies with food.
The fund has already secured significant financing and also other partners to support these initiatives. However, you are still welcome to contact additional partners.
The article has been well written and researched. The problem I have with it is the negative headline. It is based on the text in the article, and suggests that it was altered or added by an editor.