Offering high-quality carbon credits must be a priority for COP29

Conversations about the role and integrity of carbon credits have increased recently as governments and corporations around the world tackle the complex challenge of decarbonization. Most of the attention has been focused on building demand for these loans. The offer page is overlooked. Based on my experience as a front-line player in this market, I predict that even if demand increases, the credit supply crisis is likely to become a significant obstacle to the growth and efficiency of the carbon market.

Three reasons have influenced my current view. First, there are not enough quality credits to meet the requirements of a single global compliance market – the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Forecasts by various agencies estimate that demand could be seven to fourteen times higher than supply, depending on the measures airlines take to reduce emissions, as well as the development of appropriate carbon registries and projects. (Sumant Sinha, more at forbes.com)