As corporations race to reach net zero goals, investment in conservation and programs that reduce carbon emissions is an increasingly popular and important way to reach these goals. Through voluntary carbon offsetting, businesses can achieve net zero by removing as much greenhouse gas as they emit. The voluntary carbon market also provides direct financing to climate action projects that otherwise wouldn’t be able to function, as well as supporting investment in climate technology innovation.
There is a need for substantial market growth for the carbon credit market to have a real impact on global emissions. The Taskforce on Scaling voluntary Markets (TSVCM) estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and that the market for carbon credits could be worth more than US$50 billion.
While the ratification of Article 6 during COP26 shows concrete progress in international paths to net zero, this only applies to the compliance market, and doesn’t solve the issues that plague the voluntary carbon market.
For new buyers, the carbon credit market can be tough to navigate as it requires an understanding of the variety of independent practices and technical know-how. For experienced buyers, there may be concerns about the quality of the credits and the legitimacy of the projects linked to these. Ultimately, it should not be just a numbers game; companies around the world and the world at large should want to truly contribute to reversing the climate crisis, and currently the carbon credit market is one of the most viable solutions in the market. However, it is still lacking the much-needed standardization of processes and practices that can help to mitigate these concerns, allowing the market to scale while assuring investors.
As the market remains opaque to an outsider, harnessing trust is an uphill battle with little standardization and reliable references for pricing. A lack of transparency has a knock-on effect for corporations looking to invest in carbon credits. Without widespread trust in the carbon credit market, labels of greenwashing threaten corporations. As consumers have an increased ability to scrutinize corporate activity, it is more important than ever to provide trustworthy solutions to the currently opaque market to incentivize corporations.
Providing buyers with transparent information on carbon projects, and access to standardized pricing can alleviate the concerns and build trust for long-term market growth. Homogenizing carbon credits can allow the generation of reliable daily pricing, consolidating trading activity and promoting liquidity on exchanges.
Recently, at MVGX, we announced that we have successfully certified our status as a carbon neutral business through tokenized cross-border carbon credits, the first company in the world to do so using blockchain technology. This impressive milestone was bolstered by a PAS2060 certification from the British Standards Institution (BSI) – the first time the body has accepted tokenized carbon credits.
As companies struggle to find effective solutions that can support with carbon tracking and reporting, at MVGX we have designed a proof-of-concept system to calculate and verify carbon neutrality for businesses, leveraging the power of blockchain technology.
With our new Carbon Neutrality Management System, we are supporting institutions through the reporting, calculation and validation process to credibly certify carbon neutrality with ISO 14064-1:2018 Carbon Footprint Verification and PAS 2060 Carbon Neutrality Verification — the internationally recognized gold standards for carbon footprint validation in accordance with international management benchmarks. Therefore, enabling institutions to enhance their sustainability efforts and advance their ESG mandates.
While more needs to be done, we’re confident that with this move towards standardization and transparency, we are contributing to enabling the market to scale, encouraging participation, and seeing a positive shift in the court of public opinion.
To find out more about how your organization can be certified carbon neutral, please drop us a note at contact@mvgx.com.
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