Which US Carbon Credits to Buy?

Various articles surfaced this week that questioned the value and validity of certain U.S. carbon credits.

The UK newspaper, the Guardian, reports that U.S. carbon credits issued by the CCX, represent emissions reductions that might have happened anyway, even if the exchange did not exist.

“The largest U.S. greenhouse gas emissions market has paid farmers millions of dollars in the name of fighting climate change, but the money may have done little, if anything, to slow global warming.

The National Farmers Union said this month that some of its members had been paid a total of $8 million since 2006 by the Chicago Climate Exchange for taking voluntary actions such as no-till farming. The technique arguably cuts emissions by leaving crop waste undisturbed to decay under the soil.

But many farmers began practicing no-till years before members signed agreements with the CCX, and that is where the problem lies”.

Without the facts, I am not in a position to comment on the validity of these statements, but the allegations do raise a critical point:

Not all carbon credits are created equal, and buyers of carbon credits should do their due diligence as to which carbon credits to buy and where to buy them.

Is there a difference between the CCX and other emerging carbon exchanges like the Green Exchange, which NYMEX launched in March? Join the discussion on Viridus, where Viridus members discuss how to become carbon neutral and the choices available to U.S. companies.