Voluntary carbon markets: Carbon credits, Offset Standards,.. | Explainer from a business consultant
#voluntarycarbonmarkets #carboncredits #howtosellcarbonoffsets
In 1989, the American electric power production firm AES Corp decided to finance an agri-forest project in Guatemala, investing two million dollars. The goal of the project was to offset the emissions of a new power plant the group had built in Connecticut by planting 50 million trees. This project became the first documented carbon offset program and it marked the beginning of Voluntary carbon markets.
Why does it help to address climate change? Since we only have one atmosphere, it does not matter where the emissions are released, because they will soon spread around the earth, creating a greenhouse effect. Following the same logic - it also doesn’t matter where we reduce emissions. Therefore, the reduction of a ton of CO2, no matter where or how it is done, results in the same climate benefit.
The unit traded on Voluntary Carbon Markets is carbon credit. Which is a tradable certificate representing 1 ton of CO2 equivalent removed from the atmosphere, by a project designed specifically for this purpose.
Voluntary carbon market does not have a single regulatory body and is highly fragmented. Which means there are many agencies with somewhat different standards that can verify the project. And standards are important cause carbon offsets may be of high quality, but may also be of low quality.
This scattered pattern of standards and lack of proper regulation is a reason why voluntary markets get criticized and partially this is fair. But it's also worth mentioning that these days voluntary carbon markets became much more mature. Standards are getting better, the process of purchasing carbon offsets is getting easier and more accessible. And, moreover, learnings that came from voluntary markets became super valuable to build the second type of Carbon markets - compliance or regulatory ones.
0:00 Intro & questions to be covered
0:33 First carbon offset project
1:29 Definition of Voluntary Carbon Markets
1:45 Why does it help to address climate change?
3:27 What is traded on Voluntary carbon markets? (definitions of carbon credit and carbon offset)
4:31 How do carbon credits occur on Voluntary Carbon Markets?
5:45 Examples of the biggest VCM standards programs
8:40 Executive summary
Пікірлер: 108
This young woman is a great researcher, she really understands Climate change with all its carbon trade and market.
Interesting content, videos like this and help from an expert makes things easier.
@finntomkins6825
2 жыл бұрын
Couldn't agree more, their help goes a long way, that's why I am now being coached by one, Edwin Earl.
@ethangavin5348
2 жыл бұрын
hello Finn, i would also like to linked to one.
@finntomkins6825
2 жыл бұрын
INVESTWITHEARL
@finntomkins6825
2 жыл бұрын
on telegram
This is the quality content on this topic that KZread has been missing. You have made this topic much more approachable and I'm grateful I found your channel!
@weku.energy
Жыл бұрын
Agreed!
Your channel is amazing, even thou it is a complicated topic you make it very understandable. Congratulations for the great, clear and easy to understand content.
i have an interview tomorrow with a hedge fund operating in carbon markets and this resource is a gem! thank you so much
Thank you for a great video! I'm currently learning about carbon offsets for work and this is by far the best explanation on voluntary markets I've come across. Love to see it!
Good job! I was researching carbon credits this is informative and I am from Kenya..lol! more resources and links in future videos are welcomed.
This content is gold!! We have a small family business which sells women’s handbags, and for over a month we have been trying to figure out the best way to offset our carbon footprint generated mostly by the leather and PU leather. This video is a great starting point.
Thank you so much for uploading these Kate! You deserve a million subscribers!!
@BakalKate
3 жыл бұрын
Thank you so much!! :)
there is always a way to explain…. its not skill. its gift from nature. love u girl….. awesome
Great starter video for such an interesting topic! Would love for you to cover the topics of additionality and carbon emission baselines, which are essential components for projects to qualify for carbon credits, and determine how many carbon credits a project can produce. Looking forward to more content, keep it up!
Thank you for another great video Kate!
Great video. Thanks for sharing your knowledge of carbon offset and delivering it in such an accessible fashion.
I am studying this in school thank you for your video!
Awesome videos. Thanks! I'll be watching more of them. Next one - the Compliace Carbon Market! *As soon as I have time haha
Very interesting video! Thank you!
Really good video, please continue making them!
@BakalKate
Жыл бұрын
Thanks, will do! :)
Thanks you, it's a little clearer now.
This is fantastic content! Thank you!
Thank you for the excellent, clear, very simple explanation of the voluntary carbon market.
Thank you very much for this great video. It helped me a lot and got me a job as a CO2 reduction consultant. A great thank you! Charming lady too !
Very clear and useful Kate, you go girl!
Your videos are wonderful just because the topics are presented in a crisp, clear and structured manner ✨.By the way would appreciate a video on EN16258 standard .
Your videos are very helpful! Thanks a lot
Very informative lecture. Appreciate an all-encompassing format . Lucid and to the point. Thanks !!
@BakalKate
3 жыл бұрын
Thank you! Glad you liked it ☺️
Thank you for a great video!
Great explanation
Clear explanation..
Hi Kate, this is super helpful! Thank you! Can I suggest for these videos if you can add resources/further readings on the descriptions? So that we can get deeper into certain aspects of your explainer if we need to. But, again, wonderful job!
You are amazing Kate! Thank you so much for the great videos
Very clear ! My organisation (soil capital)i is working on this matter in Europe and with farmers. Happy to exchange with you on this.
It would help lot to feature the different methodologies of the carbon sequestration (such as mangroves) and the corresponding rate of sequestration (how much carbon credits are generated by a particular methodology such as giant bamboos in tropical areas). Illustration with approved methodologies would be awesome. Thank you.
This was very helpful, thank you!
Thanks a lot for a very useful video
@BakalKate
2 жыл бұрын
Glad it was helpful! ☺️
Thank you for your clear and comprehensive presentations. ❤️ Subscribing here.
thank you so much!!
Thank you so much for this video, it helped a lot! Congratulations on your dedication to sharing this content! Make more videos related to the carbon market and current trends :)
@BakalKate
2 жыл бұрын
Thank you! Will do! 🙌
really interesting market
Great video....
@BakalKate
Жыл бұрын
Thanks!
Great work i have tokenised the carbon
one stop solution to Climate change questions
It would be great to know more about the valuation of those carbon credits! Amazing information! Keep it up!
Great video. Very clear and informative on an important topic. What happens to those credits that were bought from a reforestation project, that a few years after was destroyed in a wild fire ? - and who is monitoring that carbon is not released sooner than expected to the atmosphere ? - Again great job, and go on !!
Thanks Kate, what I'm interested in are two things. First, I believe we will have a social credit score tied to our carbon use e.g. home use of natrual gas, number of vehicles owned including types, air or sea travel, all tied to smart meters and satellite surveillance including weighing our individual garbage cans for additional levies for excesses including sewer surveillance. How can I buy a certified cardon credit that can only be used once but can be carried forward to use at a later date? Second, how can I make money (vehicle) as my money (savings) are subject to the force's of inflation yet a Carbon Tax (or credit) can only increase over time
Nice video.
I hope these markets develop more and allow smaller projects to earn and sell carbon credits without much hassle and bureaucracy
@BakalKate
3 жыл бұрын
Totally agree! :)
Thank you very much kate bakal, i was looking some give me information for a long time, my question is how to know daily market price of carbon credits of forestry and agricultural price
It's important to note that in that first project in Guatemala, the carbon benefit didn't come from planting trees, it came from reducing deforestation because agroforestry makes farming more sustainable.
@BakalKate
3 жыл бұрын
Thanks for pointing that out! :)
Great video; really comprehensive and concise. Just one thing, trees that fall and decay, puts most of its carbon back into the soil, as opposed to the atmosphere, which burning a tree does. I've subbed, btw 👍🏽
@kouchang13
3 жыл бұрын
Trees that get's burn can be turned into biochar/charcoal.
@theforestgardener4011
2 жыл бұрын
Some of the carbon goes back into the soil but a good portion does get released into atmosphere, even if it is broken down by fungi.
Great video, thanks
hi thank u so much for this! actually, would you do a deep dive on blue carbon projects and blue economy? thank u
Great overview, thanks!
@BakalKate
3 жыл бұрын
thank you!!
Thanks
Thank you for usful knowledge. I really appreciate this.
@BakalKate
3 жыл бұрын
Thank you so much for watching :)
Hi Kate, thank you for the video - it's very informative! For companies like Microsoft want to voluntarily reduce emissions, can they buy allowances from compliance trading schema like the ETS? Thank you!
I recently read a cool paper on voluntary markets and blockchain. The paper's name was "Forest carbon offsets over a smart ledger." It would be nice to see a video commenting on these projects involving blockchain.
@BakalKate
Жыл бұрын
This is actually a very interesting topic! I’ll look into it :)
Thanks for the video tut, it was really impactful. I have this question: if I decide to start an offsetting carbon credit project today, say forestry, what will be my determining factor for pricing per carbon tone.
Спасибо
Can you make a video of how to know different market price carbon offsets in different projects
@BakalKate
Жыл бұрын
Yes! I’ll be posting a video about pricing of carbon credits in the next couple of weeks :)
I'm curious. Does forest preservation qualify for VCM? Older trees absorb far more GHG than recently planted tree saplings
Thank you for the nice video Kate. Are the carbon credits annual ie. does it mean i can sell carbon credits every year provided the trees are in place and do i need to get it certified every year
Hello Kate. Congratulations for your charity. I'd like to ask you: It does exists a professional agency who helps to registering on Verra and Gold Standard? Kings Regards
What's the difference between voluntary carbon market, clean development mechanism AND REDD+
So does that mean carbon credit is a market that can provide financial incentives to plant more trees by selling the credit one creates on forestation as carbon credit certificates? Of course, provided one satisfies all the conditions required to be eligible for carbon credit.
I'm trying to find it anywhere with no luck. can you please tell me the 4 UN requirements for a carbon emission project?
Very very useful information. Do you have website?
@BakalKate
2 жыл бұрын
Glad it was useful!! Nope, unfortunately don't have a proper website yet :)
What would be your recommendation if I asked for an advice for articles about "Carbon Financing and its applications"?
How can an SME using solar resell their offset carbon to the market? is there specific consultant you need to hire?
Hello Kate, thank you for sharing, I have a question, hope you can help me. If I have a factory using efficient and green technologies in a country where is not mandatory the Carbon Offset and there are not a taxes for the GHG emissions, do we can certificate the reduction of the GHG and get carbon credits to sell in other markets?
Help me how to buy carbon credit?
Very informative. Thank you. I have stock in Carbon Streaming Corp. Do you know of any other publicly traded Voluntary projects?
@alexpernin9906
3 жыл бұрын
Star Royalties (TSXV: STRR, OTCQX: STRFF) owns royalties on carbon offset projects (they just acquired one on a forest in Alberta, Canada last week), and the company is ramping up its investments in directly creating carbon offset projects and carbon offset credits.
Thanks for the precise explanations, can you please guide which offsets are accepted in CDP and how can they help score better.
My mean concern is that thi is still "voluntarily". That being said, this is a completely environmentally-aware market. Otherwie it would not exist. Am I right?
Help me how to buy carbon credit
Your content is amazing. Thank you for that. Feedback: you should work to improve your articulation, for the sake of this good job.
Voice quality not good enough 😢
I have plenty of tree at my backyard somebody need to paid me money monthly or annually otherwise I would cut it down- Carbon credits
stake klima 3,3
Plz improve your accent. Very difficult to understand without subtitles.
@oksanaoks5475
Жыл бұрын
Her accent is very easy and comprehensive
That is that beautiful accent?
@BakalKate
3 жыл бұрын
Russian ) trying hard to make it less noticeable
@dwdelve
3 жыл бұрын
@@BakalKate don't, like yourself its beautiful
2:22 The background music was too loud to be able to focus on what you were saying