The Biden Administration has taken a significant step towards addressing climate change by issuing seven new principles for voluntary carbon markets. These principles, signed by top federal climate advisers and cabinet secretaries, aim to drive progress towards U.S. climate goals.
Carbon markets allow corporations to purchase credits that fund projects reducing or removing greenhouse gases. These credits can then be counted towards their own CO2 reduction goals. As of 2023, the market was valued at nearly $2 billion.
The seven new principles emphasize the need for credible standards in carbon credits and call for activity funded by these credits to avoid environmental and social harm. Additionally, companies are urged to focus on CO2 reductions within their own value chains and publicly report purchased and retired credits.
Furthermore, the principles highlight the importance of accurate reflection of the climate impact of retired credits and reliance on high-integrity standards. Buyers are encouraged to improve market integrity, while policymakers should work towards lowering transaction costs in the long run.
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https://www.greenbiz.com/article/white-house-issues-7-new-principles-restore-integrity-carbon-markets
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