showed that the large project developer South Pole, along with carbon credit certifier Verra, were linked to forest protection credits that did not deliver the promised carbon savings.
But carbon credits have long struggled to inspire confidence. Environmental groups say they allow companies to appear to take climate action when in reality they are not cutting emissions.As demand slowed, prices of carbon offsets traded via Xpansiv market CBL, the world's largest spot carbon exchange, fell by more than 80% over the last 18-20 months.
But measuring carbon savings is difficult. Analysts say most projects overestimate benefits that may be short-lived given trees for instance are easily destroyed. EasyJet had purchased forest protection offsets certified by Verra. Ashton said the company had been reassured by third party assessments that it had delivered promised carbon savings.
Stockholm-based consultancy Normative, which helps companies to calculate their carbon footprint, says clients are becoming wary of using credits and understand that without proper due diligence of what they are buying, they risk being accused of greenwashing.