Most Companies Buying Carbon Credits Are Not Greenwashing

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A river running through the Amazon rainforest in Brazil, on Jan. 2, 2023.

n 1983, at a beach resort in Fiji, a young man named Jay Westerveld saw a request that hotel guests reuse their towels to “save our planet.” Reflecting on his experience in a college term paper, Westerveld pointed out the hypocrisy of guilt-tripping guests about towels while the hotel was hastily building more bungalows. “It all comes out in the greenwash,” he wrote, coining a new phrase in the process.

According to the study, which analyzed transactions reported by over 7,000 companies, those engaged in the carbon market are nearly twice as likely to be decarbonizing their operations year-over-year. They are investing three times more in reducing emissions of their own business than companies who steer clear of credits. They are also 3.4 times more likely to have science-based climate targets.

A mass withdrawal from the VCM would have disastrous consequences for climate stability, nature conservation, and human wellbeing. Terrestrial ecosystems currently absorb a quarter of all greenhouse gases emitted by humans. If we invested more in protecting and restoring nature, that could rise to at least , a significant step towards stabilizing our climate.

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