This post is by Dorothy Neufeld from Visual Capitalist
Accelerating a Net-Zero Future with Carbon Credits
Achieving the goals of the Paris Agreement is critical, yet national climate pledges fall short.
To reach net-zero by 2050, immediate action and $9.2 trillion in annual investment is required, or about 7-9% of global GDP. This would be $3.5 trillion annually more than today, which in 2020 was equal to roughly:
- 50% of corporate profits
- 25% of tax revenues
- 7% of household spending
This infographic sponsored by Carbon Streaming Corporation shows how carbon credits can help accelerate a net-zero future by funding climate action.
Closing the Funding Gap With Carbon Credits
Carbon credits play a vital role in channelling finance to help close this funding gap. Here are some ways in which carbon credits can be used:
- Unabated Emissions: Compensate for unabated or residual emissions while prioritizing mitigation on a science-based pathway.
- Accelerate Global Transition: For beyond value chain mitigation to accelerate the global transition to net-zero.
- Sustainability Goals: Achieve sustainability goals beyond climate action e.g. preserving biodiversity and valuable ecosystems.
Thanks to a growing number of initiatives listed below, 2023 is anticipated to bring greater credibility and transparency to the carbon credit market.
- The Integrity Council for the Voluntary Carbon Market
- Science Based Targets initiative (SBTi)
- Climate Action Data Trust
- Voluntary Carbon Markets Integrity Initiative