Carbon Developers Push for Stricter Rules After Greenwashing Claims

In Short

• Some carbon projects produce low-quality credits, say environmental groups.
• Project developers are asking registries to be more stringent in handling complaints.
• Bogus carbon projects are often involved in greenwashing.

Following instances of laxity in handling grievances, many carbon project developers are demanding that organisations that manage standards for the voluntary carbon market, such as Verra, improve their handling of complaints.

According to developers, the current system could defame the whole industry by making allegations public too quickly, without giving them time to respond. A few high-profile cases have already eroded trust in the sector, and this is now a growing concern.

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Businesses using the voluntary carbon market are allowed to buy carbon credits to offset their emissions. However, following recent statements by various environmental groups, which claim that many projects are not up to standard and are producing low-quality or "junk" credits, the market has come under increasing scrutiny. They also argue that these credits encourage companies to engage in greenwashing.

Consequently, to curtail greenwashing, some registries have stopped certain projects from issuing credits, but developers believe that these actions might be unfair and harmful if the complaints are not properly handled.

Nick Marshall, the forum's chair, said: "You see a lot of projects getting suspended, and it becomes public very quickly. Integrity is non-negotiable, but how we surface and respond to allegations matters just as much."

The Project Developer Forum (PD Forum), comprising more than 60 carbon projects worldwide, says the complaint procedures are inefficient and do not provide an equitable and fair way for developers to defend themselves. They urge registries to create a system where concerns can be reported confidentially, particularly since some whistle-blowers fear coming forward due to a lack of anonymity.

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The PD Forum has asked Verra, one of the largest registries, to introduce a clear policy and a secure, anonymous forum for reporting concerns on its platform. In response, Verra said it has had a formal complaint process in place since the beginning of 2024 to address these concerns.

Incidentally, in 2024, Verra rejected 37 low-emission rice cultivation projects in China after a quality control review.

Ends/

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Source: Reuters