The White House Wants to Restore Carbon Credibility to Carbon Markets
by Sara Osorio, Environmental, Health and Safety Affairs Coordinator Jul 3, 2024

Carbon credits are mechanisms that allow individuals and organizations to compensate for their carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere. These projects can range from renewable energy initiatives to reforestation efforts. Voluntary Carbon Markets (VCMs) are platforms where companies can purchase carbon credits to offset their carbon emissions. However, VCMs and carbon credits in general have recently come under intense scrutiny for various reasons.

Critics argue that carbon credits can create a false sense of security, allowing companies and individuals to continue emitting greenhouse gases without making substantial efforts to reduce their own emissions. There are concerns about the actual effectiveness and integrity of some offset projects, as issues like double-counting, lack of additionality, and impermanence can undermine their claimed environmental benefits. Additionally, the voluntary nature of VCMs means there is often insufficient regulatory oversight, leading to variability in the quality and credibility of carbon credits. This variability can erode trust in the system and impede genuine progress toward mitigating climate change.

In an attempt to restore credibility to carbon credits, the Biden administration along with the secretaries of the treasury, agriculture, and energy issued a “Voluntary Carbon Markets Joint Policy Statement” on May 28, 2024. The statement acknowledges the widespread criticism surrounding carbon credits and VCMs and stresses the importance of using credible credits. It also lays out seven principles for responsible participation in VCMs. These seven principles are:

  1. Carbon credits must meet credible standards and represent real decarbonization.
  2. Activity funded by credits should avoid environmental and social harm and, where possible, generate co-benefits.
  3. Companies should prioritize reductions in their own value chains.
  4. Companies should publicly disclose the nature of purchased and retired credits.
  5. Public claims should accurately reflect the impact of retired credits and companies should only rely on credits that meet high integrity standards.
  6. Buyers should contribute to efforts that improve market integrity.
  7. All stakeholders, buyers and policy makers, should seek to lower transaction costs.

These principles are not legally binding and instead are meant to support the development of “guardrails and incentives” that will allow carbon credits to be a part of decarbonization efforts. Supporters of carbon credits say that they are crucial for Scope 3 emissions from supply chains where companies cannot directly impact emissions. These seven principles come after other government agencies have implemented legislation and regulations related to carbon emissions and offsets. Earlier this year the Securities and Exchange Commission (SEC) released its long-awaited carbon disclosure rule and California passed the Voluntary Carbon Market Disclosure Act (VCMDA).

Printers considering the use of carbon credits in their sustainability efforts should take the necessary precautions to ensure they are actually reducing the intended emissions. Faulty carbon credits can lead to claims of greenwashing and/or lack of regulatory compliance. Members are encouraged to visit the Alliance’s Environmental, Health, and Safety (EHS) webpage or reach out to the EHS team with questions regarding carbon credits and other sustainability issues.

In this article, Sara Osorio, Coordinator, EHS Affairs, PRINTING United Alliance, reviews the White House’s new carbon offset guidance. More information about this and other environmental, health, and safety information can be found at Business Excellence-EHS Affairs or reach out to Sara directly if you have questions about how these issues may affect your business: sosorio@printing.org.    
  
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.  

Business Environmental Sustainability
Sara Osorio Environmental, Health and Safety Affairs Coordinator
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Sara Osorio is the Environmental, Health and Safety (EHS) Affairs Coordinator at PRINTING United Alliance. Her primary responsibility is to assist members with EHS regulatory compliance, sustainability, and EHS consulting. Sara also monitors the EHS regulatory activities at the federal and state-level that impact the printing industry including those occurring at Environmental Protection Agency (EPA), the Occupational Health and Safety Administration (OSHA), the Department of Transportation (DOT), and other agencies. She develops guidance material for members, gives presentations, and writes articles on EHS regulations and sustainability issues. She also supports the Sustainable Green Printing Partnership and Alliance members in their efforts to certify printing operations in sustainable manufacturing.

Sara received a Bachelor of Science in Environmental Studies from Florida International University and is pursuing and Master of Science in Sustainable Management from the University of Wisconsin – Green Bay.

Speaking Topics:

  • Regulatory compliance and sustainability
  • Webinars on a wide variety of EHS related topics
  • Customized seminars and workshops
  • Employee training on safety and environmental compliance

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