Climate Week Spotlights Global Stocktake, Renewables, and Carbon Credits
- Media Manager
- Sep 18, 2023
- 1 min read
Environment + Energy Leader
Written By: Ken Silverstein
Published: September 19th, 2023
Climate Week in New York City kicks off this week, with part of the discussions centering on the December 2023 climate conference in Dubai and the so-called Global Stocktake. That requires countries to lay out their progress related to their carbon-reduction goals.
Nearly every country has some catching up to do. But as previously discussed, 17 rainforest nations are either carbon neutral or close to it. Some are even net carbon removers — the highest achievement under the Paris Climate Agreement.
Countries can choose their paths to get to net zero. However, they have learned critical lessons over the last several months — that their attention and resources must lean into decarbonization. They need to deploy more green energy sources before buying carbon credits. Some companies are getting sued for pursuing carbon offsets instead of spending more resources on renewables or energy efficiency.
“We think there is a reputational risk attached to voluntary carbon credits,” said Charles Boakye, an equity analyst at Jefferies, focused on sustainable finance, in an interview. Now, the environment is too controversial to make significant moves and we are waiting for the temperature to die down. However, we can’t hit these net zero and must purchase viable credits.
The “viable credits” he refers to are Internationally Transferred Mitigation Outcomes or ITMOs. An ITMO is a financial vehicle that counts as an emission reduction, allowed under Article 6 of the Paris Agreement. The Central African Republic, Gabon, and Namibia could issue those credits eventually.
