Carbon Market and Demystification of “Greenwashing”

The Voluntary Carbon Market (VCM) has been gaining ground in discussions on sustainability, but it has also become the target of constant criticism, often being labeled as "greenwashing". This widely used term refers to business practices that promote an environmentally responsible image without actually taking effective action to fight climate change. However, experts point out that this view of the VCM is far from reality.

Unlike regulated markets, the VCM is characterized by being an environment in which the purchase of carbon credits is voluntary. In other words, companies that decide to participate are not fulfilling obligations imposed by governments, but rather taking the initiative to contribute to projects that aim to reduce, avoid or remove carbon emissions from the atmosphere. This proactive decision reflects the commitment of several corporations to investing in a more sustainable future.

Criticism of VCM often ignores the crucial role that carbon credits play in financing environmental projects around the world. Initiatives that seek to preserve forests, regenerate degraded biomes or support the energy transition to renewable sources directly depend on the sale of these credits. Without the participation of companies willing to invest in this market, many of these projects would not be possible to get off the ground. Therefore, the demand for carbon credits is an essential engine for the financial viability of actions to combat global warming.

Another point that is often misunderstood is the real impact of these credits. Studies indicate that voluntary carbon credits compensate for less than 1% of the total emissions of the companies that purchase them. This data is essential to understand that VCM does not replace direct decarbonization actions, but acts as a complement, allowing companies to advance at an even faster pace in their sustainability goals. Companies that use carbon credits are able, on average, to decarbonize twice as quickly as those that do not use this tool.

The voluntary market, however, is still modest compared to other economic sectors. In 2023, the global value of this market was estimated at US$2.4 billion, which is a fraction of the size of industries like chewing gum, to give you an idea of ​​scale. This dispels the myth that MVC has a disproportionate economic impact or that it would be an easy solution to the problem of climate change. In fact, its role is complementary and still quite limited in terms of global reach.

It is worth mentioning that not all companies buy carbon credits exclusively with the intention of offsetting their emissions. In many cases, corporations choose to purchase these credits as a way to financially support projects that help remove or prevent greenhouse gas emissions. In this way, they actively participate in initiatives that seek to balance carbon levels in the atmosphere, increasing their positive impacts beyond their own operations.

Companies that participate in this market, in general, follow the approach known as "Reduce and Invest". This model suggests that, as well as focusing on reducing their own emissions, these companies also invest in projects that directly combat global warming. Thus, the VCM positions itself as an important cog in the transition to a low-carbon economy.

While the Voluntary Carbon Market continues to face accusations of “greenwashing”, further analysis reveals that it has a legitimate and relevant role in the fight against climate change. Rather than being a window-dressing solution, VCM provides a platform for companies to invest in climate action, significantly contributing to environmental preservation and mitigating the effects of global warming.

Among the companies that stand out in this scenario is Amazon Connection Carbon (ACC), an organization committed to sustainability in the Amazon. By supporting initiatives that aim to reduce and offset greenhouse gases, Amazon Connection Carbon demonstrates that the Voluntary Carbon Market can be a powerful ally in the fight against climate change, bringing solutions that connect the preservation of the Amazon to the rest of the world.

Connect us:

Visit our website

Follow us on Instagram

Like our page on Facebook