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How Tech Can Support The Voluntary Carbon Market

Nov 07, 2024 - forbes.com
The article discusses the potential of technology in improving the voluntary carbon market (VCM), which allows companies to purchase credits to offset their carbon emissions. The VCM faces challenges such as market complexity, reputation risks, regulatory uncertainty, market volatility, and lack of price transparency. However, technology can help mitigate these issues. Tools like remote sensing, blockchain, and artificial intelligence can provide in-the-field monitoring, ensure secure transactions, and deliver accurate price predictions for carbon offsets.

Various private and public groups are investing in technology to support the VCM. The article emphasizes the need for those engaging in the market to consider the potential of both the VCM and supportive technology, and to focus on measures that mitigate climate change. It also highlights the importance of assessing the viability of these technologies in the maturing VCM, moving away from quick criticisms and towards embracing what matters: supporting measures that mitigate climate change.

Key takeaways:

  • The voluntary carbon market (VCM) offers a way for companies to offset their carbon emissions, but it faces challenges such as market complexity, reputation risks, regulatory uncertainty, market volatility, and lack of price transparency.
  • Technology can help mitigate these challenges. Remote sensing and AI can monitor carbon projects, blockchain can secure transactions and track compliance, and AI can predict carbon offset prices.
  • Investments are being made in technology to support the VCM, but not all technologies will be suitable. It's important to assess the viability of these products and their potential to support climate change mitigation.
  • The article emphasizes the importance of supporting measures that mitigate climate change urgently and wisely, and suggests that the VCM and supportive technology can play a significant role in this.
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