Developers of carbon projects want the complaints process changed. In any field where good intentions and large sums of money collide, a silent struggle frequently rages in the background. Attention is drawn to the slower, more vexing struggle over regulations, accountability, and fairness rather than the dramatic transactions or eye-catching headlines. That struggle is nearing a tipping point in one rapidly expanding global industry. Although there appears to be innovation and advancement on the surface, those working behind the scenes are seriously concerned about the system.
Developers say carbon market rules need to be fairer and more transparent
Dozens of carbon project developers are urging the registries that set standards for the voluntary carbon market to overhaul their complaint procedures, following several high-profile cases that have dented trust in the sector. The voluntary carbon market, which lets companies buy credits to offset their emissions, has been under growing scrutiny, with many environmental groups saying it generates “junk” credits that allow firms to “greenwash”.
But industry advocates say complaints about projects, which have in some cases led registries such as U.S.-based Verra to stop them from generating credits, are causing unfair damage to the sector as a whole and holding up vital sources of funding for environmental and climate initiatives. The Project Developer Forum, which represents more than 60 carbon projects from Kenya to Singapore.
They said that the current complaints procedures do not offer an effective way for developers to defend against any alleged wrongdoing before it is made public. The forum’s chair, Nick Marshall, told Reuters,
“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.”
Fear of backlash stops insiders from reporting carbon market issues
Marshall also said a few bad actors were doing undue damage to the industry’s reputation and that developers with knowledge of wrongdoing tended not to come forward because the whistle-blowing procedure was not sufficiently anonymised. He said the group has asked leading registry Verra to develop a clear policy and secure submission form on its website, which would allow information about possible integrity issues to be shared anonymously.
Verra told Reuters in a statement that it has had a formal and robust process in place for submitting complaints since early 2024 and that it “already contains provisions that address the concerns that the PD Forum has raised”. Last year, Verra rejected as many as 37 low-emission rice cultivation projects located in China following a quality control review.
Rebuilding trust entails mending rather than discarding what has been damaged
In order to finance climate solutions that would not otherwise be possible, the carbon market is essential. However, developers claim that it will be more difficult to draw in funding and carry on their work in the absence of a fair and effective complaint system. A system that treats everyone fairly and with respect is essential to fostering trust. Also, facing the drop in markets because of the Trump tariffs.
Eliminating responsibility is not the solution to this problem. The goal is to ensure that the regulations benefit all parties, not just the most vocal ones. The carbon market requires more robust underpinnings as it grows. Listening to those in the trenches is often the first step in that process. Already, we have issues and situations surrounding the IMF to update forecasts and flag trade risks; therefore, in this instance, having fair tasks and taking responsibility is vital to fix all the carbon developers to avoid any other issues that might worsen things in the future.
GCN.com/Reuters.