GenZero CEO Frederick Teo says that credible carbon credits can also be a part of corporate decarbonisation strategies, especially to address residual emissions that are very hard to abate. “Carbon markets can direct capital to underlying activities that would not already be commercially viable,” he shares. “A lack of demand commitment for carbon credits generated from high-quality decarbonisation projects is holding back investments into these carbon projects.”
Teo adds that the ARC Coalition is a global platform comprising buyers who are committed to high integrity standards on carbon projects. Through the Coalition, they provide the necessary demand signals in terms of price and volume to catalyse investment into high-quality climate solutions. “If we can scale integrity alongside participation, carbon markets can become a far more effective channel for mobilising private capital into a just transition.”
The Coalition aims to bring together corporates, financial institutions, philanthropic organisations, government agencies, and technical experts to improve market integrity, strengthen practices, and give companies greater confidence in purchasing high-integrity carbon credits. It will also support credible and efficient carbon credit procurement aligned with international principles and best practices for corporate decarbonisation.
To achieve its objectives, the Coalition will aggregate demand, unlock financing opportunities, establish rigorous quality and standards for carbon credit use and improve access to carbon credits.
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According to EnterpriseSG managing director Cindy Khoo, collaboration is key to uplift belief in the voluntary carbon market and advance decarbonisation. “Industry partnerships are vital to strengthen trust and promote participation in the voluntary carbon market,” she says. “We look forward to working with like-minded partners through the ARC Coalition to unlock demand and supply for high quality carbon credits, and to support corporates in achieving their decarbonisation ambitions.”
