People around the world are now increasingly aware of the need to address rising greenhouse gas emissions, but it's not always easy to prevent emissions in the first place. In order to compensate for unavoidable emissions, we can finance climate action projects that reduce emissions elsewhere.
South Pole's CEO Renat Heuberger spoke about the latest carbon market developments in an interview with Swiss newspaper, "Die Weltwoche". According to Heuberger, there are hardly any organisations left whose only motivation for carbon offsetting is compliance. Nowadays, the bulk of demand for carbon credits comes from companies with ambitious climate targets that take sustainability beyond their legal obligations. The entrepreneur also highlights the benefits beyond emissions reduction of climate action projects: "For example, a renewable energy project generates clean electricity in addition to reducing emissions, a waste project makes a river cleaner, and efficient cooking stoves mean that people live longer and no longer die from smoke-related lung cancer."
When asked about the global impact of emissions reduction projects, Heuberger says a global carbon market is desirable, although unlikely to happen in the near future due to political contentions. Nevertheless, he is confident that political regulation is not the only answer to environmental problems; efficient and commercially viable technologies are also part of the solution.