Auditors Fail in Role of Safeguarding Carbon Market, Study Finds
JOHANNESBURG, SOUTH AFRICA, OCT 21 – The summit seeks to build trust and align African carbon strategies with global standards while highlighting a projected market growth from $950 billion to $16 trillion in the next decade.
- A study published Thursday in Science revealed widespread systemic failure by auditors to uphold integrity in carbon credit projects worldwide, raising concerns amid a market revival.
- This failure stems from economic incentives and unconscious bias pressuring auditors, who risk their livelihoods if they disapprove many identified junk credits within a $2 billion peak market in 2022.
- The authors studied 95 projects initially certified but later rejected or suspended by a leading registry and found 21 of just over 30 accredited auditors involved, showing the problem is widespread, not isolated.
- Bill Winters, CEO of Standard Chartered, highlighted a large untapped corporate demand for credits but warned that increased demand could worsen audit problems, even as the UN’s 2023 rules pave the way for a new carbon market.
- Despite concerns, numerous industry-led efforts aim to improve credit quality and demand as carbon markets reached about $950 billion in 2023 and are expected to grow significantly in the coming decade.
11 Articles
11 Articles
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