Cutting greenhouse gas emissions with carbon offsets

Cutting greenhouse gas emissions with carbon offsets

Cutting greenhouse gas emissions with carbon offsets
Climate change activists protest in London with a call on governments to act now to reduce greenhouse gas emissions. (AFP)
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Amid the worsening climate crisis, carbon trading markets have emerged as a cutting-edge tool for controlling greenhouse gas emissions.

These include cap-and-trade systems, which allocate companies a limited number of emission allowances under a set maximum, and carbon offset programs, which let industries earn credits by financing environmentally sound projects to offset their emissions.

The goal is straightforward — reduce emissions by putting a price on carbon pollution.

The carbon market has grown substantially in recent years, reaching an estimated $950 billion in 2023 — a 14 percent increase from its valuation in 2022. This steady growth highlights its rising importance.

However, a key question remains: Are these measures enough to support global efforts to combat climate change?

While the potential of carbon markets is promising, their effectiveness depends on sufficient transparency, a robust legal framework and international collaboration.

Carbon markets play a crucial role in advancing climate action by encouraging businesses to reduce emissions while financing cleaner technologies.

For example, cap-and-trade models incentivize industries to develop low-emission alternatives to meet regulatory standards.

The EU’s Emissions Trading System has successfully implemented this approach, cutting emissions in the EU’s power and industrial sectors by 43 percent since 2005.

Carbon offsets take sustainability to a new level by funding projects such as tree planting and clean energy initiatives. In 2022, voluntary carbon markets directed more than $2 billion into global projects that reduced CO2 emissions.

However, criticisms remain. A lack of standardization can result in “greenwashing,” where low-quality offsets enable companies to maintain high emission levels. A robust legal framework and systematic oversight are essential to prevent malpractice and ensure carbon markets deliver measurable, meaningful climate impacts.

Globally, carbon markets are gaining momentum. In the US, California’s cap-and-trade program has reduced emissions while generating $19 billion to fund clean energy projects.

In Asia, China launched the world’s largest national carbon market in 2021, covering more than 2,200 power plants and representing 4.5 billion tons of CO2 annually.

Yet challenges persist. Price volatility creates uncertainty, as seen in the EU ETS, where carbon prices dropped sharply from around €84 per ton in January 2024 to as low as €52 within about two months, according to the Carbon Market Watch.

Carbon offsets take sustainability to a new level by funding projects such as tree planting and clean energy initiatives.

Majed Al-Qatari

Moreover, fragmented standards in voluntary markets hinder global cohesion, underscoring the need for international frameworks to align efforts, as emphasized during the UN Climate Change Conference, COP29, in Azerbaijan last year.

Carbon markets were a central focus at COP29, with new commitments to expand both voluntary and compliance markets. Officials highlighted Article 6 of the Paris Agreement, which seeks to align carbon market rules across nations and promote international climate action.

The focus also shifted to the credibility of carbon credits. For instance, the Integrity Council for the Voluntary Carbon Markets introduced new standards to ensure that carbon credits deliver real climate impacts.

These developments signal a growing global consensus. As a result, it is crucial that carbon markets uphold the highest levels of transparency, accountability, and credibility.

Saudi Arabia has emerged as a leader in advocating for the development of carbon markets through the Saudi Green Initiative. The Kingdom has led efforts focusing on carbon trading, as well as Public Investment Fund mechanisms, to build a regional voluntary carbon market and a dedicated platform for trading carbon credits.

Moreover, the Kingdom plans to invest in carbon credit trading to help reduce emissions in hard-to-abate sectors, including oil and gas.

As such, the Gulf country aims to achieve a carbon sequestration and storage target of 44 million tonnes annually by 2030 as part of its net-zero emissions goal for 2060.

This vision supports Saudi Arabia’s broader goal of balancing economic growth with environmental protection.

Looking ahead, the question remains: Can carbon markets achieve the goal of combating climate change?

The International Monetary Fund argues that carbon pricing policies must accurately reflect the cost of carbon emissions. It recommends setting a basic carbon price of $75 per ton by 2030 to help ensure global warming does not exceed 1.5 C above pre-industrial levels.

Innovations like blockchain-based carbon credit systems also offer solutions, addressing transparency and fraud issues while improving market efficiency.

Enhanced international cooperation is crucial as well. Bold agreements, such as those proposed at COP29, can help standardize practices and make fair emissions reductions achievable worldwide.

Carbon markets have significant potential to reduce emissions by encouraging the adoption of cleaner technologies and funding sustainable initiatives. However, their success depends on increased transparency, strict regulations, and global coordination.

When carbon markets are aligned with the goals of international climate policies, they can play a crucial role in driving the world toward a sustainable, low-carbon future.

Majed Al-Qatari is a sustainability leader, ecological engineer and UN Youth Ambassador.

 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Trump’s return boosts Israel’s pro-settlement right: experts

Trump’s return boosts Israel’s pro-settlement right: experts
Updated 16 min 23 sec ago
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Trump’s return boosts Israel’s pro-settlement right: experts

Trump’s return boosts Israel’s pro-settlement right: experts
  • “Since Trump’s election in November, we’ve started to hear more and more rhetoric about annexation in the West Bank, and seen more and more actions on the ground,” said Mairav Zonszein, an analyst from the International Crisis Group
  • Trump has made clear statements on Gaza, demanding the release of Israeli hostages and making plans for the territory, but he has remained silent on Israeli actions in the occupied West Bank, which have escalated since the war in Gaza began

JERUSALEM: US President Donald Trump’s return to power has emboldened Israeli leaders’ push to increase military presence in Gaza and reinvigorated right-wing ambitions to annex the occupied West Bank, experts say.
After a phone call Tuesday with Israel’s Prime Minister Benjamin Netanyahu, Trump said on social media: “We are on the same side of every issue.”
In Gaza, where the war sparked by Hamas’s October 7, 2023 attack on Israel has raged for more than 18 months, Trump’s comeback meant “big changes” for Israel, said Asher Fredman, director of Israeli think-tank Misgav Institute for National Security and Zionist Strategy.
“The arms embargo imposed by (former President Joe) Biden’s administration has essentially been lifted,” Fredman said.
“That, together with the fact the northern front (Lebanon and Syria) now is quiet and we have a new defense minister and a new (army) chief of staff, is allowing Israel to move forward in achieving its military goals in Gaza.”
Fredman said Trump has a good grasp of the situation in Gaza and understands Israel’s fight against Hamas.
“If Israel decides to stop the war and have a ceasefire with Hamas, he’ll support it... but he also listened closely to released hostages who told him how terrible Hamas treated them, and his instinct is to get rid of Hamas,” Fredman said.
Trump has made clear statements on Gaza, demanding the release of Israeli hostages and making plans for the territory, but he has remained silent on Israeli actions in the occupied West Bank, which have escalated since the war in Gaza began.

Just days after taking office, Trump proposed removing Gaza’s 2.4 million Palestinian residents to Jordan or Egypt, drawing international outrage.
Although he has since appeared to backtrack, the remarks emboldened Netanyahu and Israeli far-right ministers who continue to advocate implementing the plan.
Analysts say Trump’s silence on the West Bank has encouraged hard-line ministers who openly dream of annexing the territory, which Israel has occupied since 1967 and Palestinians see as part of their future state.
In March, Israel’s cabinet approved the construction of a road project near the Maale Adumim settlement that would separate traffic for Israelis and Palestinians, a move Israeli NGO Peace Now likened to “apartheid.”
Shortly afterward, in a joint statement, Defense Minister Israel Katz and Finance Minister Bezalel Smotrich described Palestinian construction in the West Bank as a “strategic threat to the settlements.”
Smotrich, calling the area by its biblical name, hailed a record year for “demolishing illegal Arab construction in Judea and Samaria” and said the government was working to expand Israeli settlements — which are illegal under international law.
“Since Trump’s election in November, we’ve started to hear more and more rhetoric about annexation in the West Bank, and seen more and more actions on the ground,” said Mairav Zonszein, an analyst from the International Crisis Group.
It is a “combination of Trump’s specific approach and the people that he’s chosen to be around him that have led Smotrich, Katz and others in the Israeli right to be confident that they can move forward with annexation,” she told AFP, mentioning for example the new US ambassador to Israel, Mike Huckabee, who has openly backed Israeli settlements.

Sanam Vakil of Chatham House said that while Trump “has said he wants to end conflicts, there’s not one plan underway. I think there’s maybe multiple conflicting agendas.”
“There’s no criticism, there’s no condemnation of Israel’s activities, and I think that gives it free rein and confidence to continue its expansionist agenda” in the West Bank, Vakil said.
On Gaza, Vakil said Trump was “giving Netanyahu and his hard-liners a very long runway to get the job done.”
Israel says it now controls 30 percent of Gaza’s territory, while AFP’s calculations based on maps provided by the military, suggests it controls more than 50 percent.
While Trump and his administration have openly supported many of Israel’s policies, particularly regarding the Palestinians, sharp differences are emerging on another key issue, Iran.
Vakil said that by being flexible on the Palestinian issue, Trump was likely “trying to buy himself some room to manage the Iran file.”
The Trump administration has been engaged in indirect talks with Israel’s arch-foe Iran on its nuclear program, a clear departure from Netanyahu’s long-standing policy, calling to address the threat through military means.
“The president is making it clear that the military strategy isn’t going to be the first way to address the Iran crisis,” Vakil said, adding this has Israelis deeply worried.
On Saturday, Netanyahu appeared to push back against Trump’s diplomatic initiative, saying in a statement that he remained “committed to preventing Iran from obtaining nuclear weapons.”

 


Israeli military says it ‘most likely’ intercepted missile coming from Yemen

Israeli military says it ‘most likely’ intercepted missile coming from Yemen
Updated 3 min 10 sec ago
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Israeli military says it ‘most likely’ intercepted missile coming from Yemen

Israeli military says it ‘most likely’ intercepted missile coming from Yemen
  • Israel’s national ambulance service Magen David Adom (MDA) said that no calls have been received regarding rocket impacts or casualties

TEL AVIV: The Israeli military said it “most likely” intercepted a missile launched from Yemen early on Wednesday, following alarms that sounded in several areas in Israel.
Israel’s national ambulance service Magen David Adom (MDA) said that no calls have been received regarding rocket impacts or casualties.
The Iran-backed Houthi movement, an armed group that has taken control of the most populous parts of Yemen, have been launching missiles and drones at Israel in solidarity with Palestinians over Israel’s war against Hamas in Gaza.

 


Legacy showdown: Eubank Jr. and Benn finally set to settle grudge match

Legacy showdown: Eubank Jr. and Benn finally set to settle grudge match
Updated 20 min 5 sec ago
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Legacy showdown: Eubank Jr. and Benn finally set to settle grudge match

Legacy showdown: Eubank Jr. and Benn finally set to settle grudge match
  • More than three decades after their fathers’ fierce boxing rivalry gripped the UK, Chris Eubank Jr. and Conor Benn will at last meet in the ring this Saturday
  • Their showdown has been long delayed, after Benn’s failed drug test scuppered plans for a 2022 bout

LONDON: More than three decades after their fathers’ fierce boxing rivalry gripped the UK, Chris Eubank Jr. and Conor Benn are set to finally meet in the ring this Saturday at Tottenham Hotspur Stadium in London.

Ahead of the highly anticipated clash, long delayed after Benn’s failed drug test scuppered plans for a 2022 bout, their rivalry was reignited on Tuesday during the fighters’ pre-bout “Grand Arrivals” at The Pelligon in Canary Wharf.

For both of them, this is about more than just victory; it’s about family legacies and settling unfinished business in one of British boxing’s most storied rivalries. 

Chris Eubank Jr. and Conor Benn are set to finally meet in the ring this Saturday at Tottenham Hotspur Stadium in London. (GEA)

The tension between the two men crackled as they faced off, the long history between their families impossible to ignore. This is more than a fight; it is a continuation of a saga that began in the 1990s, when Chris Eubank Sr. and Nigel Benn fought two epic battles, splitting the loyalties of British boxing fans. Eubank Sr. won their first encounter, in 1990. The 1993 rematch ended in a bitter draw.

Their sons are now poised, perhaps, to settle the score, with both fighters promising fireworks. Eubank Jr., who has remained active in the ring since the previous plans were canceled said he is seeking “revenge” for the chaos caused by the 2022 fallout. 

Benn, who has spent much of the past two years involved in legal battles to clear his name, insists he is ready to deliver a “one-sided beatdown.”

The lead-up has been far from respectful. During a press conference last month, Eubank slapped Benn with an egg in a mocking reference to the latter’s claim that contaminated eggs might have caused him to fail the drug test.

Saturday’s event is expected to draw 62,000 fans and features a packed undercard, including: Anthony Yarde vs. Lyndon Arthur (light heavyweight); Liam Smith vs. Aaron McKenna (middleweight); Chris Billam-Smith vs. Brandon Glanton (cruiserweight); and Viddal Riley vs. Cheavon Clarke (cruiserweight).

Fight week also includes many fan events, including: a media workout on Wednesday; a press conference on Thursday; the public weigh-in on Friday in Islington; and even a 5 kilometer charity run through central London on Saturday morning.

Adding a modern twist, fight night itself on Saturday will feature a theme inspired by the video game Fatal Fury: City of the Wolves, merging boxing with pop culture in an attempt to broaden the event’s appeal.


Trump: No plans to fire Fed Chair Powell, but wants lower rates

Trump: No plans to fire Fed Chair Powell, but wants lower rates
Updated 23 April 2025
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Trump: No plans to fire Fed Chair Powell, but wants lower rates

Trump: No plans to fire Fed Chair Powell, but wants lower rates
  • “I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday

WASHINGTON: President Donald Trump said on Tuesday he has no plans to fire Federal Reserve Chair Jerome Powell, but said he wants interest rates to be lower, remarks that could defuse tensions over the central bank chief’s future that have rattled investors.
“I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday. “I would like to see him be a little more active in terms of his idea to lower interest rates,” he added.
Trump’s statement was the first de-escalation after days of withering criticisms he has lobbed at Powell for not further cutting interest rates since Trump resumed office in January.
The broadsides were often accompanied by threatening remarks, such as last week’s social media posting that Powell’s termination as Fed chair “cannot come fast enough,” that spooked financial markets that view the Fed’s independence as underpinning its credibility on the global financial stage.
But while he seems to have set aside those threats for now, his criticisms of Fed rate policy remain just as pointed.
“We think that it’s a perfect time to lower the rate, and we’d like to see our chairman be early or on time, as opposed to late,” Trump said.


Musk says he’ll dedicate more time to Tesla starting in May as company sees big drop in Q1 profit

Musk says he’ll dedicate more time to Tesla starting in May as company sees big drop in Q1 profit
Updated 23 April 2025
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Musk says he’ll dedicate more time to Tesla starting in May as company sees big drop in Q1 profit

Musk says he’ll dedicate more time to Tesla starting in May as company sees big drop in Q1 profit
  • Tesla’ stock has fallen more than 40 percent this year but rose more than 3 percent in after-hours trading

NEW YORK: Elon Musk says he’ll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced angry protests over Musk’s leadership of a federal government jobs-cutting group that has divided the country.
Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell by 71 percent to to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9 percent to $19.3 billion in the January through March period, below Wall Street’s forecast.
The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s role in the Trump administration. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.
Some Tesla investors have complained that Musk has been too distracted by his role at the Department of Government Efficiency, or DOGE, to effectively run Tesla.
“This is a big step in the right direction,” said Wedbush Securities’ Dan Ives, referring to Musk’s time commitment. “Investors wanted to see him recommit to Tesla.”
Tesla’ stock has fallen more than 40 percent this year but rose more than 3 percent in after-hours trading.
Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable.
“They’re not particularly surprising given that deliveries were down,” Goldstein said, adding that the company is still generating cash. “It was good to see positive cash flow.”
The company generated $2.2 billion in operating cash versus $242 million a year earlier.
Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.
Its closely watched gross margins, a measure of earnings for each dollar of revenue, fell to 16.3 percent from 17.4 percent.
The company that once dominated EVs is also facing fierce competition for the first time.
Earlier this year, Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk.
Investors expect Tesla will be hurt less by the Trump administration’s tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won’t be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes.
Tesla warned that tariffs will hit its energy storage business, too.
“While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive,” the company said, “we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”
Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
The company side business of selling “regulatory credits” to other automakers that fall short of emission standards boosted results for the quarter.
The company generated $595 million from credit sales, up from $442 million a year ago.