The limitations of the carbon credit system

Carbify is a company that has introduced a disruptive model for carbon credits to the market, which is desperately needed. Deforestation is a major issue that accelerates the worsening of climate problems. Carbon credits have often been met with scepticism due to numerous cases of fraud in recent years. Therefore, there is a real need to replant more bio-diverse vegetation coupled with a fair and solid alternative for carbon credits.

The key problems Carbify currently identifies in the market:

• Lack of Transparency Many carbon credits are difficult to trace, and it’s often unclear whether they genuinely contribute to CO2 reduction. The effectiveness of some projects is hard to measure, which undermines trust in the market.

• Greenwashing Some companies use carbon credits that, in reality, offer no real climate benefits. These credits may not make a positive impact, yet the company in question claims they do, resulting in greenwashing. There are now substantial penalties for this practice.

• Double Counting of Emissions At times, the same carbon credits are claimed by multiple parties, leading to an overestimation of actual emission reductions.

• Quality The quality of projects generating carbon credits varies widely. Some, like reforestation or energy-saving initiatives, deliver tangible benefits, while others are less reliable or sustainable. Low-impact credits can still be sold.

• Certification The verification process for carbon credits can be expensive, slow, and unreliable. The criteria for certifying projects aren’t always consistent, resulting in variability in the quality of credits.

• Ethical Issues Certain carbon credit projects, especially in developing countries, raise ethical concerns. For instance, indigenous communities may be displaced to make way for large-scale reforestation projects, or the benefits of the projects may not reach local populations.

• Effectiveness There are significant differences between various types of replanting. Monocultures, for instance, can deplete the soil, causing long-term environmental damage.

Carbify offers a robust solution that addresses all the known challenges associated with carbon credits.

We explain this solution step by step:

• The planting process (biodiversity is key)

• Unique carbon standard

• A technical platform for validation and transparency

• Compensation and backup solutions