Recently, ProPublica published a well researched article on the pitfalls of generating carbon credits from forest conservation: “An (Even More) Inconvenient Truth: Why Carbon Credits For Forest Preservation May Be Worse Than Nothing”. The article caused quite a stir and generated a series of responses from REDD proponents.
In 2011, a Swiss company called World Markets AG bought five million “carbon benefit units”. They came from the April Salumei REDD project in Papua New Guinea. World Markets sold the “carbon benefit units” at a profit of over US$5 million.
Earlier this week, Dennis Myles left a comment on REDD-Monitor. Myles had been “approached” by someone calling themselves Timothy Davies, who claimed to work for Verified Carbon Standard (VCS).
There are many reasons not to buy voluntary carbon credits as an investment. The price is likely to fall over time. There is no secondary market. And you’re more than likely to be ripped off when you buy carbon credits.