The World Bank and partners, including Singapore, launched a worldwide tracking system in an effort to clear up the opaque carbon credit market and assist developing countries in promptly and more effectively obtaining much-needed climate finance. In order to help polluters reach net-zero emissions and slow global warming, carbon credits are sold to them to offset their emissions. These credits are produced through activities like planting trees and eliminating climate-damaging carbon dioxide from the atmosphere.
While governments dispute the criteria for exchanging so-called compliance credits, projects to generate new credits are being launched, and countries are establishing registers to track them. Additionally, there have been private initiatives that sell credits for “voluntary” carbon markets, and a number of registries, like Verra and Gold Standard, are accrediting and regulating them. The voluntary market, at $2 billion, has remained modest. Critics raise issues include lack of market transparency, a shortage of credit, and concerns about quality of projects.