In the recent edition of Climate & Capital, Peter McKillop shines a spotlight on two major setbacks in the global battle against climate change. The article explores the challenges facing carbon capture and sequestration (CCUS and CCS) technology in Canada and the unexpected scandal surrounding carbon credits in Zimbabwe. Both of these incidents call into question the effectiveness of these strategies, which have long been championed by major fossil fuel companies. We’ll delve deeper into these issues, shedding light on the complexities and limitations of these climate solutions.
Canada’s Carbon Capture and Sequestration (CCS) and Carbon Capture, Utilization, and Storage (CCUS) technology, despite significant investment, is failing to deliver the promised emission cuts. Since 2021, the Canadian government has provided a staggering $8 billion in subsidies for CCUS and CCS, hoping to make headway in its fight against climate change. However, the reality on the ground paints a rather disappointing picture.
Canada’s collective CCS projects have managed to capture less than 0.05% of the country’s greenhouse gas emissions. This is a shockingly low figure, given the amount of investment poured into these projects. Moreover, the captured greenhouse gas emissions have not all been put to good use. Approximately 70% of the captured emissions have been used for more oil and gas extraction, leading to additional emissions. This approach essentially negates the initial purpose of the CCS projects, which was to reduce the amount of carbon dioxide being released into the atmosphere.
In an equally troubling development on the African continent, an ongoing scandal in Zimbabwe is shedding light on the problematic nature of carbon credits. Carbon credits are a common tool used by large companies to offset their carbon emissions. The system works by allowing companies to essentially buy their way out of having to reduce their own carbon emissions by purchasing credits from projects that are supposed to reduce global CO2 levels.
However, the Zimbabwe scandal involves the sale of non-existing carbon credits. The carbon credit market, having grown significantly over the past decade with more than $2 billion in carbon credits purchased, is now under scrutiny due to these revelations.
Several major companies, including Gucci, Volkswagen, Nestle, L’Oreal, and McKinsey, are potentially holding millions of dollars of tainted carbon offsets due to the scandal. This means that these companies may not have offset their carbon emissions to the extent that they have claimed to, which could have significant implications for global carbon emission levels.
The failure of CCS technology in Canada and the Zimbabwe carbon credit scandal highlight significant issues with the current strategies used to offset carbon emissions. These strategies are failing to deliver the necessary cuts in carbon emissions and are, in some cases, leading to additional emissions. As the world continues to grapple with the urgent threat of climate change, it is clear that new strategies and tighter regulations will be necessary to ensure that carbon offsetting practices are both effective and transparent.
