FAKE: Carbon credit is the commodification of the forest

Commodities are products sold on a large scale that follow international standardization. For example, every sack of soybeans is the same, regardless of its origin. Carbon credits are similar in that they all represent one ton of carbon dioxide or equivalent greenhouse gas. But their origin sets them apart from one another.

Each project has unique characteristics, defined by the region where it is located, the people who live in and around the area, their history, culture, needs and dreams, the forest and agricultural products, the threats posed by deforesters, illegal miners, loggers, etc., the fauna, flora, water sources, climate, and countless other conditions. All of this is described in the project design document, which contains hundreds of pages and follows a sophisticated methodology involving environmental and forest engineering and management, geography, biology, anthropology, economics, law, and other disciplines.

Carbon credits are sold on the market over the course of decades, and price variations are natural. But the projects are designed to support the development of human capital among local communities, so that they don’t need to deforest and don’t depend solely on revenue from carbon credits — enabling them to build diversified and resilient income streams to withstand potential price fluctuations.

And most importantly: the forest is not sold. On the contrary — carbon credits are only issued once it has been proven that the forest remained standing during the corresponding period, generally year by year.