Not all carbon credits are created equal. Though all high-integrity carbon credits help reduce or remove global greenhouse gas emissions, the ones generated from local community projects provide benefits that extend beyond the climate crisis.
They could be the perfect option for companies trying to think globally and act locally.
The Neighborhood Advantage
Climate action in areas where you emit goes a long way toward building local goodwill. One ton of emission reductions or removals technically has the same climate impact globally, but can have an outsized impact on local communities.
For example, suppose a company has a large manufacturing facility in Malaysia and engages in Malaysian carbon credit projects to capture methane. The air quality for employees and community members near their facility is directly improved and in doing so, this project helps the company build rapport in the area where it is based.
Additionally, supporting local carbon credit initiatives allows buyers to partner with local governments or NGOs, strengthening ties with regional stakeholders. These partnerships can lead to future business opportunities and yield positive goodwill for a company in its own backyard.
Supporting Local Economies
Local job creation is another benefit of carbon credit projects in your company’s community. Whether through Direct Air Capture or Methane Capture, projects can create dozens of high-quality, community-focused employment opportunities.
Many of these local projects require manual labor, expertise, and ongoing maintenance. From planning and maintenance jobs for reforestation projects to installation jobs for renewable energy projects like solar and wind, these projects can stimulate local economies by creating employment opportunities for residents.
In some cases, labor from carbon credit projects actually proves to be more beneficial to the job market than legacy higher-emission sites. In fact, the World Economic Forum reports that carbon credit projects like ecosystem restoration create 3.7 times as many jobs as coal production per dollar, and building efficiency retrofits create 2.8 times as many jobs as fossil fuels per dollar.
Our recent initiative with JPMorgan Chase helped oil and gas producers permanently shut down old oil wells in Wilmington, a neighborhood of Los Angeles. From cementing and welding to regulatory and trucking, these plugging projects helped bring together local professionals– some of which were former oil and gas industry employees – to accelerate the Los Angeles energy transition.
Verification and Control
Proximity to your carbon credit project also gives companies a greater ability for control and verification. While overseas projects might be harder to monitor, local projects give businesses a more transparent look into the effects of their carbon buying. Close proximity to carbon credit initiatives allows credit buyers the ability to easily engage with and even visit the projects they’re financing. This creates a level of transparency that may be harder to achieve with non-local carbon credit projects.
These verification processes can help ensure social responsibility targets are being met. Corporate Social Responsibility (CSR) is a major pillar for many employers– and those who invest in local carbon credits can demonstrate their commitment to improving their community’s environment by delivering tangible results for stakeholders and investors who prioritize sustainability.
Understanding the additional impact of local carbon credit projects is crucial for prospective buyers to know where they can make the greatest environmental impact. From stimulating regional economies to improving relationships with climate-oriented stakeholders, buying local carbon credits can empower your company to make a major impact, right where you are.
