Exergio has created a report that considers the pitfalls of the carbon offsets market, showing how it allows greenwashing rather than sustainability.

With the EU's directive to ban misleading environmental claims on the horizon, true independent sustainability certification a missing ingredient. As Donatas Karčiauskas, CEO of Exergio explains: “Originally intended to advocate for nature and sustainability, carbon emission offsets have instead become a tool for creating a false facade of corporate sustainability, often without substantive action. The unregulated nature of the market only exacerbates these concerns, leaving many frustrated with its misleading results in terms of reducing CO2 emissions."

Initially designed to offset greenhouse gas emissions by investing in projects such as reforestation and renewable energy, the market has failed to significantly impact the environment as intended, for example, it is possible that up to 90 per cent of rainforest carbon offsets may be ineffective according to the journal Science.

The carbon offsets market is also under scrutiny for becoming more profit oriented. With its current valuation surpassing $2bn and growing rapidly, concerns arise that this expansion could prioritise financial gain over genuine environmental stewardship.

Overall, the issue is as much about whether the market can build trust as much as its effects, in a world where perception is reality.

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