Carbon data is vulnerable to manipulation and often inaccurate.
It’s no secret that the world’s business and policymaking establishment adopted carbon penalties and offsets as a climate-change mitigation approach because it’s a market-driven solution that doesn’t threaten to bring economic productivity to a standstill. In the U.S. — even amid rancorous partisan debate about climate change — a wide majority supports the country’s effort to adopt carbon-neutral policies.
But carbon has a problem. As a metric for success and progress — certainly in the short- to medium-term — it’s seriously flawed. Those flaws have important implications for those who aim to take direct action, and especially for those who hope to redirect the forces of capitalism in the service of a secure climate future.
2. Carbon data at the company level Is flawed and plagued with quality issues: Collecting carbon data carries the assumption that companies affect the environment, but the truth is that climate change is impacting companies in the long run. Here’s an example. As the world economy came to a standstill during the COVID pandemic in 2020, Scope 3 data reported by car companies barely decreased compared with 2019. It’s an unbelievable data point because most people generally stayed home that year.
5. Country-level carbon data is generally underestimated: Research — and high-profile failures — have shown that countries’ carbon data isn’t much better than companies’. Known failures in recent history range from inaccurate reporting of forest-fire emissions by Indonesia to the discovery of fraudulent data designed to manipulate the European Union Emissions Trading Scheme .
In addition, data on estimated emissions provide little information to identify green companies in brown, or high-carbon-emitting, sectors, says a study by Research Affiliates LLC and the University of Augsburg . As a result, they are calling for mandatory and audited carbon emissions disclosures.
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