Corporate emission performance and the use of carbon credits
Trove Research, a specialist data, analysis and advisory firm focused on corporate climate action, released a new report in June 2023 that found, “companies that are material users of carbon credits decarbonize twice as fast as those that do not use carbon credits.”
Based on an analysis of data from Trove’s database covering more than 10,000 firms, the 350 companies that used carbon credits from 2017-2022 decarbonized at an average rate of 6% annually, compared to 3% annual reductions for the 3,800 companies that did not use carbon credits. In addition, companies that used more carbon credits tended to decarbonize faster than others that did not use credits.
According to Trove, “the evidence of the last five years strongly suggests that the voluntary purchase of carbon credits provides companies an incentive to accelerate their emission reductions.”