REDD+ credits are intended to incentivize forest conservation and thus reduce carbon emissions. However, over the years several concerns have emerged about this mechanism:

1. Problems of Additionality: There were cases where forest areas protected by REDD+ were not actually threatened by deforestation. In such situations, no emission is effectively avoided.
2. Beaching (leakage): While a forest area might be protected, deforestation activities might simply be moved to another area.
3. Permanence: There is concern that forests protected today may be cut down in the future, releasing stored carbon again.
4. Social Problems: There have been reports of indigenous and local communities being evicted or losing their traditional rights to land due to REDD+ projects.
5. Double-counting: There is concern that emission reductions are counted by both the country hosting the REDD+ project and the entity (often a country or company) purchasing the carbon credit.

It should be noted that many of the most challenged projects are older ones, which used more permissive protocols. Through experience and criticism received, these protocols have been revised and tightened over time.

VERRA (Verified Carbon Standard) is an organization that seeks to address these and other concerns through rigorous standards and independent verification of emission reduction projects. Regarding REDD+, VERRA introduced the “VCS Jurisdictional and Nested REDD+” (JNR), a holistic approach that aims to integrate specific REDD+ projects within broader jurisdictional frameworks (often at the national or subnational level). This allows issues such as clearing to be addressed and ensures that avoided emissions are real and permanent.

In addition, VERRA is working with other organizations to ensure the participation of local and indigenous communities, to ensure that their rights are respected, and to promote social and environmental benefits beyond simply reducing carbon emissions.

Continued efforts to improve protocols and ensure fair and sustainable implementation of projects show that although there have been concerns related to REDD+, there is also great potential when they are implemented correctly.

The ETS, which stands for “Emission Trading System,” is a market mechanism introduced to reduce greenhouse gas emissions. Through the ETS, companies receive or purchase emission allowances (permits) that represent the right to emit a specific amount of CO2 or other greenhouse gases. If a company emits less than the allowed amount, it can sell its excess quota to other companies. If, on the other hand, it exceeds the set limit, it must buy additional allowances in the market or pay penalties. The goal of the ETS is to incentivize companies to reduce their emissions in a cost-effective manner by setting a price for carbon through the law of supply and demand.

VCU stands for “Verified Carbon Unit” and is a unit of measurement that represents one metric ton of carbon dioxide equivalent (CO2e) reduced or removed from the atmosphere, verified by independent bodies. It is used in voluntary carbon markets to represent a verified reduction in greenhouse gas emissions.

Verified Carbon Units (VCUs) represent verified carbon credits that attest to the reduction or removal of one ton of CO2e. If your company has purchased VCUs as part of its sustainability strategy, you can include them in the Corporate Sustainability Report. This enables the demonstration of a tangible commitment to reducing greenhouse gas emissions and offsetting the carbon footprint. However, it is critical that the purchase and use of VCUs be documented and reported in a transparent manner consistent with international standards and guidelines on emissions accounting and reporting.