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Climate change is one of the biggest challenges facing humanity. This blog, based on the first chapter of carboncreditcapital.com’s widely respected Climate Change and Carbon Markets 2023 Report, breaks down the key facts into bite-sized chunks to help you get up to speed on the science and potential fixes, with a focus on carbon credits.

 

Greenhouse Gases Trap Heat and Drive Climate Change

The greenhouse effect is a natural process where gases like carbon dioxide, methane and nitrous oxide act like a blanket, trapping heat from the sun and keeping Earth warm enough to support life. But human activities since the Industrial Revolution have pumped out extra greenhouse gas emissions from burning fossil fuels, agriculture, deforestation and manufacturing.

These extra emissions are dangerously strengthening the greenhouse effect and disrupting the climate system. As concentrations rise, more incoming solar radiation gets absorbed, while less infrared radiation escapes to space. This growing energy imbalance is resulting in rising global temperatures, shifting weather and ocean patterns, melting ice, and more frequent and intense droughts, floods and storms worldwide.

 

A Truly Global Challenge

Greenhouse gases mix uniformly in the atmosphere – emissions anywhere impact people everywhere. So no single country can solve climate change alone. Mitigating climate risks requires cooperation between governments, corporations and citizens worldwide. But because the harms of climate change are distributed unequally, with developing nations bearing the greatest burdens, it’s challenging to align costs and incentives. Overcoming this collective action problem is key to an equitable and effective climate solution like carbon credits.

 

What Are Carbon Credits?

Carbon credits are tradeable permits that give the holder the right to emit a certain amount of carbon dioxide or other greenhouse gases. The total amount of credits issued is limited by caps set by regulators to help meet national emissions reduction targets.

Companies can buy credits from the market if their emissions exceed their allowance. The transfer of permits ensures emissions cuts are made most cheaply by incentivizing reductions in sectors where abatement costs are lower. This market-based approach offers flexibility and reduces the overall economic burden of transitioning to a low-carbon future.

For individuals, purchasing carbon credits is a way to take responsibility for offsetting the emissions associated with daily activities that are difficult to avoid, like home energy use, driving and flying. The funds go towards emissions-reducing projects to counterbalance your carbon footprint. Popular offset types include renewable energy, forest conservation and clean cookstoves.

 

What Are the Effects of Climate Change?

Rising seas

Melting land ice and expanding warmer oceans are causing accelerating sea level rise globally. Coastal cities and islands face risks of flooding and permanent inundation. Between 1901-2018, global sea level rose 20 cm on average. The rate of rise is accelerating.

Hotter temperatures

Most of us can witness that the last decade was hotter than any time in the past 125,000 years, a fact confirmed by 99.9% of all scientific studies conducted on the topic. Our current trajectory guarantees even more heatwaves and less cold snaps. Far from being merely a question of “comfort”, this trend directly impacts the lives of each and every one of us, and global food security as a whole – each additional 1°C of warming decreases grain yields by 10% on average.

Extreme weather

Heavy rainstorms, hurricanes, droughts and wildfires are becoming more intense and frequent due to climate change. One only needs to watch the news on any given day to see how people’s lives are affected worldwide. A warmer atmosphere holds more moisture, fueling more precipitation when it does rain. But it also leads to quicker evaporation and drying between rain events, expanding drought risks.

Shrinking ice

Glaciers and Arctic sea ice are rapidly declining. Since 1980, Arctic sea ice extent has plunged by nearly 50% in summer and fall. Shrinking glaciers threaten water supplies for over 1 billion people worldwide who rely on seasonal meltwater runoff. Melting permafrost damages infrastructure and releases more heat-trapping gases.

Acidic oceans

Increased CO2 absorption makes seawater more acidic, endangering coral reefs and shellfish. Fish populations are shifting as oceans warm, threatening food security for people who rely on seafood.

Biodiversity under threat

Climate change is accelerating species extinction rates. Shifting climate zones will force many organisms to move or adapt. Those that can’t will perish. Nature’s complex web of life will unravel, with ripple effects throughout ecosystems.

Threats to health

Warmer temperatures expand the range of disease-carrying mosquitoes and ticks. Heat waves cause more premature deaths. Wildfires lead to respiratory illnesses. Food and water shortages will undermine nutrition and food safety. Allergies will worsen with more pollen production.

Climate conflict

Scarce resources like food, water and shelter increase conflict risk after climate disasters and in regions suffering water shortages. Millions of climate refugees, such as those escaping the Sahel region in Africa, will further aggravate political tensions between the global North and South. The Syrian civil war is an example of the horrors and suffering we can expect to witness.

Economic impacts

Extreme weather causes billions in damage to homes, businesses and infrastructure. Fighting climate change will require massive investment. But inaction carries an even higher price tag – up to 20% GDP loss by 2100. Transitioning to clean energy now makes economic sense.

 

Which Activities Produce the Most Emissions?

The top emitting sectors globally are:

  • Electricity/heat (31%)
  • Agriculture (11%)
  • Transportation (15%)
  • Forestry (6%)
  • Manufacturing (12%)

Within these sectors, the biggest contributors are:

  • Coal power
  • Gas power
  • Oil/petroleum
  • Industrial processes like cement and steel production
  • Deforestation and livestock
 

The United States, China and India generate nearly half of all carbon pollution.

 

We Can Solve This – Here’s How:

Though daunting, the climate crisis is not hopeless.

The technologies exist today to transition our energy, transportation, building and industry sectors away from fossil fuels and towards clean options like wind, solar, electric vehicles, hydrogen fuel cells, nuclear power, and next generation biofuels.

Natural climate solutions like forest protection and climate-smart agriculture can remove large amounts of carbon from the atmosphere cost-effectively while providing environmental and social co-benefits.

 

Key solutions include:

  • Massively scaling up wind, solar, nuclear power, electricity transmission grids, battery storage and energy efficiency.
  • Phasing out coal power and transitioning to electric vehicles.
  • Slashing methane emissions from oil/gas operations.
  • Protecting and restoring forests, wetlands, grasslands and farmlands to absorb CO2.
  • Investing in innovative new technologies like carbon capture and green hydrogen.
  • Putting a price on carbon through cap-and-trade schemes and carbon taxes to incentivize emissions reductions industry-wide.
  • Expanding the voluntary carbon credit market so individuals and companies can offset their emissions.

By making deep emissions cuts now, we can still limit warming to 1.5°C and avoid catastrophic climate change impacts. But action must start immediately – delay risks irreversible harm. Now is the time to get informed, change habits, contact elected officials and get involved. Our future depends on it!

 

To learn more about the state of Climate Change, Carbon Markets and how these affect each and every one of us, contact us for the full report.

Carbon Footprint

McKibben opts for a small-tent climate movement

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A few months ago I went to a climate change forum at the Center for Brooklyn History. The panel I attended, “Confronting Climate Change: Understanding Deniers,” featured the prominent climate activist, Bill McKibben.

Bill McKibben. Courtesy https://billmckibben.com/.

I was curious to hear McKibben’s take on climate change deniers. I don’t regard the true deniers as a big problem – they’re only 11-15% of our country, according to most polls. Rather, I wondered if McKibben would label as “climate deniers” people who agree that climate change is a significant problem but disagree with his framing and his proposed solutions. I have worked for decades on energy and climate matters as an energy lawyer. Now, more than ever, I believe that to address climate change we need to build a big tent.

In the Q&A I tested where McKibben is on this by asking if he would label as a climate denier someone who subscribes to the main tenets of climate change science yet holds that natural gas has a role to play as a bridge fuel. (Our exchange starts at 1:12:45 of the video.)

This could have been a chance for McKibben to make clear that such a view isn’t climate denialism, even if he feels it’s misguided. But he punted, saying “I don’t care whether they’re deniers or not.” For good measure, he threw in his long-standing refrain that swapping coal for natural gas makes climate change worse, despite coal’s far higher carbon content per unit of energy.

674-MW methane-powered generating station, Salem, MA.

As you can hear in the recording, McKibben’s claim that gas is worse than coal draws on the work of Cornell scientist Robert Howarth. Yet McKibben didn’t mention that Howarth’s work is controversial and disputed by many scientists. The crux of the dispute is whether methane’s impact on warming should be measured with a 20-year or 100-year time frame.

Methane is a relatively short-lived greenhouse gas, with a lifetime of around 10 years, versus the 100-year life applicable to carbon dioxide. But each ton of methane is far more potent while in the atmosphere, trapping roughly 100 times as much heat as a ton of CO2. These cross-cutting facts about atmospheric methane — shorter life but greater potency than CO2 — have resulted in two opposing camps: one insisting on a 20-year timeframe for greenhouse gas accounting, the other adhering to the established 100-year frame. This matters because with a 20-year timeframe, generating electricity with natural gas (which, chemically speaking, is essentially all methane) is more damaging to climate than coal-fired electricity.

McKibben blew past this dispute. To hear him at the Center for Brooklyn History, one would have no inkling that there’s an active disagreement over which timeframe to use, that there are staunch climate activists who favor the 100-year time frame, and that the Intergovernmental Panel on Climate Change  (IPCC) generally uses the 100-year timeframe.

McKibben’s latest (2025) book. Published by W.W. Norton & Company.

McKibben also insisted that a discussion about natural gas’s potential role in mitigating climate change as a replacement for coal is irrelevant because solar “is now our cheapest resource.” McKibben’s claim, of course, suffuses “Here Comes the Sun,” his 2025 book that extols solar power as the cheapest solution for all of our energy needs. But this too is questionable, because it’s based on cost comparisons between solar farms and natural gas power plants (or nuclear power plants) that fail to consider that electricity supply and delivery is a complex system of wires and plants rather than individual power plants. Based on his remarks, McKibben is choosing to ignore studies such as the comprehensive 2025 report from the Clean Air Task Force that concluded that plant-level cost comparison “is a good metric to track historical technology cost evolution [but] is not an appropriate tool to use in the context of long-term planning and policymaking for deep decarbonization.” And the task force is not alone in finding that when electricity is treated as a system, solar loses its place as the cheapest low-carbon resource.

The dogmatism McKibben displayed at the Brooklyn meeting was unfortunate. We’re in a time when efforts to combat climate change are in retreat. A unified front is required to turn the tide. Instead of doubling down on absolutist positions, activists like McKibben who seem convinced that the solution to climate change is all-renewables, end of discussion, should be seeking common ground with others who want climate action but believe that nuclear power and natural gas must also play a role.

NYC Climate March, Sept 17, 2023. Photo: C. Komanoff.

Climate change activists need to build a bigger tent, rather than call anyone who disagrees with their positions a climate change denier. It is striking that McKibben stuck to his guns after saying in the same talk that the most important goal for everyone right now is to help climate change realists win more House and Senate seats in this year’s midterms. As some have noted, an absolutist position on natural gas appears less likely to achieve that win and politicians are following that advice.

Will McKibben evolve? He has demonstrated that he knows how to build a national climate movement centered around issues like divestment. Given the current political situation, he should focus on building an even bigger tent by welcoming all of the 85% who believe that we need to address climate change but do not agree with his ideological positions.

Rich Miller is an energy lawyer who has worked for a variety of stakeholders and now gives walking tours in lower Manhattan on the history of electricity. 

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Carbon Footprint

Rebranding ‘Balcony Solar’ as ‘Guerrilla Solar’ won’t lift its climate value.

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Image generated with Claude. Why have we juxtaposed a bicycle with balcony solar? Read on.

First it was Plug-In Solar. Then it was Balcony Solar. Now it’s Guerrilla Solar, at least according to Inside Climate News, which yesterday proclaimed that The ‘Guerrilla Solar’ Era Has Arrived.

“It,” of course, is Modular solar panels. They’re the hot new photovoltaic solution: cheap enough to buy at Home Depot, easy to hang or prop to catch maximum rays, and small enough to fit on a balcony (if you’ve got one) and plug into your “home grid.” But, alas, too meager a generator of electricity to be more than a bit player in decarbonizing most U.S. homes.

How do I know? I’ve done the math.

A standard, lower-end 220-watt balcony solar array will produce 337 kilowatt-hours a year, or 28 kWh a month averaged over the course of a year. That’s for a 220W unit measuring 3.5 feet by 3.5 feet. (220W x 1/1000 x 17.5% x 8760 hours per year = 337 kWh. Calculation assumes a 17.5% full-year capacity factor, which is arguably generous for New York, where I live. )

Our balcony solar mashup. Top: an install in Germany. Bottom: Home Depot advert.

A typical U.S. home consumes 10,500 kWh a year, or 28 to 29 kWh per day, says Solartech, drawing on U.S. Energy Information Administration data. That puts a home’s daily power needs on par with a balcony solar unit’s monthly output. In effect, once each month the balcony array gifts a homeowner or renter a bit more than day’s full complement of electricity. And earth’s atmosphere gets the same respite: a 3 percent reduction in carbon emissions caused by the home’s electricity usage.

(The 3 percent figure could also be calculated directly by dividing 337 kWh per year of solar production by 10,500 kWh per year to run the home. For bigger or smaller arrays, just prorate your assumed wattage by my 220W; for 440W, say, double my figures.)

Balcony Solar metrics

Why write about balcony solar if it’s so inconsequential? CTC’s mission includes puncturing would-be climate balloons before they ascend too far. In the same vein, we practice quantification to make clear what does and doesn’t move the climate needle. (More on that further below.)

The best way to depict balcony solar’s climate value is to express it in terms of tangible metrics. We’ve selected two. Both assume the basic, lower-end PV array I assumed at the top: a 3.5 foot-square array whose peak output is 220 watts.

1. It would take 50 million 220W balcony solar units (bsu’s) to restore the climate benefit we destroyed in 2020-2021 when we shut the high-performing Indian Point nuclear power plant 32 miles from Midtown Manhattan.

2. A single person cutting back their driving by a mile a day would provide the same climate benefit over the course of a year as a single 220W bsu.

(Calculations in sidebar. Now you know why we led with images of an urban dweller as cyclist and balcony solar user.)

Yes, it’s dense — as befits a sidebar. The numbers tell a story. Follow the color co-ordination.

Ponder that: It would take fifty million smallish bsu’s to level up to the fossil fuel carbon emissions that Indian Point was keeping at bay by supplying the New York City area year in and year out with abundant carbon-free power. Deploying that many balcony solar units would entail 10 bsu’s for each of the 5 million households in the MTA’s service territory. (The Metropolitan Transportation Authority provides subway, bus and commuter rail transit in the five boroughs and seven suburban counties.) Or, if those same households upgraded to 1100-watt bsu’s, collectively they would still make up only half of the lost Indian Point power.

The second comparison, involving driving, is perhaps trickier to grasp but more interesting, since it relates to people’s behavior. Living differently isn’t part of public discourse, at least not in the USA, and especially when what’s being served up is using less. But “reducing,” as we might call it (remember “Reduce, Reuse, Recycle”? or, “Insulate, then Insolate”?) is just as potent for cutting emissions as switching to renewables — even more so when the reducing means driving less, considering the multitude of benefits that accrue from diminishing cars’ imprints on our communities. Still, staying on topic: driving just one fewer mile per day brings about the same shrinkage in carbon emissions as deploying one 220W solar array.

What Balcony Solar boosters are really saying

To be fair, our friends at Inside Climate News and, yes, The New York Times appear to be trying to modulate their balcony solar enthusiasm.

ICN‘s Dan Gearino, whom we cited up front, said he looked to Germany, the birthplace of balcony solar, to see if the units made sense for U.S. households. His takeaway: “It may make more sense financially to spend the cost of plug-in solar on insulation, air sealing or other basic measures to reduce energy use.” Hooray: insulate before you insolate.

Gearino helpfully interviewed renewables guru (and U.S. emigré) Craig Morris, who currently heads Germany’s plug-in solar trade association, Bundesverband Steckersolar. To Morris, balcony solar’s main advantages are that it provides power without taking up land, and that it affords people a way to “become participants in the transition to clean energy.” Behold, guerrilla solar. That, in turn, bolsters “the political consensus that supports the transition.” But Morris also made clear that widespread adoption of plug-in solar would only meet “about 2 percent of Germany’s electricity demand.”

Morris’s “about 2 percent” feels right for Germany. But not for the U.S., where widespread adoption of virtually any individual carbon alternative seems forever out of reach, and where the energy pie is so much larger — think giant fridges, freezers for beer, steroidal homes bursting with piles of powered toys, not to mention industrial and institutional electricity use that Morris correctly excluded from his figure.

Don’t forget to micro-dose. NYT headline + image for David Wallace-Wells’ guest essay (see text). Image by Rui Pu.

Both Gearino and Morris seem more measured than climate journalist Robinson Meyer, founding editor of Heatmap and frequent contributor to The Times, where he wrote about balcony solar in mid-June.

“New zero-carbon power kits will allow Americans to make their own energy choices,” declares the callout to the print version of Meyer’s NYT guest essay, The Tiny Solar Panel That Could Change America. (The even more expansive print headline invites us to “Forget Roofs. Backyard Solar Is the Next Frontier.”)

Wallace-Wells is of two minds. He calls balcony solar “a small way that apartment- and condo-dwelling Americans can take ownership of their energy choices and cut down their pollution on the margins.” No quarrel there, thanks to his qualifiers “small” and “on the margins.” Earlier, though, he opines that balcony solar units “have the potential to change how Americans understand and consume energy,” But read further and you’ll again see Wallace-Wells cautioning that “Balcony solar will play one small role in [the] drama” of transiting to the new world of clean, abundant energy.

Any such caveats are welcome these days, amid widespread solar hoopla. Still, it doesn’t seem to be in Wallace-Wells’ toolkit — or that of Inside Climate News and other mainstream climate journalists — to tutor their audiences as to the  true limits of balcony solar and other panaceas. Just like it wasn’t in their field of vision a decade ago to lay out the true stakes of shutting Indian Point as Riverkeeper was singing its siren song.

What’s Next for NY Balcony Solar

Meantime, as Canary Media reported recently (and helpfully), New Yorkers concerned with climate and affordability are waiting for NY Gov. Kathy Hochul to sign the recently passed SUNNY (Solar Up Now New York) Act legalizing balcony and other plug-in solar. It would be head-spinning (and politically suicidal) if she didn’t, given near-universal support ranging from Con Edison to DSA Assembly Member Emily Gallagher, who told Canary Media, “This is the most popular bill I’ve [ever] worked on.”

My guess is that Hochul is waiting for the right moment, and perhaps the right “package,” that can advance and not undercut her push to launch five large new nuclear power plants around the state — one to be built by the public New York Power Authority, the others to be constructed and operated privately. A little bit of math, a la what we offered here a la Indian Point, might help her out.

The governor also must manage the veritable hot potato of her deferred implementation of the landmark 2019 Community Leadership and Climate Protection Act. She might do well to consider jettisoning the act’s unwieldy cap-and-invest centerpiece in favor of a straight-up carbon tax (with the revenues distributed pro rata to the state’s households) in its place. That, far more than balcony (or guerrilla) solar, could blow open the door to the “innovations and technologies we cannot yet imagine” that Wallace-Wells fantasized about in his Times essay.

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Carbon Footprint

The new SBTi Corporate Net-Zero Standard: what it means for business

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On 11 June 2026, the Science Based Targets initiative (SBTi) published the most substantial revision of its flagship corporate framework since its introduction. The SBTi Corporate Net-Zero Standard Version 2.0 takes effect on 1 February 2027 and reshapes the way companies approach their net-zero targets.

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