Summary
Stuart Rowland, founder and CEO of Revalue, argues that the long-held view of carbon credits as fungible commodities is limiting the growth, innovation, and integrity of carbon markets. Rowland suggests that a product-based approach—where credits are differentiated by quality, durability, and impact—could unlock a new era of credibility and performance in the carbon economy.
Key Points
In a detailed commentary, Stuart Rowland of Revalue challenges the decades-old model of treating carbon credits like crude oil, that is, as commodities. While commodity framing helped the market gain early traction, he argues it has since stifled innovation and resulted in a race to the bottom on quality, with developers focused solely on meeting basic certification standards.
Rowland observes that despite sharing the same verification stamp, carbon credits vary widely in quality, scientific rigor, and market value – a clear sign they are not true commodities. With credits ranging from $3 to over $300, the current pricing reflects a hidden diversity in attributes underscoring that credits are not a commodity.
He warns that by continuing to optimize for certification, the market overlooks the potential for deeper impact. Instead, Rowland advocates for a new paradigm: viewing carbon credits as products. Under this model, certifications would serve as the floor, not the ceiling. Developers would be incentivised to go beyond minimum requirements, buyers would demand higher standards, and both parties could collaborate more closely to shape credits that are credible, innovative, and rooted in cutting-edge science and technology.
Citing examples like LiDAR-based biomass monitoring and long-duration carbon storage, Rowland envisions a future where carbon credits evolve rapidly – just like any first-generation product does. “We must go further,” he says, calling on the industry to embrace the headroom for innovation and rebuild trust through transparency, rigor, and ambition.
Source: Green Business Journal
