Danny ChenAlmost all human activities produce greenhouse gas(GHG) emissions. Traditionally, it is straightforward to reduce GHG emissions with individual capped emissions. According to where you live, each person will have a different annual emission quota to use. Theoretically, it may work; however, it destroys the mechanism of our global capital market.
Let's say each person is given a 10tCO2e emissions quota to live their life this year.
For GenZ people who work hard to buy themselves a new electric car to support the net-zero transition movement, she could not since the average GHG emissions of new electric cars are 10-50tCO2e.
For mid-career professionals preparing to buy a new 2-bed cottage she cannot because the average new 2-bed cottage is around 80tCO2e.
For a vegan person who had a public transportation accident and needs emergency surgery to save his life, he cannot since the doctor discovered that he already used 8tCO2e and the major surgery will emit 4tCO2e.
The scenario above does not consider entertainment such as sports, arts, music, dance, and travel. People are bounded rationality; if hard-earned money cannot provide us an option to live better with our personal preference, we are discouraged, which will not make our world better in the long term.
Without "Net", zero-emission is impossible.
Voluntary carbon credits backed by the global capital market can foster a net-zero transition and make the "Net" zero happen. The market is not currently perfect; however, it is evolving in a better direction with different stakeholders' engagement. It increases our chance of solving the climate problem with the power of finance and benefits people in the long term.
