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One could even argue that the prices in the voluntary market are too low because of the low-quality loans that are in the market so far.
It is important not to confuse these markets, as these two markets do not influence each other and are priced differently. In the voluntary market, prices are determined by the buyer, who decides how much he is willing to pay for a particular loan. And it can be influenced by various factors, such as the type of project, complementarity, what additional benefits come with the project.
– Bad loans are related to the so-called “greenwashing”, do I understand correctly?
The term ‘greenwashing’ is used to denote the behavior of companies when they present themselves in marketing activities as environmentally concerned and climate-responsible companies, but in reality do not take any environmental protection measures.
– How urgent is this problem now?
It has existed before and still exists today. There have also been cases of fraud. But now it looks like structures are being put in place to contain these bad players, so to speak. And it goes from education to real market regulation. How it can be checked and what can be done about it is exactly our job. “Arbonics” as a project developer can ensure that the created credits are of high quality. And we’re also seeing that buyers want that because customers are looking and asking where is it grown, what’s grown, what does it look like, what’s next? For example, if I’m not mistaken, there was a project in the USA not related to afforestation, but to the fact that they would not cut some pieces in the clear-cut. But in the end, their overall situation was evaluated and it was concluded that the project had not brought any benefit, because the place was already protected before that and it was not possible to cut there anyway.
