Energy, Oil & Gas Magazine EOG 215 July | Page 28

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industries that reduce or remove carbon emissions . Consider carbon dioxide removals ( CDRs ), for example . CDRs are technologies or practices that remove carbon dioxide from the atmosphere , such as afforestation , reforestation , and direct air capture . They can play a vital role in a carbon currency system . In such a system , CDRs could offset emissions that cannot be reduced through other means . Industries , such as oil and gas , steel , and cement , for instance , are difficult to decarbonize . Companies in these sectors could purchase carbon credits from a CDR project to offset emissions which could not be avoided , reduced , or replaced . There are challenges associated with the use of CDRs in a carbon currency system , such as measurement , verification , and permanency , but doing so would create a financial incentive for the development and implementation of CDR technologies and practices .
From a profit standpoint , carbon currency could generate revenue for governments , which could be used to fund climate mitigation and adaptation efforts . Sustainable business models are also emerging as novel CDR technologies are beginning to be commercialized . Environmentally speaking , a carbon currency could provide a common framework for countries to work together to address climate change , as they would be able to trade carbon credits with each other . Additionally , by reducing emissions and air pollution , a carbon currency could improve public health and reduce healthcare costs as well .
Barriers to adoption
While carbon currency has the potential to be an effective tool for addressing climate change and promoting sustainable
In some countries , there is a lack of political support to directly address climate change
development , significant barriers to its implementation need to be addressed . For instance , the power of political will cannot be underestimated . In some countries , there is a lack of political support to directly address climate change . In addition , there are concerns that the economic impact may make some governments hesitant to implement a carbon currency . In the United States , for example , the Trump administration rolled back several environmental regulations in addition to withdrawing the United States from the Paris Agreement . While the Biden administration has reversed these two moves , some viewed the initial decisions of the previous administration as signaling a lack of political will to address climate change . Implementing a carbon currency would require a standardized accounting methodology and a reliable system to measure , verify , and track trading . This is difficult to employ and enforce , especially in regions with poor governance .
In addition , not all countries feel equally responsible for the emissions already in the atmosphere or equally at risk of suffering the consequences of climate change . Implementing a standardized carbon currency would require international coordination , and countries ’ diverging interests can make this difficult . In the United Nations ’ climate negotiations countries have struggled to agree on a common approach to addressing climate change , with some nations arguing they should not be required to reduce their emissions if it would hamper their economic development . Resistance from carbon-intensive industries remain as well . Those that are heavily reliant on fossil fuels may resist the implementation of a carbon currency , as it would increase
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