WHAT IS GREENWASHING?

 

Greenwashing is the practice in which firms and governments mark all kinds of activities as climate- friendly , as something that would lead to emissions reduction or avoidance of emissions. Many of these claims are unverifiable ,misleading or dubious. The term was fist coined by Jay Westerveld an American environmentalist and researcher.

It helps in boosting the image of the entity , they do nothing to fight against climate change.

Many Multi National companies including oil giants like Shell and Bp , Coca Cola have faced accusations of greenwashing. It is prevalent across a wide range environmental activities.

Often developed counties are accused of greenwashing in their normal business investments in developing countries, by highlighting climate co benefits of financial flows, sometimes with very little justification.

IMPACT OF GREENWASHING

It presents a false picture of the progress being mad on the climate change front , pushing the world towards disaster , while at the same time , rewarding entities for irresponsible behaviour.

It is practically impossible to monitor and verify all.

Many of these Organisations lack integrity and robustness.

EFFECT ON CARBON CREDIT

A carbon credit is a credit for greenhouse emissions reduced  or removed from the atmosphere by an emission reduction project , which can be used by governments industry or private individuals to compensate for the emissions they generate elsewhere. Those cannot reduce emissions can still operate at a higher financial cost. Carbon credits are based on cap and trade model.

IMPPACT

• Formation of informal markets.
• Creates Credibility Issues.

WAY FORWARD

• Corporations pursuing net zero targets must not be allowed to make fresh investments in fossil fuels
• They should also use offset mechanism at start of their journey to net zero status.
• Proper monitoring and regulatory authorities has to be created