CONTEXT :United Nations Secretary General has warned private corporations to desist the practice of Greenwashing and mend their ways within a year.The general has also directed to set up an expert group solely to look into the practice.
PRELIM AND MAINS :
What is Greenwashing?
The term greenwashing was first used in 1986 by Jay Westerveld, an American environmentalist and researcher.
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.
While it helps in boosting the image of the entity, they do nothing in the fight against climate change.
Several multinational corporations, including oil giants like Shell and BP, and Coca Cola have faced accusations of greenwashing.
Impact of Greenwashing:
Greenwashing presents a false picture of the progress being made on the climate change front, pushing the world towards disaster, while at the same time, rewarding entities for irresponsible behaviour.
Challenges in Regulating:
The processes and products that can potentially cut emissions are so many that it is practically impossible to monitor and verify all.
Greenwashing Affect Carbon Credits
About Carbon Credit:
A carbon credit (also known as carbon offset) 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 that cannot easily reduce emissions can still operate, at a higher financial cost.
Carbon credits are based on the "cap-and-trade" model that was used to reduce sulfur pollution in the 1990s.
One carbon credit is equal to one metric ton of carbon dioxide