For a long time, companies have relied on carbon offsets as their main corporate climate action. Carbon offsetting made sense, but only largely because most of the companies' global supply chains are so complex that it would be costly to track the respective carbon emissions throughout the companies' operations.

However, the unstandardised accounting and lack of transparency in funded project outcomes means that carbon offsetting is often used as a tool for greenwashing by companies who want to be seen as if they are taking actions towards the climate crisis.

But not for much longer, perhaps. According to BloombergNEF's forecast of carbon offset prices in January this year, the average price per ton of carbon could jump from US$2.50 today to US$120 by 2050, if global regulators walk their talk to shake up the shady standards. If that is the case, companies will be more inclined to directly reduce their emissions instead. Which is just as well, as more companies are joining the Science Based Targets initiative to take actual actions to reach net zero.

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