Category: Money Paradoxes
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Day 16: Control Paradox
This is one of the shortest but most tricky paradoxes. Yes or no, should you fully control how the money is spent on the ground when you buy carbon credits from a project? If your answer is “no,” you risk criticism for allowing potential misuse of funds due to lack of oversight. If your answer…
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Day 15: Standards Paradox
Yesterday, we discussed a paradox around methodologies and science. Today’s paradox deals with the Standards. Everyone agrees: Quality and integrity are key for carbon credits. Not surprisingly, there is an increasing demand for enhanced scrutiny, quality ratings, and additional levels of certification. But here is a twist: Stricter certifications, reviews, ratings and audits increase costs,…
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Day 12: Voluntary Paradox
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Imagine you donate $100 to a charity. Instead of sending a “thank you” card, the charity replies: “Why didn’t you give $200?” This is the essence of the voluntary paradox. Some companies voluntarily adopt climate initiatives that exceed regulatory requirements, driven by a commitment to environmental responsibility. Paradoxically, these efforts often attract criticism for not…
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Day 11: Leakage Paradox
Today, we talk about unintended consequences of well-intended investments – the “spillover effect”. Imagine you buy a forest or a logging concession to protect the trees instead of cutting them. Great, right? But here’s the catch: the company that sold you the land might now cut down a different forest to meet the same demand…
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Day 10: Claims Paradox
Today’s paradox deals with “climate claims”. When companies set bold climate goals but fall short, “greenwashing” accusations are almost inevitable—even if the intentions are genuine. One way to navigate this is, paradoxically, by softening the claims while keeping them engaging. For instance: Saying “We’re fully committed to the goals of the Paris Agreement” is less…
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Day 8: Ambitions Paradox
Today’s paradox is for climate policy fans. It concerns the role of carbon credits within the Paris Agreement. The Paris Agreement mandates governments to increase their emission reduction ambitions consistently. At the same time, Article 6 encourages “voluntary cooperation in the implementation of their nationally determined contributions to allow for higher ambition in their mitigation…
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Day 6: Offset Paradox
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Today, we face a familiar debate: Is carbon offsetting a vital component of a holistic climate strategy that incentivises emission reductions—or is it merely a distraction, potentially substituting real, on-the-ground reductions at the source? The rationale behind offsetting is simple: A company reduces its emissions as much as it reasonably can and then uses carbon…
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Day 4: Speed Paradox
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Today’s paradox is short, as we talk about speed. When it comes to funding a forestry project – in fact, any impactful project – timing is everything. Here is the paradox: If you move too fast, you might cut short essential steps in your due diligence, risking the quality and impact of the project. But…
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Day 2: Polluters Paradox
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Today’s paradox deals with another head-scratcher. Who should buy carbon credits? At first glance, the answer seems obvious: the biggest polluters! After all, they’re at the heart of the climate crisis and have the deepest pockets! Here’s the twist: Polluters purchasing carbon credits are often accused of “greenwashing”—using them as smokescreens to avoid directly reducing…