How classic Nike Airs uncovered a flaw in a $700 million carbon market

By
Bloomberg

Revealed

October 29, 2024

Nike executives made a startling discovery within the early Nineteen Nineties.

The gasoline pumped into the soles of the Nike Air collection of athletic sneakers created an exceptionally resilient cushion. However the giant, tightly-linked molecules of sulfur hexafluoride additionally make it the planet’s strongest greenhouse gasoline — 24,300-times stronger than carbon dioxide. Air Jordans and Nike Inc.’s different common sneakers, it seems, had been overheating the planet as a lot as half the automobiles in its house state of Oregon.

Bloomberg

The sneaker big spent tens of tens of millions of {dollars} over the subsequent 14 years to discover a substitute, finally declaring in 2006 that it had eradicated all heat-trapping gases from its sneakers. As a substitute of fading into the annals of local weather historical past, nevertheless, Nike’s decades-old environmental drawback has instantly change into related once more — and it’s exposing a key weak spot in at the moment’s carbon market.

That’s as a result of Nike, because it completed its gasoline substitution work twenty years in the past, determined to show its sulfur hexafluoride reductions right into a carbon-offset venture. This allowed the corporate to promote credit for its eradicated emissions to different entities, who might then subtract that quantity of air pollution from their very own environmental experiences. Nike was awarded almost 8 million carbon credit — roughly equal to the annual emissions of a giant coal plant — by the predecessor to the American Carbon Registry (now referred to as ACR), certainly one of a handful of nonprofit registries that underpin the carbon market.

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