(Bloomberg) -- Mexican President Andres Manuel Lopez Obrador called for regulation of the country’s carbon offset market in response to a Bloomberg Green investigation that showed oil giant BP Plc is paying subsistence farmers a fraction of market rate.
BP paid just $4 per ton to more than a dozen Mexican communities under an agreement signed in 2021. The project’s own research showed buyers were willing to pay more than double that for offsets, which are now worth an average of $12 to $16 on the market.
Asked at his morning press conference Thursday if the market needed regulation to ensure better pay for landowners, Lopez Obrador replied “Yes, of course,” and said his administration would also look into BP’s project for paying “too little.”
A day after the investigation was published, government officials met with carbon offset standards bodies and called for a “just distribution of benefits.”
After learning about the pay disparity from Bloomberg’s reporting, community members in Coatitila confronted one of the program’s contractors. Weeks later, they were told that BP would be increasing their pay. Leading Mexican environmental nonprofit Pronatura, which runs the project for BP, said they will use a model where the oil giant takes a cut of market rate and the rest goes to the community, but declined to give specific figures.
Read More: BP Paid Rural Mexicans a “Pittance” for Wall Street’s Favorite Climate Solution
©2022 Bloomberg L.P.
BNN Bloomberg Picks
Amazon to buy Roomba-maker IRobot for US$1.65B
BCE CEO sees Q3 boost from Rogers customers jumping ship
Were you affected by recent job cuts in the tech sector? We want to hear from you
'Wait and see': Toronto, Vancouver home sales plummet as buyers hang around
$40M Quebec mansion hits market as luxury home sales brush off higher rates
Cheap date? Finding 'the one' on a budget when everything costs more