Assam’s Nalbari-born scientist charged in U.S. carbon-credit fraud scheme

Tridip Kumar Goswami, a researcher from Samarkuchi in Nalbari district has been charged in the United States for his involvement in a carbon-credit fraud scheme. U.S. federal prosecutors allege that Goswami, the former head of carbon and sustainability accounting at CQC Impact Investors, manipulated data to falsely secure carbon credits worth millions of dollars. The scheme allegedly helped the firm deceive investors into pouring over $250 million into the company.

Goswami, an accomplished scientist with a Master’s in Chemistry from Gauhati University and another in Energy Technology from Tezpur University, had an early career in hydrogen energy research at India's prestigious Central Electrochemical Research Institute. His expertise brought him to CQC, a global firm that profits from projects generating voluntary carbon credits by claiming to reduce emissions through initiatives like clean cookstoves in rural Africa and Southeast Asia.

In a statement released by the prosecutors based in the United States concerning their criminal case against Goswami, between the years 2021-2023, he and Kenneth Newcombes the former CEO of CQC committed manipulation of figures to enhance the level of achievement of the projects by CQC. Some of the projects included the clean-cookstove initiatives in rural Africa and Southeast Asian countries that were meant to help reduce carbon emissions. Instead, the two are accused of bringing inflated reporting of the successes of the projects which ended in the illegitimate issuance of millions of dollars worth of carbon credits.

These inflated carbon credits were sold to investors, misleading them into thinking the company was significantly reducing emissions. This manipulation ultimately persuaded investors to put over $250 million into the firm.

The U.S. Department of Justice has charged Goswami and Newcombe with several offenses, including wire fraud, commodities fraud conspiracy, and securities fraud conspiracy. Although CQC, the company itself, has avoided criminal charges due to its cooperation with authorities and efforts to address the situation, the individual executives involved are facing prosecution. Jason Steele, CQC’s former Chief Operating Officer, has already pleaded guilty to his part in the scheme and is now assisting the U.S. government.

This case has severely impacted the credibility of the voluntary carbon-credit market, which is already grappling with doubts about the legitimacy of carbon credits. These credits, typically bought by companies to offset their emissions, are meant to reflect real, measurable reductions in greenhouse gases. The alleged fraud involving CQC’s executives has exposed weaknesses within the market, raising questions about the effectiveness of carbon-credit programs as they currently stand.

While Newcombe’s legal team has denied the allegations, asserting that he is battling cancer and confident of being cleared, Goswami’s representatives have not yet made a public statement regarding the charges.

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