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Carbon Markets: Real Solution or Dangerous Distraction?
The commodification of the climate crisis is leading to questionable results
Carbon credits work like permission slips for emissions. When a company buys a carbon credit, they gain permission to generate one tonne of CO2 emissions. When a company removes a tonne of carbon dioxide from the atmosphere, it can generate a carbon offset. Other companies can then purchase that carbon offset to reduce their carbon footprint. The idea is that carbon markets can reduce greenhouse gas emissions in a cost-effective way. And carbon markets have exploded in the last few years. But, how effective is the market in reducing emissions?
In theory, carbon markets could help decrease emissions without impacting economic activity — which has proven a major obstacle inhibiting tangible climate solutions. That’s a clear benefit of creating a market. By doing so you place a price on carbon as if it were a commodity. This may seem like an odd ‘benefit’ but it helps to translate the problem into the language of capitalism.
The fact that the carbon market is set to be worth an estimated $100 billion by 2030 shows its growing influence. Another benefit is that money generated from the market can help to fund climate projects, often in the developing world. These projects work…
