Carbon Credits and Markets: Risk or Solution?

Carbon credits and markets – Risk or solution?

Carbon credits and carbon markets operate at the intersection of economics, law, finance, ecology, energy, biodiversity, and human rights. As climate change accelerates and our capacity to reduce greenhouse gas emissions remains insufficient, there is an urgent need to explore all available solutions.

This book aims to provide a framework for understanding a critical question: Are carbon credits part of the solution, or do they undermine essential emission reduction efforts?

The work begins by examining the nature of carbon credits and their underlying projects, which invest either in nature-based solutions (forests, soil, and marine ecosystems) or emerging technologies (carbon capture and storage). It then explores the various market mechanisms in operation: emission trading systems, compliance credit markets, and voluntary carbon markets. The analysis extends to the regulatory frameworks governing these markets and their implications for corporate practice.

Rather than overlooking the significant shortcomings that have plagued existing mechanisms, the author encourages critical reflection on potential remedies and the fundamental reform of current evaluation systems, including certification schemes and labelling standards.

The final section decodes the practical impacts of carbon credits on corporate operations and strategy. In conclusion, the author opens a broader discussion on how these mechanisms might be leveraged to support biodiversity conservation.