Critical or concerning? Cop28 debates role of carbon markets in climate crisis

Supporters say carbon credits can fund solutions, but others say they allow companies to avoid reducing emissions

Government officials, conservation organisations and industry groups have sought to revive confidence in the unregulated voluntary carbon market at Cop28 amid concerns it does little to mitigate the climate crisis or the destruction of nature.

Supporters of carbon markets say that through buying high-quality credits, countries and companies can transfer some of the billions of dollars required to fund nature-based solutions, support Indigenous communities, phase out coal power, and pay for new renewables in developing countries. Initiatives are under way to certify successful carbon projects and curb greenwashing claims from companies that buy credits, although there is disagreement about the appropriate role of offsets in a company’s sustainability efforts.