Elevate Economics

Carbon credits and tradable pollution permits are in effect markets for the right to pollute. Carbon markets purport to reduce emissions by setting a physical cap on the volume of emissions for a region e.g EU, divided into tradable permits and allocated to firms to be traded on a secondary market; in theory it incentivises firms to cut emissions, switching to renewables, becoming more energy efficient or investing in green tech so that they can sell their pollution permits.

However, firms maybe able to buy carbon credits through carbon offset schemes sold by corporations. This is increasingly involving monocrop plantations in Global South countries to be managed by indigenous farmers intended to sequester (capture) carbon into the soil. Carbon offsets are effectively payments from the world’s largest polluters to the world’s poorest countries to maintain high emissions production and consumption (lifestyles).

More monocrop plantations also maintain the market for GM crop and pesticide that degrades soil, biodiversity and poisons waters and us.

Blue Carbon a Dubai-based company, signed a MoU with the Liberian government for exclusive rights to generate and sell carbon credits on 2.5 million acres of Liberia’s forests: roughly 10 percent of Liberia’s total land area for 30 years and will retain 70% of the revenue from the sale of carbon credits. It has also negotiated several other massive MoUs in Africa and elsewhere.https://www.ft.com/content/f9bead69-7401-44fe-8db9-1c4063ae958c

Accounting tricks: Blue Carbon can sell carbon credits generated by carbon sinks in Africa and elsewhere to governments around the world, enabling them to apply credits towards national emissions reduction targets. It has entered into a partnership with First Abu Dhabi Bank, the UAE’s largest financial institution, to secure funding for the company’s ‘forest conservation’ and carbon credit projects.

37 trillion metric tons of carbon was emitted last year (statista). Only half is taken up by sinks. Reduction is needed not just capture. We need to legislate against ecologically destructive consumption, advertising, planned obsolescence (products with programmed flaws).