Behind the Money

Could COP28 catapult the carbon credit market?

Dec 6, 2023

The podcast explores the potential of the carbon credit market to explode, benefiting different countries. It also discusses concerns about accountability and human rights issues in the unregulated market. The role of the UAE in carbon markets is examined, along with comparisons to Switzerland and Singapore. The challenges of carbon credits in Liberia are explored, including concerns about profit distribution. The risks of expanding the carbon credit market are discussed, including the potential misuse of carbon offsets.

19:06

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Quick takeaways

The expansion of the carbon credit market could lead to significant growth and government involvement, raising concerns about the reliability of carbon credits and the potential for misuse.

As carbon credits gain popularity, vulnerable countries like Liberia face the challenge of establishing legislative frameworks and taxation models to control carbon credit flows to protect their communities and ensure genuine emission reductions.

Deep dives

Blue Carbon's Expansion across African Forest Land

Blue Carbon, a Dubai-based company set up just last year, has garnered attention for striking significant deals with Kenya, Tanzania, Zambia, and Zimbabwe, securing millions of acres of African forest land. Unlike previous resource-extraction practices, Blue Carbon aims to preserve the forests, as it focuses on tapping into the expanding Carbon Credit Market. Carbon credits serve as permits for offsetting greenhouse gas emissions, with one credit equivalent to one ton of carbon removal. The potential market growth and the need for carbon removal to meet climate goals make this a potential win-win situation. However, concerns arise regarding accountability, human rights, and the equitable distribution of profits.

Introduction

2min

Exploring Carbon Credits and the Potential Win-Win Situation

6min

The UAE's Role in Carbon Markets and a Comparison with Switzerland and Singapore

3min

The Challenges of Carbon Credits in Liberia

5min

Concerns and Risks of Expanding the Carbon Credit Market

3min

The UN climate conference COP28 is in full swing, and officials from around the world are discussing ways to combat climate change. The agenda includes questions around how to regulate a market that could soon take off — carbon credits. Right now, these credits serve as a way for private buyers, such as companies and individuals, to offset their emissions. But countries may be able to start using these too. FT climate reporter Kenza Bryan explains the risks that could come with this market expanding.

Clips from CNBC, The National

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For further reading:

The looming land grab in Africa for carbon credits

The cheque book COP: UAE’s $200bn bid for climate influence

Scandal bares the problems of the Amazon carbon credit market

Special report: Decarbonisation

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On X, follow Kenza Bryan (@KenzaBryan) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more.

Read a transcript of this episode on FT.com

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