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Laundering Carbon and the New Scramble for Africa
Hanieh, Adam
http://climateandcapitalism.com/2024/08/11/laundering-carbon-and-the-new-scramble-for-africa/Date Written: 2024-08-11 Year Published: 2024 Resource Type: Article Cx Number: CX25191 The carbon offset market is an integral part of efforts to prevent effective climate action. Most carbon credits traded today are fictitious and do not result in any real reduction in carbon emissions. Abstract: - Beyond their potentially destructive impact on local communities, Blue Carbon’s activities in Africa point to a major shift in the climate strategies of Gulf states. As critics have shown, the carbon offsetting industry exists largely as a greenwashing mechanism, allowing polluters to hide their continued emissions behind the smokescreen of misleading carbon accounting methodologies while providing a profitable new asset class for financial actors. As the world’s largest exporters of crude oil and liquified natural gas, the Gulf states are now positioning themselves across all stages of this new industry—including the financial markets where carbon credits are bought and sold. This development is reconfiguring the Gulf’s relationships with the African continent and will have significant consequences for the trajectories of our warming planet. There are many varieties of carbon offset projects. The most common involves the avoided deforestation schemes that make up the bulk of Blue Carbon’s interest in African land. In these schemes, land is enclosed and protected from deforestation. Carbon offset certifiers—of which the largest in the world is the Washington-based firm, Verra—then assess the amount of carbon these projects prevent from being released into the atmosphere (measured in tons of CO2). Once assessed, carbon credits can be sold to polluters, who use them to cancel out their own emissions and thus meet their stated climate goals. Superficially attractive—after all, who doesn’t want to see money going into the protection of forests?—such schemes have two major flaws. The first is known as “permanence.” Buyers who purchase carbon credits gain the right to pollute in the here and now. Meanwhile, it takes hundreds of years for those carbon emissions to be re-absorbed from the atmosphere, and there is no guarantee that the forest will continue to stand for that timeframe. If a forest fire occurs or the political situation changes and the forest is destroyed, it is too late to take back the carbon credits that were initially issued. This concern is not simply theoretical. In recent years, California wildfires have consumed millions of hectares of forest, including offsets purchased by major international firms such as Microsoft and BP. Given the increasing incidence of forest fires due to global warming, such outcomes will undoubtedly become more frequent. Again, this estimate depends on an unknowable future, opening up significant profit-making opportunities for companies certifying and selling carbon credits. The second major flaw with these schemes is that any estimation of carbon credits for avoided deforestation projects rests on an imaginary counterfactual: How much carbon would have been released if the offset project were not in place? Again, this estimate depends on an unknowable future, opening up significant profit-making opportunities for companies certifying and selling carbon credits. By inflating the estimated emissions reductions associated with a particular project, it is possible to sell many more carbon credits than are actually warranted. This scope for speculation is one reason why the carbon credit market is so closely associated with repeated scandals and corruption. Subject Headings |