Published Paper Details:

This paper assesses the performance of carbon credit systems in realizing global climate change mitigation goals, notably under the auspices of the Kyoto Protocol and the Paris Agreement. It responds to a relevant research deficit relating to the effectiveness of carbon credits in reducing greenhouse gas emissions and the subsequent effects on climate change. The goals involve investigating the economic advantages that carbon credit schemes can provide to developing nations, for example, generating income and employment, which could improve their acceptance of such schemes. The approach entails a detailed examination of current carbon trading schemes, determining difficulties like implementation of complexities and market failures while evaluating equity issues between developed and developing nations. Key conclusions are that although carbon credit can generate economic growth and sustainability, the main constraints make their effectiveness unlikely without better policy and regulatory instruments. The report focuses on lessons and best practices for future projects to create more efficient and fairer climate measures. The implications highlight the necessity for strong policies to provide favourable conditions for carbon credit trading and to make significant contributions towards worldwide emissions reduction targets.