Have carbon offsets outlived their value proposition? Carbon credits and offsets date back more than 25 years to the Kyoto Protocol in 1997. However, their evolution has been marred by controversies, scandals and politicking, which has resulted in increasing complications and a lack of consensus. With each passing year, carbon offsets are further from delivering the desired outcome.
Carbon credits are being seen as culprits or delaying tactics, rather than incentives, in the formation of a comprehensive decarbonisation strategy. A business-as-usual or do-nothing approach has simply increased the amount of carbon emissions. While the Paris Agreement has superseded the Kyoto Protocol, the modality lacks new market approaches and key issues remain unresolved. There needs to be a mindset shift and G20 dialogue on the usefulness of carbon credits.
