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Move to 24. The Expectations paradox <> Move to 26. The Profit paradox

Carbon credits attract a diverse range of stakeholders, all driven by good intentions and a shared goal of making a positive impact. Some champion carbon credits as an effective tool for reducing greenhouse gases, while others highlight their potential to drive innovation. Many are motivated by funding opportunities, supporting initiatives such as forest conservation or the distribution of efficient cookstoves, emphasising both social and environmental benefits. Others advocate for technological advancements, such as engineered carbon removals, touting their scalability and long-term durability. Additionally, a group of stakeholders focuses on quality assurance, leveraging remote sensing, satellite-based monitoring, and carbon credit ratings. Finally, countless NGOs and academics, from both the Global North and South, contribute valuable research and insights.

Each stakeholder brings a unique perspective, shaped by their background and ethical values, resulting in varied priorities and goals. In theory, this diversity should foster a dynamic ecosystem of mutual inspiration and learning.

Paradoxically, however, the opposite often occurs. As each stakeholder promotes their vision of what constitutes “high-quality” carbon credits and their ideal use cases, conflicting ideas and approaches emerge. While everyone operates with the best intentions, they ultimately compete for the same funding sources.

Despite a collective commitment to collaboration, the increasing number of well-intentioned actors in the carbon market heightens the risk of unhealthy competition, confusion, misalignment, and mistrust. Furthermore, the resulting disputes lead to a sentiment of carbon credits being controversial, even if the stakeholders agree that carbon credits are a vital tool to combat climate change.

In this series, two leading authorities in carbon uncover the secrets and contradictions of an entire industry – in the most fun and engaging way. Through 26 curated Carbon Paradoxes, you'll learn everything essential about this field, starting with the tensions we must address to make environmental markets thrive.

This article is also published on carbonparadox.org. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.