How carbon markets systematically undervalue tropical forests’ climate benefits
| WRI | 2023 | Communication | https://files.wri.org/d8/s3fs-public/2023-05/how-carbon-markets-systematically-undervalue-tropical-forests-climate-benefits.pdf?VersionId=yYAOP6XehL83TKbsC8shjjoM1LjsotpAbstract
In light of the critical role of tropical forests in stabilizing the global climate system through both carbon and noncarbon pathways, maintaining and increasing incentives for large-scale forest conservation is an essential component of climate action. Demand for carbon credits, one of the most promising mechanisms for funding large-scale forest conservation, has grown rapidly in recent years, with the voluntary carbon market seeing transactions worth almost US$2 billion in 2021. In 2022, however, the volume of transactions leveled off, at least in part due to concerns about reputational risk from corporate buyers afraid of greenwashing accusations.