Construction of a controversial carbon credit project near Lake Kariba in Zimbabwe. Zinyange Auntony / AFP via Getty Images via Grist

This story was originally published by Grist and is reproduced here as part of the Climate Desk collaboration.

Proponents of the voluntary carbon market say it’s a mechanism not only to advance sustainability goals, but also to funnel much-needed cash to some of the world’s poorest countries.

The idea is that companies seeking to “offset” their climate footprint will help pay for the development of projects that sequester or prevent greenhouse gas emissions—endeavors like planting trees to suck carbon out of the atmosphere, or protecting forests that were ostensibly in danger of being chopped down. These projects, which generate exchangeable “credits” representing 1 metric ton of greenhouse gas emissions each, come with the promise of jobs for local residents, and project developers often pledge to devote part of their revenue to public infrastructure like schools.

In Africa, the voluntary carbon market is “a powerful means to address climate change and uplift communities,” according to one nonprofit that writes nonbinding standards for the sector.

It’s increasingly unclear, however, whether that narrative holds up to scrutiny. A series of reports published since last November by the nonprofit Carbon Market Watch, or CMW, has highlighted a near-total lack of published research on how much money flowing into the carbon market actually winds up supporting climate mitigation projects or reaching local communities. One report called attention to a lack of fair and transparent benefit-sharing agreements, clauses in projects’ design documents that detail how they will distribute revenue and nonmonetary benefits to people they affect.

Most recently, an analysis published by the group last week found that, while most carbon credit projects are located in poor countries, they are largely controlled by companies based in wealthier North American and European countries. The authors said there is “no evidence” that the voluntary carbon market, or VCM, brings economic benefits to communities where projects are based, a point that human rights and environmental groups have long been making.

“Rich countries are passing the burden of climate action from rich to the poorest........

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