Carbon credit scheme resulted in more emissions from Russia and Ukraine
According to a new study published by the Stockholm Environmental Institute (SEI), a loophole in the UN's carbon market meant the vast majority of carbon credits generated by Russia and Ukraine did not represent a reduction in emissions. The SEI study estimates that carbon credits may have increased emissions by 600 million tonnes of CO2 in Russia and Ukraine. Under the UN scheme, named Joint Implementation, the two countries were able to sell carbon credits they received for reducing carbon emitting activities, to the EU carbon market, where companies bought the offsets, rather than Russia and Ukraine making their own emissions cuts, which would have been more expensive.
This brief explains why its important to monitor the offshore impacts of commodity trade and production, and recommends how G20 countries can help do it better.