What kind of corruption risks does the carbon market pose? What strategies can be used to mitigate these risks?
To provide an overview of the corruption risks in the carbon market and assess some of the strategies in place to mitigate these risks.
The carbon market and how it works
Environmental integrity in the carbon market
Financial integrity in the carbon market
As a new market with a developing architecture, the carbon market has proven susceptible to corruption and other integrity risks. These risks are significant, because any attempt to undermine the carbon market jeopardises one of the major elements of our global response to climate change.
This paper examines these risks and the carbon market’s vulnerability in terms of both its environmental and financial integrity.
It concludes each section with an overview of some of the mitigation strategies in place to reduce corruption and ensure that the carbon market functions to fulfil its ultimate aim: to reduce greenhouse gas emissions.