RLMT500 Week 7 Discussion

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American Public University *

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500

Subject

Economics

Date

Jan 9, 2024

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docx

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4

Uploaded by BarristerTapirPerson186

Good afternoon fellow classmates and professor, The implications of carbon offsets is a divided topic, and the opinions that favor or argue against it as a method to reduce greenhouse emissions and climate change differ broadly. These opinions can be influenced by an array of factors that include the amount of environmental awareness, economic considerations, political agendas, societal values, and level of understanding of carbon offsets. The concept of carbon offsets appears promising in theory, offering potential benefits. However, when practically implemented, carbon offsets might present sustainability challenges that could lead to criticisms, challenging the efficacy of this method as a means to reduce environmental emissions. Arguments in Favor of Carbon Offsets Those in favor of carbon offsets argue that it promotes renewable energy projects. In the article “Biodiverse Planting for Carbon and Biodiversity on Indigenous land” by Renwick et al. (2014), the authors suggest that by investing in environmental projects, companies can promote reforestation initiatives, soil carbon sequestration, savanna fire management, and creating biodiversity. This has been advantageous to local Indigenous communities by providing them with long-term support for sustainable developments, culture, and their economies. In addition, carbon offsets can also provide financial incentives to companies, landowners, and other participating parties involved. Author Schmidt (2009) mentions in the article “Carbon Offsets: Growing Pains in a Growing Market” that Businesses and landowners can use carbon credits to offset their own emissions or be sold on carbon markets to other businesses that need to offset emissions. The revenue generated from selling these carbon
credits can also be used to fund sustainability projects like the reforestation efforts described in the article. Additionally, by increasing biodiversity and ecological health, the land value increases for landowners from carbon offset projects. Arguments Against Carbon Offsets One example of a carbon offset is to generate carbon credits that can be sold, traded, and used to offset emissions in the investing country. Carbon credits were designed as a financial instrument to drive reducing greenhouse gas emissions from government and regulatory bodies imposing cap-and-trade systems, setting the limit on the amount greenhouse gases that can be emitted ( Holtsmark & Weitzman , 2020). Therefore, those who are against carbon offsets argue that without financial incentives, such as carbon credits, these offsets would not occur to reduce carbon emissions. They believe that the primary motivation behind offsetting carbon emissions is not genuine environmental concern but rather the financial benefits or competitive advantage it offers to companies, which presents verification issues. This further presents the additional argument of not addressing the root cause of climate change because carbon offsets focus on reducing emission in the short-term, versus trying to resolve the underlying issues in a systemic manner, which are driving the environmental impacts. For example, “leakage” can occur when an offset project reduces emissions in one area, but causes an increase in emissions in another area, thereby not really reducing emissions overall. ( Schmidt, 2009). Lastly, the issue of not providing adequate co-benefits to local Indigenous communities is another argument that can manifest from carbon offsets. For instance, Renwick et al. (2014) discussed that carbon forestry can result in the loss of traditional Indigenous livelihoods and land-use practices, as well as the spiritual and natural values of the
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