Historical context and examples

World Development Report: carbon emission associated with providing electricity to 1.6billion people currently without access would be equivalent to switching fuel economy standards for 40 million SUVs in the US to those of cars in EU

Why Carbon Credit system is bad?
The world must incentivise green growth activities as “Green Credit” instead of Carbon Credit Mechanism, which provides a way out for the Emitter to get rid of the blame of pollution by paying for the emissions.
Two things which should be focused:
  • Lifestyle issues – where developed countries were urged to check unsustainable consumption practices
  • Climate Justice – focussing on the environment rights of the people in developing and underdeveloped nations
Why CDM market is low now?
The demand supply mismatch and low ambition for emission reduction expressed by developed countries led to the slowdown of the well-established CDM market