Abstract:
Climate change poses a significant threat to the planet, driven primarily by the
accumulation of greenhouse gases (GHGs) in the atmosphere. Human activities,
including fossil fuel combustion and deforestation, have contributed to this alarming
trend. In response, international agreements like the Paris Agreement have been
established to limit global temperature rise. One mechanism to achieve these goals is
through carbon credits, which quantify GHG emissions reduction, avoidance, or
removal. A study that examines the global carbon credit systems, evaluates its
applicability at the local level, and proposes strategies for integration into local
planning processes. The global carbon credit system operates within cap-and-trade or
emissions trading schemes, allowing entities to buy or sell credits to comply with
emission limits. Carbon credits are measured in metric tons of CO2 equivalent (CO2e)
and enable organizations to offset their emissions by investing in emission reduction
projects elsewhere. Understanding the structure and mechanisms of this system is
crucial for effective climate change mitigation. This study employs a three-pronged
approach. First, it conducts a comprehensive review of the global carbon credit
system, analysing its structure, key players, and crediting mechanisms. Second, it
assesses the potential for carbon credits at the local level by evaluating feasible
carbon reduction projects within local planning contexts. Finally, the research develops
strategies for integrating carbon credits into local planning processes, considering
institutional frameworks and potential economic and environmental co-benefits. The
findings suggest that carbon credits offer a promising avenue for mitigating climate
change at both global and local levels. By understanding the intricacies of the carbon
credit system and evaluating local context, municipalities and organizations can
leverage this mechanism to achieve emission reduction goals. Recommendations
include fostering partnerships between local governments to implement carbon credit
projects effectively. Additionally, policymakers should consider incentives to
encourage participation in carbon credit initiatives, ultimately contributing to more
sustainable development pathways.
