In recent years, carbon credits and carbon offsets have been heralded as tools to fight climate change. The pitch is simple: pollute here, offset there. But what if this is less about saving the planet and more about selling indulgences? Are carbon credits truly effective, or are they simply a financial instrument allowing big polluters to continue business as usual — cloaked in an illusion of environmental responsibility?
A Note on History: Carbon Credits and Medieval Indulgences
The idea of carbon offsets echoes an old practice: indulgences in medieval Europe. Back then, people paid the Church to absolve their sins — no real change required. Today, carbon credits allow polluters to do the same with emissions. The comparison may feel dramatic, but it’s worth asking: are we solving a crisis, or outsourcing our guilt?
In recent years, carbon credits and carbon offsets have been heralded as tools to fight climate change. The pitch is simple: pollute here, offset there. But what if this is less about saving the planet and more about selling indulgences? Are carbon credits truly effective, or are they simply a financial instrument allowing big polluters to continue business as usual — cloaked in an illusion of environmental responsibility?
The Origins of Carbon Credits
Carbon credits were introduced as part of international climate agreements, beginning with the Kyoto Protocol (1997) and expanded through the Paris Agreement (2015). The idea was to create a market mechanism to reduce global emissions by assigning monetary value to carbon reductions.
On paper, this market-based solution sounded elegant. But from the outset, critics warned that the system was ripe for manipulation and exploitation.
How the Carbon Market Was Built — and Corrupted
- Complex, Opaque Systems: The verification processes are riddled with ambiguity, making it nearly impossible for the average person — or even experts — to verify if carbon savings are real.
- Phantom Reductions: Multiple investigations have shown that many offset projects count reductions that would have occurred anyway or were grossly overestimated.
- Double Counting and Resale: Some carbon credits have been resold multiple times across different markets and platforms, amounting to financial sleight of hand.
Major Scandals and Revelations
A 2023 investigation by The Guardian, Die Zeit, and SourceMaterial found that more than 90% of rainforest carbon offsets issued by Verra — the world’s largest certifier — were essentially worthless. (Read the investigation)
The European Commission’s 2022 report also expressed concerns over the voluntary carbon markets, highlighting lack of transparency, verification issues, and the risk of fraud.
Corporate Greenwashing: Who’s Really Offsetting?
- Shell, BP, and Exxon: While advertising net-zero pledges, these companies continue expanding fossil fuel exploration while buying cheap offsets to meet PR goals.
- Delta Airlines: Marketed itself as the “first carbon-neutral airline” — a claim now facing lawsuits for misleading consumers.
- Microsoft and Big Tech: Claiming climate neutrality while relying heavily on dubious carbon credits rather than systemic operational changes.
The Human Cost: Land Grabs and Displacement
Carbon offset projects are not without victims. Across South America, Africa, and Southeast Asia, communities have been forcibly displaced from ancestral lands in the name of conservation projects meant to generate credits. For example, in Kenya’s Embobut Forest, members of the Sengwer community were evicted and their homes burned as part of a conservation effort supported by international carbon credit schemes. Indigenous leaders have reported violations of human rights and cultural destruction, all while corporations profit..
The Science vs. Marketing
Nature-based offsets typically include efforts like afforestation (planting trees), reforestation, and protecting existing forests. While these can have environmental benefits, scientists argue they are not equivalent to directly reducing emissions at the source.
A 2022 report by Carbon Market Watch warned that offsets risk undermining real climate action. Scientists argue that nature-based offsets (like tree planting) cannot compensate for the billions of tons of fossil fuels extracted and burned every year. Climate change mitigation requires reduction at the source — not symbolic gestures.
The Censorship Problem
Researchers and NGOs raising concerns about carbon markets have been pressured, defunded, or discredited. For instance, the NGO Survival International reported being denied funding after publishing criticisms of conservation-linked carbon offset schemes that displaced Indigenous peoples. In academia, researchers like Larry Lohmann have documented the obstacles faced when challenging mainstream carbon trading frameworks, including limited access to publication and industry pushback.
Why Are Carbon Credits So Appealing?
The concept appeals to consumer psychology — offering a convenient, feel-good action that allows individuals and corporations to avoid more challenging choices.
Time for a Critical Mindshift
What if carbon credits are not only ineffective but dangerous distractions? What if they’re not mitigating climate change but enabling its continuation under the guise of progress?
We must ask: Who benefits from maintaining this system? Who profits from selling absolution while the planet continues to warm?
What’s Next?
This article is part of our Hoax Series, where we challenge mainstream narratives and ask: Who benefits, who profits, and what’s being hidden?
Further Reading
Scientific Reports & Investigations:
The Guardian’s 2023 Carbon Offset Scandal Investigation
Reveals that more than 90% of Verra rainforest offsets were worthless.
EU Carbon Market Report: driving emission reductions and enabling climate and energy investment (2022)
Raises concerns over transparency and fraud in voluntary carbon markets.
Recommended Books:
The following books are linked to Amazon.com for your convenience. If you decide to purchase through these links, we may earn a small commission — at no extra cost to you.
Green Gone Wrong: Dispatches from the Front Lines of Eco-Capitalism [amazon.com]
By Heather Rogers
Exposes how well-meaning environmental solutions are being corrupted by profit motives.
Carbon Colonialism: How Rich Countries Export Climate Breakdown [amazon.com]
By Laurie Parsons
This book explores how global carbon markets and offset schemes often displace communities and outsource environmental damage to the Global South, while maintaining the illusion of sustainability in wealthier nations. It’s a strong, evidence-based critique of carbon trading’s neocolonial dimensions.
Recommended Videos:
Michael Moore Presents: Planet of the Humans
A controversial but thought-provoking look at the failings of green energy and offset schemes. Watch here
The Carbon Credit Hoax: Offsetting Reality or Selling Guilt? is part of our Hoax Series, where we examine accepted beliefs, hidden interests, and ask the uncomfortable questions others won’t. Discover more at CriticalMindshift.com/hoax-series.
Image acknowledgment
The featured image on this page was inspired by ChatGPT and then created using Canva.com.
