On paper, carbon credits offer a clever workaround: let companies offset their emissions by funding green projects elsewhere. In reality? They’ve become a hotbed of loopholes, deception, and profit.
Carbon credits were introduced in the late 1990s as part of international efforts to curb climate change, originally meant to offset greenhouse gas emissions by funding environmental projects elsewhere. But in practice, many of these credits don’t represent real, measurable reductions in emissions. Instead, they’ve become get-out-of-jail-free cards for big polluters — a way to keep doing business as usual while looking good on paper.
A recent Science News investigation raised red flags about the effectiveness of these programs — questioning whether they’re truly reducing emissions or simply creating the illusion of action.
While climate targets are being publicly celebrated, behind the scenes, carbon markets are quietly expanding — and not always in ways that actually benefit the planet. This article investigates how carbon credits work, why they’re controversial, and whether they’re a genuine climate solution or just a well-marketed distraction.
When big polluters can buy their way out of responsibility, is the planet really any better off?
Video: Carbon Offsets: Last Week Tonight with John Oliver (HBO)
Before we dive into the Carbon Credits Controversy, it’s crucial to understand why carbon offsetting itself is such a contentious issue. This animated explainer by Kurzgesagt – In a Nutshell titled “The Carbon Offset Problem” clearly illustrates the complexities, pitfalls, and misunderstandings surrounding carbon credits. Take a few minutes to watch—it lays a solid foundation for the discussion ahead.
As you’ve seen in Kurzgesagt’s compelling explanation, carbon offsets are fraught with issues ranging from questionable verification practices to unintended environmental consequences. Keeping these insights in mind, let’s explore how major corporations like Delta and Shell have navigated—or, according to critics, misused—the carbon offsetting landscape.
A Modern Indulgence for the Wealthy
For example, major airlines like Delta and oil companies like Shell have been criticized for relying on questionable carbon credit purchases instead of cutting actual emissions. (Examples of these controversies are listed in the references at the end of this article.)
This perfectly mirrors what we’ve said before on Critical Mindshift: much of the world’s climate spending goes to distractions — carbon taxes, cycleways, and market-based schemes that let the wealthy carry on, conscience intact, while the most vulnerable pay the price.
Carbon credits are the ultimate modern indulgence. Airlines, oil giants, and massive corporations buy these credits, slap a green label on their marketing, and leave the real problem — reducing emissions — untouched.
The most concerning aspect is that many offset projects are poorly monitored, unverifiable, or would have existed without corporate funding. Some conservation projects collapse once the money runs out, while others have been accused of displacing local communities or failing to protect the ecosystems they claimed to preserve.
Market-Based Fantasy vs. Real Change
This carbon credits controversy raises serious questions about whether market solutions can ever solve environmental problems.
The fundamental problem? Carbon credits rely on the idea that climate change can be solved through market forces. But markets, by nature, favor those with money and power. Real climate action requires systemic changes — reduced consumption, stricter regulations, and radical transparency — not creative accounting tricks.
The wealthiest polluters are buying permission to keep polluting. Meanwhile, small nations, marginalized communities, and future generations carry the burden — a burden they never agreed to bear.
The Illusion of Progress
Carbon credits are often promoted with glossy marketing language and buzzwords like “climate positive” and “net zero,” making consumers feel good without examining the fine print. Carbon credits create the illusion of progress while masking stagnation. Companies release feel-good sustainability reports, shareholders applaud, and consumers breathe a sigh of relief. But in truth, the underlying emissions continue — sometimes increasing — as these credits become little more than paper promises.
What Happens Next?
Potential alternatives to carbon credits include direct carbon taxation and policies that incentivize true emissions reductions rather than offsets.
As public scrutiny increases, carbon credit schemes are under pressure. But will they disappear? Unlikely. There’s too much money involved. Instead, expect more rebranding and ‘refinements’ designed to make the schemes look credible.
And here’s the danger: the longer society clings to these carbon indulgences, the less time and willpower remain to pursue real solutions.
The Critical Mindshift
So as you read this, ask yourself: What green promises have I taken at face value lately? What’s the takeaway? Question everything — especially solutions that sound too easy, too profitable, and too convenient.
It’s up to us — the thinkers, the skeptics, and the questioners — to keep peeling back the layers, exposing greenwashing for what it is, and demanding genuine change. The carbon credits controversy should remind us to remain vigilant and critical of surface-level solutions.
Before you go…
Want to explore how net-zero policies affect real people — and whether the working class is getting priced out of the climate agenda?
Don’t miss: Is Net-Zero Only for the Rich?
Further Reading
Links verified as live at the time of writing.
Science News Article: “Carbon credits don’t reliably reduce emissions, new analysis finds”
https://www.sciencenews.org/article/carbon-credits-climate-change-emissions
A clear, accessible overview of how many carbon credit schemes fail to deliver real climate benefits.
The following book is linked to Amazon.com for your convenience. If you decide to purchase through this link, we may earn a small commission — at no extra cost to you.
Book: Green Gone Wrong: How Our Economy Is Undermining the Environmental Revolution [amazon.com]
By Heather Rogers
A must-read book that dives deep into the false solutions being sold to environmentally conscious consumers.
YouTube: “The Carbon Offset Problem” by Kurzgesagt – In a Nutshell
https://www.youtube.com/watch?v=6p8zAbFKpW0
An engaging and well-researched video explaining why carbon offsets often don’t work and what real solutions might look like.
Related articles on criticalmindshift.com
If you found this article insightful, you may also enjoy these related pieces from CriticalMindShift.com:
Same Players, New Game: Are Fossil Fuel Giants Controlling the Renewable Energy Revolution?
This article examines whether the same corporations responsible for fossil fuel pollution are now positioning themselves to dominate the renewable energy sector — and what that means for genuine progress.
Read it here: https://criticalmindshift.com/are-fossil-fuel-giants-controlling-renewable/
Climate Models: How Much Can We Trust Their Predictions?
Explore how climate models are built, where they succeed, where they fall short, and why healthy skepticism is essential.
Read it here: https://criticalmindshift.com/climate-models-can-we-trust-them/
We encourage you to dive deeper and question the narratives that shape our understanding of the carbon credits controversy.
References
Delta Air Lines:
Lawsuit Over Carbon Neutrality Claims: In May 2023, Delta Air Lines was sued in a California federal court for allegedly misleading consumers by claiming to be the world’s “first carbon-neutral airline.” The lawsuit asserts that Delta relied on carbon offsets that were largely ineffective, leading customers to believe their flights had no environmental impact. (Sources: Associated Press)
Controversial Carbon Offset Purchases: In September 2022, Delta purchased 1.3 million carbon credits from a project in the Colombian Amazon. This project was contentious, with its legitimacy under scrutiny and its fate pending a decision by Colombia’s Constitutional Court. (Source: Contracorriente)
Shell:
Use of Discredited Carbon Credits: In February 2024, reports indicated that Shell was utilizing carbon credits under investigation to meet its climate targets. These credits were associated with questionable projects, leading to accusations of “bad faith” and “malintent” against the company. (Sources: Climate Home News, Business & Human Rights Resource Centre)
Greenwashing Allegations: Shell has faced accusations of greenwashing due to its promotion of carbon offsetting initiatives. Critics argue that the company aggressively marketed its use of carbon credits while the actual environmental benefits of these credits were dubious. (Sources: Greenpeace, Climate Home News)
Retreat from Carbon Offsetting: In September 2023, Shell signaled a retreat from its reliance on carbon offsets amid concerns that many such offsets have no real environmental impact. (Source: The Guardian)
Ryanair:
Misleading Sustainability Claims – In January 2023, the Netherlands Authority for Consumers and Markets (ACM) warned Ryanair about potentially misleading sustainability claims related to their carbon offsetting programs. Statements such as “Fly greener to […]” were deemed to possibly give consumers the false impression that flying with Ryanair was sustainable. Following the investigation, Ryanair adjusted its website to clarify that CO₂ compensation does not make flying itself more sustainable. (Sources: euronews, stay-grounded.org)
Greenwashing Accusations – In February 2020, the UK’s Advertising Standards Authority (ASA) banned Ryanair’s advertising campaign that claimed it was “Europe’s… Lowest Emissions Airline.” The ASA found that the airline had used outdated information and failed to substantiate its environmental claims, leading to accusations of greenwashing. (Sources: stay-grounded.org, The Guardian, Wikipedia)
Increased Emissions – A 2023 analysis by Transport & Environment revealed that Ryanair’s CO₂ emissions had surpassed pre-pandemic levels, making it Europe’s top polluting airline that year with emissions totaling 13.3 million tonnes of CO₂. This contradicts the airline’s claims of being environmentally friendly. (Sources: T&E, The Guardian)
The Carbon Credits Controversy in Focus
This article underscores why the carbon credits controversy deserves attention. It’s not just a policy debate — it’s a question of accountability, fairness, and whether the solutions we’re sold are solutions at all.
Image acknowledgment:
We’re grateful to the talented photographers and designers on Unsplash for providing beautiful, free-to-use images. The image on this page is by Eduardo Ramos. Check out their work here: https://unsplash.com/@eduardoramoss.
