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Torsten Krause

Torsten Krause

Senior Lecturer, Deputy Director

Torsten Krause

The unequal exchange of carbon : calculating value appropriation and atmospheric colonisation through carbon offsetting

Author

  • Andrea Rizzi
  • Torsten Krause

Summary, in English

Despite a flurry of critical analyses discussing its controversial track record in terms of effectiveness and social feasibility, carbon offsetting remains one of the key mechanisms within global climate governance. We address an understudied dimension of the offsetting paradigm, with a focus on the voluntary carbon market and nature-based ‘solutions’, to inquire whether carbon trading constitutes a form of unequal ecological and economic exchange. We quantify the global unequal exchange through carbon credits. To ground our hypotheses, we analyse the carbon trading landscape of Colombia and offer a country-specific quantification of value plunder through carbon commodity chains. We find that, only through voluntary carbon markets, wealthy countries appropriated 4 billion USD in 4 years from the Global South, whereas the value drain from Colombia is estimated at 200 million USD. We also highlight further value leakage through both formal and informal carbon brokers.

Department/s

  • LUCSUS (Lund University Centre for Sustainability Studies)
  • BECC: Biodiversity and Ecosystem services in a Changing Climate
  • LU Profile Area: Nature-based future solutions

Publishing year

2025

Language

English

Publication/Series

New Political Economy

Document type

Journal article

Publisher

Routledge

Topic

  • Economics
  • Climate Science

Keywords

  • Colombia
  • commodity chains
  • nature-based solutions
  • unequal exchange
  • Voluntary carbon markets

Status

Epub

ISBN/ISSN/Other

  • ISSN: 1356-3467