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Carbon Credits Are Supposed to Funnel Money to Poor Countries. Do They?
Summary
A report by Carbon Market Watch raises concerns about the effectiveness of voluntary carbon markets in benefiting poor countries. While carbon credit projects are often located in developing regions, the report found no evidence that they bring significant economic benefits to local communities. Most projects are controlled by companies in wealthier nations, raising questions about whether the financial benefits truly reach the intended recipients. The lack of transparency in financial flows and project documentation exacerbates these concerns, with critics arguing that carbon markets may perpetuate inequality rather than address it. The report calls for stronger oversight and greater transparency in the carbon credit market.
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