WASHINGTON POST • September 27, 2024
In theory, a carbon credit is a certificate representing a one-ton drop in greenhouse gas emissions tied to projects such as a wind farm or a tree-planting scheme. They’re bought by companies to compensate for the pollution they produce somewhere else in the world. But, when it comes to the laws that underpin financial markets, the answer to that question isn’t yet clear. Until it’s solved, banks and investors are unlikely to allocate anywhere near the billions of dollars that proponents expect to flow to carbon credits.