One of the defining outcomes of last month’s climate summit held in Baku was the establishment of a new international carbon market, marking the culmination of nearly a decade of negotiations. As representatives from leading human rights organizations, SOMO and Human Rights Watch, we have conducted thorough investigations into significant carbon projects linked to human rights concerns. Consequently, we feel compelled to raise awareness regarding the potential pitfalls of heightened carbon trading, particularly its implications for vulnerable populations.
Carbon credits are intended to represent the reduction, avoidance, or removal of greenhouse gas emissions, often achieved via initiatives aimed at preventing deforestation or fostering reforestation. These credits may be purchased by governments, corporations, and individuals as a means to offset their carbon footprints, creating what is known as the “voluntary” carbon market when these transactions occur without mandated requirements.
Recent investigations over the past three years have unveiled troubling instances of misleading claims within this sector. Certain high-profile projects have been found to substantially inflate their climate benefits, thus defrauding investors. The mounting evidence against the efficacy of carbon offsetting led the Science-Based Targets Initiative, a United Nations-endorsed program assisting private entities in pollution reduction strategies, to exclude offsetting as a legitimate approach for achieving environmental objectives.
In response to these critiques, the offsetting sector has initiated a marketing campaign that emphasizes the purported integrity of its operations. Modifications to measurement methodologies have been sought to enhance the credibility of the system. However, the significant gap regarding human rights remains largely overlooked.
Our research indicates that several carbon projects, rather than benefiting the communities they purport to support, have inflicted considerable harm. A striking case is the Kasigau Corridor REDD+ Project in Kenya, which has been the subject of complaints detailing numerous instances of harassment and abuse by senior staff, affecting a wide community of residents. Similarly, a detailed report from Human Rights Watch emphasized forced evictions and harassment faced by the Chong Indigenous community in Cambodia due to the Southern Cardamom REDD+ Project.
These projects have collectively generated millions of carbon credits, purchased by renowned companies ranging from fashion labels to leading airlines. Despite the opaque financials guiding these projects, their revenue streams are clearly substantial.
Both the Kasigau and Southern Cardamom initiatives are certified by Verra, a prominent standard-setting organization in the voluntary carbon market. Following reports of the serious human rights violations, Verra temporarily suspended these projects but later reinstated them, claiming that requisite actions had been taken to address the reported issues. However, our investigation revealed deficiencies in the review process that prompted the reinstatement; there was no direct engagement with the impacted communities, nor were on-site investigations conducted.
Moreover, the responses from the accountable projects have often downplayed the severity of reported incidents, raising concerns about the rigor of Verra’s oversight. Despite recommendations for safeguards and training programs, the lack of thorough on-site verification points to significant gaps in accountability.
Verra’s assertion that it cannot mandate compensation for breaches of safeguarding requirements further complicates the landscape for victims of human rights violations. This raises critical questions about the reliability of organizations claiming to uphold standards of integrity in carbon offset projects.
As a key player in the carbon market, Verra strives to guide global expansion grounded in the COP29 agreement, advocating for financing that reaches vulnerable communities. Yet, as evidenced by our findings, the current practices fail to adequately address human rights abuses, exacerbating the vulnerability of those affected.
The perspectives shared in this article reflect the authors’ observations and should be understood as part of the ongoing discourse surrounding the intersection of climate initiatives and human rights.
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