GNV News, September 12, 2025

In 2024, around 255 million carbon credits were issued worldwide, and 162 million carbon credits were purchased. Carbon credits (credits) are a mechanism of emissions trading introduced as part of climate measures, certifying that a certain amount of greenhouse gases such as carbon dioxide has been reduced or absorbed through activities like afforestation and the use of clean energy. Companies and countries that find it difficult to meet emissions reduction targets can purchase these credits to offset their own emissions. A carbon offset is when companies purchase credits to offset their own emissions, allowing them to claim they have reduced the carbon emissions from their operations by providing funding to greenhouse gas reduction projects, among others.

However, there are also criticisms that the current credit system has many problems. A study published by the University of Pennsylvania in July 2025 flagged the overestimation of figures in the credit market as an issue, and warned that a system in which third-party auditors and private project registries—who are supposed to objectively evaluate credits—are selected and paid by the companies implementing the projects creates conflicts of interest. There are also accusations that, without stricter regulation, companies can abuse credits to carry out superficial environmental measures without actually reducing emissions. In September 2025, a study by Utrecht University stated that the current system’s evaluation criteria are biased, and highlighted the importance of setting fair burden-sharing based on a calculation method that considers each country’s historical emissions, economic capacity, and feasible ability to act.

Learn more about global climate change issues and measures → “The reality of exceeding 1.5°C: Global climate change issues, measures, and Japanese media coverage“

Compilation of climate reporting here → “Summary article: Climate reporting“

Coal being transported at a thermal power plant, Slovenia (Photo: Petar Milošević / Wikimedia Commons [CC BY-SA 4.0] )

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