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Global Carbon Market in Turmoil After Zimbabwe Grabs Offset Money

A government claiming half the revenue from privately-backed efforts to protect forests and cut emissions might throw carbon credit projects around the world into doubt

A government decision to intervene in Zimbabwe’s carbon credit industry will have an impact on the Kariba mega-project run in part by South Pole, the world’s leading seller of offsets.

A government decision to intervene in Zimbabwe’s carbon credit industry will have an impact on the Kariba mega-project run in part by South Pole, the world’s leading seller of offsets.

Photographer: Cynthia R Matonhodze

The global market for carbon offsets is worth about $2 billion today and projected to grow to as much as $1 trillion in 15 years even as it faces fundamental questions about credibility and effectiveness. Add government appropriation to the list of risks for this climate solution.

A shock announcement this week that Zimbabwe will take half of all revenues generated from offsets projects developed on its territory is a harbinger of an uncertain future in the carbon trade. The African nation is the world’s 12th largest creator of offsets, with 4.2 million credits from 30 registered projects last year, according to BloombergNEF.