Op-ed

The Limits of carbon offsetting

Economics

Published on 10 July 2025

On the surface, the principle of carbon offsetting appears to be a win-win for Europeans who pollute and for developing countries where green projects are launched. But the system has its limitations, explains Frédéric Cherbonnier.

Article published in Les Echos on July 7, 2025

The principle of carbon offsetting is, in theory, a win-win for Europeans who pollute and for developing countries where green projects are emerging. But the system has its limitations, explains Frédéric Cherbonnier.
Following this heat wave, it is worth taking a closer look at one of the mechanisms designed to combat global warming: carbon offsetting. The idea is to allow an economic actor to continue polluting in exchange for payment for an environmental service.
The “Clean Development Mechanism” (CDM), established under the Kyoto Protocol, thus allows companies to finance projects that reduce greenhouse gas emissions in developing countries...

Read more at Les Echos.
Illustration: Photo by Karsten Würth on Unsplash.

Author

Frédéric Cherbonnier

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