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Claremont McKenna College

Publication Date

Fall 2023

Program Name

Switzerland: International Studies and Multilateral Diplomacy

Abstract

Carbon offsets have come under increasing scrutiny due to uncertainties in real carbon abatement, transparency, and fears that it will exacerbate global inequality by allowing the global North to ‘pay to pollute’ through ethically questionable projects in the South. Following Article 2.1.C of the Paris Agreement, this paper argues that the global green transition requires private capital to be fully mobilized through voluntary carbon markets (VCMs). Given that ASEAN states face some of the world’s greatest climate risks while being a fast-growing region, this case study answers the question: how can states play a more proactive role in regulating VCMs to accelerate sustainable development? This paper motivates the ASEAN region to adopt regional industrial policy to create comparative advantages in the voluntary carbon market, while serving as a blueprint for developing countries to catch-up through sustainable means.

Disciplines

Climate | Development Studies | Energy Policy | Infrastructure | International Business | International Economics | International Relations

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