The unequal exchange of carbon: calculating value appropriation and atmospheric colonisation through carbon offsetting

Despite a flurry of critical analyses discussing its controversial track record in terms of effectiveness and social feasibility, carbon offsetting remains one of the key mechanisms within global climate governance. We address an understudied dimension of the offsetting paradigm, with a focus on the voluntary carbon market and nature-based ‘solutions’, to inquire whether carbon trading constitutes a form of unequal ecological and economic exchange. We quantify the global unequal exchange through carbon credits. To ground our hypotheses, we analyse the carbon trading landscape of Colombia and offer a country-specific quantification of value plunder through carbon commodity chains. We find that, only through voluntary carbon markets, wealthy countries appropriated 4 billion USD in 4 years from the Global South, whereas the value drain from Colombia is estimated at 200 million USD. We also highlight further value leakage through both formal and informal carbon brokers.

Authors

Institutions

Publication Details

Journal
New Political Economy
Published
2025-10-11
DOI
https://doi.org/10.1080/13563467.2025.2572047
Primary Topic
Sustainability and Climate Change Governance
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

The unequal exchange of carbon: calculating value appropriation and atmospheric colonisation through carbon offsetting

Torsten Krause, Andrea Rizzi
New Political Economy
Sustainability and Climate Change Governance
article

The unequal exchange of carbon: calculating value appropriation and atmospheric colonisation through carbon offsetting

Torsten Krause, Andrea Rizzi
article en

Abstract

Despite a flurry of critical analyses discussing its controversial track record in terms of effectiveness and social feasibility, carbon offsetting remains one of the key mechanisms within global climate governance. We address an understudied dimension of the offsetting paradigm, with a focus on the voluntary carbon market and nature-based ‘solutions’, to inquire whether carbon trading constitutes a form of unequal ecological and economic exchange. We quantify the global unequal exchange through carbon credits. To ground our hypotheses, we analyse the carbon trading landscape of Colombia and offer a country-specific quantification of value plunder through carbon commodity chains. We find that, only through voluntary carbon markets, wealthy countries appropriated 4 billion USD in 4 years from the Global South, whereas the value drain from Colombia is estimated at 200 million USD. We also highlight further value leakage through both formal and informal carbon brokers.

New Political Economy
Lund University (SE), University of Bologna (IT)
Openalex Percentile: Top 73%
Sustainability and Climate Change Governance
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.