Empowering Cities A Framework for Utilizing Carbon Credits in Local Area Planning

Abstract

Climate change poses a significant threat to the planet, driven primarily by the accumulation of greenhouse gases (GHGs) in the atmosphere. Human activities, including fossil fuel combustion and deforestation, have contributed to this alarming trend. In response, international agreements like the Paris Agreement have been established to limit global temperature rise. One mechanism to achieve these goals is through carbon credits, which quantify GHG emissions reduction, avoidance, or removal. A study that examines the global carbon credit systems, evaluates its applicability at the local level, and proposes strategies for integration into local planning processes. The global carbon credit system operates within cap-and-trade or emissions trading schemes, allowing entities to buy or sell credits to comply with emission limits. Carbon credits are measured in metric tons of CO2 equivalent (CO2e) and enable organizations to offset their emissions by investing in emission reduction projects elsewhere. Understanding the structure and mechanisms of this system is crucial for effective climate change mitigation. This study employs a three-pronged approach. First, it conducts a comprehensive review of the global carbon credit system, analysing its structure, key players, and crediting mechanisms. Second, it assesses the potential for carbon credits at the local level by evaluating feasible carbon reduction projects within local planning contexts. Finally, the research develops strategies for integrating carbon credits into local planning processes, considering institutional frameworks and potential economic and environmental co-benefits. The findings suggest that carbon credits offer a promising avenue for mitigating climate change at both global and local levels. By understanding the intricacies of the carbon credit system and evaluating local context, municipalities and organizations can leverage this mechanism to achieve emission reduction goals. Recommendations include fostering partnerships between local governments to implement carbon credit projects effectively. Additionally, policymakers should consider incentives to encourage participation in carbon credit initiatives, ultimately contributing to more sustainable development pathways.