Good Economies of Carbon Offsetting: The cyclical dynamics of valuation and critique in voluntary carbon markets

Abstract

Voluntary carbon markets are based on the idea that the carbon credits sold in markets are both the same, or climatically equivalent to one another, and different, reflecting how, when, where, and by whom they have been produced. This article examines how market actors deal with this tension and value units that are both commensurate and differentiated. Based on existing literature, interviews, and document analysis, I identify and present three instantiations of a good economy of carbon offsetting from the 2000s onwards. Each phase shows how valuation processes iterate between commensuration and differentiation. This is achieved through the development of elaborate sets of complementary valuation practices and tools, such as methodologies for valuing co-benefits, impact scores and overcompensation factors for securing climate impacts, and carbon removal crediting methodologies. While critique is central to driving the move from one good economy to another, this article also shows how the valuation practices of voluntary carbon markets appear locked into repetitive cycles of critique and reform, with recurrent disputes emerging over what to weigh and value and how. This poses new questions concerning how to critique such markets and their valuation practices.