Resource information
Global concerns about climate change
have led to the development of new market based mechanisms
aimed at reducing the concentration of greenhouse gases
(GHGs) in the atmosphere. These carbon trading schemes
enable countries or entities within countries to trade
'carbon credits' in order to increase the economic
efficiency of transitioning to a low carbon economy. A
sub-set of these markets involve the generation of carbon
credits from projects that reduce GHG emissions or increase
GHG removals in developing countries. The paper first gives
an overview of what carbon offset projects are and how they
can be classified, as this is considered essential for
understanding how the project type links to impacts. It then
briefly reviews the evidence on livelihood impacts,
including the approaches that have been used in determining
livelihood impacts. A simple conceptual framework that is
applicable to all project types is presented in section
four. In section five, the World Bank portfolio is
described, and in sections six and seven, evidence for the
impacts on livelihood outcomes is discussed with reference
to the portfolio. Sections eight and nine provide
conclusions and recommendations.
