The Kyoto Protocol, which is binding under international law, stipulates that carbon offset projects should take place where they are most economical. The majority of carbon offset projects take place in the Global South, as they can be realised comparatively cheaply in developing and emerging countries and the savings potential from new technologies is still very high. The system functions, because it does not matter for the climate where greenhouse gas emissions are generated and saved. Ultimately it is the total volume of emissions in the atmosphere that counts and will decide whether the 1.5-degree target from the Paris Climate Agreement will be achieved.
Emissions trading is a key driver in the transfer of clean technologies for emerging and developing countries. In addition, the projects help to improve the economic, social and ecological circumstances on the ground and in doing so make an important contribution to achieving the UN Sustainable Development Goals (SDGs).