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Carbon Offsets and Green Finance: Understanding Corporate Demand for Carbon Offsets and Mitigation – A Global Literature Review

Carbon Offsets and Green Finance: Understanding Corporate Demand for Carbon Offsets and Mitigation – A Global Literature Review
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Author(s): Andre Poyser (University of Otago, New Zealand)
Copyright: 2024
Pages: 24
Source title: Sustainable Investments in Green Finance
Source Author(s)/Editor(s): Sanjay Taneja (Graphic Era University (Deemed), India), Pawan Kumar (Chandigarh University, India), Simon Grima (Department of Insurance, Faculty of Economics Management and Accountancy, University of Malta, Msida, Malta & Faculty of Business, Management and Economics, University of Latvia, Riga, Latvia), Ercan Ozen (Usak University, Turkey)and Kiran Sood (Chitkara Business School, Chitkara University, India & Research Fellow at the Women Researchers Council (WRC) at Azerbaijan State University of Economics (UNEC), Azerbaijan)
DOI: 10.4018/979-8-3693-1388-6.ch009

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Abstract

Understanding corporate demand for carbon offsets is a critical component of sustainable investments in green finance. It reflects companies' and investors' commitment to environmental sustainability, contributes to emissions reduction, supports the development of green financial instruments, and aligns with broader global sustainability objectives. In recent years, the use of carbon offset credits has increased alongside the voluntary carbon offset market with concerns being raised about the cobra effect of offsets vis-à-vis the investment required for abatement and a reduction in gross emission in keeping with the mitigation hierarchy concept. As the demand for sustainable investments continues to grow, carbon offsets will play an increasingly significant role in shaping the landscape of green finance. This chapter conducts a global systematic literature review and synthesis of 303 peer-review studies and grey publications on the demand for and use of carbon offsets, mitigation deterrence, and abatement approaches of firms.

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