MYTHS AND REALITIES OF CARBON CREDITS: A TOOL FOR SUSTAINABLEDEVELOPMENT OR AN ILLUSION OF CLIMATE RESPONSIBILITY?

Abstract

This article examines the effectiveness of carbon credits as a mechanism for global climate policy. The study analyses the functioning of compliance and voluntary carbon markets, the principle of additionality, and the risks of distorted incentives and widespread corporate greenwashing. A historical overview of climate agreements from the Kyoto Protocol to the Paris Agreement demonstrates the shift in the role of carbon credits from a core instrument to a supplementary tool within decarbonization strategies. A comparative assessment between Azerbaijan and the Republic of Korea highlights the operation of K-ETS, the national green taxonomy, transparent MRV systems, and the potential adaptation of Korean regulatory experience to the Azerbaijani context. The research shows that carbon offsets often replace real emission reductions with declarative neutrality. The article proposes reform directions including increased transparency, carbon taxation, reduced dependence on offsets, and prioritization of renewable energy and technological innovation.