Carbon credits can be a reasonable way to help richer nations help poorer, more polluting nations transition to greener alternatives. However more often than n

Carbon credits can be a reasonable way to help richer nations help poorer, more polluting nations transition to greener alternatives. However more often than not they are indeed "a scam". Credits have been around since the 70's and have had questionable impact on the growing climate crisis. If I were a benevolent dictator of a nation, I would take the following approach: - Start with the legal requirement for every business to understand their Scope-1 and Scope-2 emissions. Scope-3 will need to also be understood in the future to ensure no loopholes but that's much easier when the supply chain understands their scopes 1&2; - Set a net-zero target for all businesses that requires overall emissions reductions and leverages carbon removal for any avoidable emissions; - Treat emissions accounting the same way as financial accounting, requiring annual submission to the state and penalizing fraud/mis-representation; - Offer tax incentives for carbon credits however set stricter standards (credits must have a certain amount additionality and/or be demonstrating help to reduce emissions of other businesses within this imginary nation); - Carbon credits cannot be used to reach the net-zero targets set above; - Future goals/incentives can encourage businesses to The overall aim is to highlight the hidden costs of unsustainable practices, effecitvely eliminating the green premium that currently exists for more sustainable products/services. Companies should then prefer cleaner practices and suppliers to keep their own costs down which accelerates the fly wheel towards a sustainable future. Now of course there are issues (e.g. the supply of CDR is small and expensive or the availability of clean energy) with this approach, however nations can help encourage development here (e.g. with the IRA) as well as private investors. Then of course there is the consumer society to contend with who wants lots of cheap produce but that's why the "dictator" part...