Are Carbon Markets the Solution Against Climate Change?
Global warming is one of the most pressing issues of the 21st century. In order to meet this unprecedented challenge, States and sub-state entities have decided to use an original regulatory instrument: a trading system wherein pollution rights can be exchanged (i.e. a ‘carbon market’). HEC Paris Professor Van Waeyenberge explains why the collaboration between countries has not yet led to satisfying results, and what can be done about it. Given the urgency of the situation, one cannot possibly reconceive or reimagine the current system from scratch, but one can improve it by encouraging complementary measures through the coordination of the various existing initiatives. This coordination could take place via the connections and interlinkages between the different carbon markets initiatives and through the use of new technologies such as the blockchain to implement it.