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Carbon Offset Market Faces Chaos as African Mega-Project Collapses

Summary

The collapse of the partnership overseeing Kariba, a significant carbon project in Zimbabwe, raises concerns about the resilience of the $2 billion carbon market. South Pole, the major seller of carbon offsets tied to the Kariba forest-protection initiative, announced the termination of its contract with Carbon Green Investments, the project's owner and developer. This development puts into question the integrity of one of the largest credit sources in the carbon market, where credits from Kariba have been purchased by prominent corporations such as Volkswagen AG, Nestle SA, L’Oreal SA, Gucci, and McKinsey. The situation underscores uncertainties in relying on the carbon market to offset emissions and promote sustainable practices.

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