Carbon Colonialism: How the Global North Offsets on the Backs of the South

Climate change is a global crisis, but the responsibility and consequences are not shared equally. A troubling new form of exploitation—carbon colonialism—has emerged, where wealthy countries in the Global North continue polluting while buying carbon offsets from poorer nations in the Global South. This blog explores how this system perpetuates inequality, enables greenwashing, and delays real climate action.

What Is Carbon Colonialism?

Carbon colonialism refers to the practice where rich countries and corporations purchase carbon offsets from developing countries to compensate for their own emissions. 

While it sounds like a fair trade—reducing emissions somewhere to balance out pollution elsewhere—it often masks deeper problems. Instead of cutting their own emissions, the Global North shifts the burden to the Global South, echoing patterns of historical colonialism where resources and labor were extracted from poorer regions for the benefit of wealthier ones.

The Problem with Carbon Offsetting

Carbon offsetting is meant to be a tool for climate action: fund projects that reduce greenhouse gases, like planting trees or building renewable energy, to balance out emissions. But in practice, many offset projects fall short:

• Overestimated Impact: Some projects claim to reduce more emissions than they actually do.

• Displacement of Communities: Tree plantations sometimes push local people off their land.

• Monoculture Plantations: Replacing diverse ecosystems with single-species forests harms biodiversity.

• Greenwashing: Companies use offsets to appear environmentally responsible without changing their polluting habits.

This means that instead of reducing emissions at the source, companies buy their way out of responsibility, continuing harmful practices while claiming to be “carbon neutral.”

The Power Imbalance Between North and South

The Global North, responsible for the majority of historical emissions, controls the rules of carbon markets. Meanwhile, communities in the Global South often have little say in how offset projects are run on their land. This power imbalance allows wealthy countries to maintain high-consumption lifestyles while outsourcing the environmental and social costs to poorer nations.

Why Carbon Offsetting Isn’t Enough

Experts warn that relying on carbon capture and offsetting alone is unrealistic. For example, carbon capture technology requires enormous amounts of energy—more than three times the current global electricity use to reach carbon neutrality this way. The most effective and fair solution is simple: reduce emissions at the source, especially in countries with the largest carbon footprints.

Offsets should only be a last step, used to address emissions that cannot be eliminated. Companies must first ask themselves: “Have we done everything possible to reduce emissions in our operations, supply chains, and product use?” Only then should offsets be considered.

Toward Climate Justice and Real Change

True climate justice means:

• Recognizing historical responsibility for emissions.

• Respecting indigenous rights and local communities.

• Ensuring the costs of climate action don’t fall on those least responsible.

• Designing carbon markets that prioritize real emissions reductions and equitable development.

Without these, carbon colonialism will continue to deepen global inequalities under the guise of sustainability.

How Ikaya Is Making a Difference

At Ikaya, we believe sustainability must go beyond carbon offsets. We focus on transparency and fairness in our supply chains, empowering communities in the Global South rather than exploiting them for carbon credits.

Our approach is about taking real responsibility for emissions and supporting equitable development. Because true sustainability means more than just balancing numbers—it means creating a better future for everyone.