Comment by Hermel

No, the fundamental issue with carbon credits is its economics. It would be much healthier to set a fixed price for carbon emissions. This price should be based on the externalities caused by the emissions. In the worst case, the price is the cost of extracting the CO2 from the atmosphere again. Such a fixed price, a carbon tax, would help the industry because it would make production costs more predictable, and it would be much more fair than carbon credits assigned to those firms that hire the best lobbyists. When fixing the emission quantity instead of its price, the price of carbon credits tend to either go to 0 (if there are too many) or infinity (if there are not enough) at the end of a credit period, which is total nonsense. However, for politicians, carbon credits are much more attractive because being able to distribute them gives them power.