Carbon offset projects acquire 22 million acres globally, threatening local communities in global south

The voluntary carbon market is under fire for problems that extend far beyond inflated emission reduction claims. A new analysis by the Land Matrix Initiative reveals that carbon offset projects have acquired approximately 9 million hectares—more than 22 million acres—of land worldwide, with the vast majority located in Global South countries where land governance systems are often weak.

These large-scale land acquisitions for carbon offsetting are creating serious consequences for local communities who depend on these lands for their livelihoods. The Land Matrix Initiative, which monitors land deals that contribute to land concentration and power imbalances, warns that the massive scale of these transactions raises critical questions about climate justice and community land access. Many of these projects are concentrated in regions where local populations have limited legal protections or political power to resist land grabs.

Even smaller-scale, community-based carbon projects that don’t involve outright land acquisitions carry significant risks. These initiatives often impose long-term restrictions on how communities can use their land, involve inequitable contracts, and proceed without proper informed consent from affected populations. Despite promises of economic benefits, many participating communities see uncertain or minimal returns from these carbon projects.

The findings highlight a troubling pattern in the carbon offset industry: while companies in wealthy nations purchase credits to offset their emissions, the environmental and social costs are disproportionately borne by vulnerable communities in developing countries. This dynamic underscores the urgent need for stronger oversight and more equitable approaches to carbon offsetting that prioritize local ownership and genuine community benefit.