In the heart of Zambia’s Luangwa Valley, a complex dance is unfolding between financial markets, environmental conservation, and local communities. This dance, choreographed by the world’s largest REDD+ (Reducing Emissions from Deforestation and Forest Degradation) project, is the subject of a compelling new study published in the journal *Global Challenges in Social Sciences*. The research, led by Kathleen Bergs of the University of Ottawa and the University of Zambia, shines a light on the role of the Voluntary Carbon Market (VCM) in addressing global social challenges, particularly in the context of ecological justice.
The study comes at a critical time. The recent establishment of the Loss and Damage Fund at COP28 acknowledged the stark asymmetry between the causes and effects of climate change. Yet, the funds pledged fall woefully short, and much of the reported climate finance has been redirected from development aid. This underscores the urgent need to augment public finance with private investment, but it also raises contentious debates about the commodification of nature and the effectiveness of market mechanisms in delivering social and environmental outcomes.
Bergs’ research delves into these debates, examining the extent to which capital pursues financial efficiencies over development effectiveness. The Luangwa Valley, home to Africa’s largest REDD+ project, provides a rich case study. The VCM, Bergs finds, can indeed deliver a price that includes benefits ‘beyond carbon’. However, the opacity in over-the-counter sales fuels suspicion that communities may not be receiving their fair share.
“The communities’ desire to retain their forests—and to benefit financially from so doing—is strong,” Bergs notes. “Their voices should not be drowned out in the furore.”
The study also highlights the fragmented policy environment as a key driver of deforestation, with weak local governance eroding trust and allegations of elite capture commonplace. Despite these challenges, there is substantive evidence that emissions from deforestation are being reduced. Bergs calls for measures to enhance transparency and reduce corruption to promote ecological justice.
For the energy sector, the implications are significant. As companies increasingly turn to carbon markets to offset emissions, the findings underscore the need for transparency and fairness in these transactions. The study also highlights the potential for private investment to drive conservation efforts, but it cautions against the pursuit of financial efficiencies at the expense of development effectiveness.
Bergs’ research is a call to action, urging stakeholders to address the challenges of ecological justice in the Voluntary Carbon Market. As the world grapples with the complexities of climate finance, her work provides valuable insights into the role that markets can play in addressing global social challenges. The study is a reminder that in the dance between finance, conservation, and communities, every step must be taken with care, transparency, and a commitment to justice.