How carbon trading contributes to reduction in emission of greenhouse gases: a narrative literature review

Abstract

Purpose This study aims to undertake a review of how carbon trading contributes to a reduction in emission of greenhouse gases (CHGs). Design/methodology/approach A narrative literature review approach was adopted to identify and synthesise existing literature using the Scopus and Web of Science databases. Articles were limited to the past 10 years to obtain the most current literature. The various ways in which carbon trading leads to reductions in emissions were identified and discussed. Findings The results showed that the main ways in which carbon trading contributes to reductions in emissions are through innovation in low-carbon technologies, restoration of ecosystems through offset money, development of renewable and clean energy and providing information on investment related to emissions. Practical implications The value of this study is to contribute to the built environment’s climate change mitigation agenda by identifying the role of carbon trading. Originality/value The output of this research identifies and contextualises the role carbon trading plays in the reduction of CHG emissions.