Integrating voluntary carbon offsets into the carbon border adjustment mechanism through multi-objective optimization...

Integrating REDD+ projects from the Voluntary Carbon Market (VCM) into the Carbon Border Adjustment Mechanism (CBAM) can enhance its emissions reduction flexibility and deliver greater ecological benefits. This study employs a multi-objective optimization framework to allocate CBAM revenues to 62 REDD+ countries. The study finds that: (1) CBAM could generate 26.1 billion USD annual revenue for the EU through carbon costs, with China, the United States, the United Kingdom, Turkey, and Russia contributing the most. (2) The opportunity costs for forest protection in 62 REDD+ countries vary widely but remain below the average carbon price in developed countries. (3) Allocating REDD+ funds through a multi-objective optimization framework can deliver significant carbon sequestration benefits and ecological gains. This study recommends establishing consistent carbon credit standards between the VCM and CBAM. A multi-objective optimization framework can enhance REDD+ fund allocation. High-quality REDD+ projects should gain more priority. These projects deliver multiple co-benefits, including biodiversity conservation.