TED Talks Daily
The controversial climate tool funding real change | Sandeep Roy Choudhury
24 Feb 2026
Chapter 1: What is the main topic discussed in this episode?
You're listening to TED Talks Daily, where we bring you new ideas and conversations to spark your curiosity every day. I'm your host, Elise Hu. We often share our talks on this show that explore the ways in which making a profit and a positive impact on the world can go hand in hand. Where do carbon credits fit into this?
In this talk, climate equity entrepreneur Sandeep Roy Choudhury suggests that carbon credits are an imperfect but still powerful financial tool to make solutions a reality, especially in vulnerable communities already facing climate change's worst effects.
Sandeep explores why the math of carbon credits works and how they're able to fund real projects, from mangrove restoration to emission-cutting cooking initiatives that are building on-the-ground resilience, creating jobs, and serving the planet.
We don't live in a perfect world. I wish we did. Especially when it comes to fighting climate change. Sure, we have 30 percent of the world on clean energy, but we still depend a lot on fossil fuels for the near future. Take the Science-Based Targets Initiative. It's a leading decarbonization initiative for businesses.
Businesses have taken a target on an average of 6.4 percent emission reductions per year, year on year, till they go net zero. That's great news. But what happens to the other 93.6 percent? My fight is on that 93.6 percent. What happens between now and then? Who takes care of these emissions? Who's taking responsibility for these emissions that we are leaving out there in the atmosphere?
Here's where carbon credits come in. One carbon credit equals one ton of carbon that is either removed, reduced or avoided. These don't come from thin air. They are third-party audited, certified, using international standards. These credits can then be bought by companies to offset their emissions.
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Chapter 2: How do carbon credits contribute to climate solutions?
not the 6.4 percent they are to reduce. It's for this 93.6, and that's the important point. This also allows companies. This is not a license to pollute.
This allows companies to take responsibility for these emissions, yes, but it also allows these companies to work beyond their boundaries and help things like the energy transition, things like planting mangroves in some other country, for the communities.
Communities, the frontline communities who bear the brunt of climate change every day of their lives, I actually call them the first responders, not the vulnerable. It's an important distinction to make. Solutions can and should reach every part of the planet, from the tropics of the Papua to the deserts of the Sahel to the settlements of the Amazon, everywhere.
Think of carbon credits as a bridge. An agile bridge, it gets you funding right now. We need finance now. And that's an important concept. So, sometimes, you know, we're called the wild, wild west, the carbon markets. I have been working in carbon for almost two decades now, and I have seen the difference it can make. I'll take you to Indonesia.
There was this NGO that reached out to us in 2021 and said, we want to build a wall of mangroves. I said, why? They said, in 2004, when the tsunami hit, all those islands which had standing mangroves, the waves, they were tackled faster, and then, hence, there was less destruction in those islands.
Again, you have to remember that public climate finance is slow to reach these last mile communities because it's steeped in bureaucracy and geopolitics. Geopolitics people, the world we live today. And they came to us and we made it happen through carbon credits. Sometimes these credits, the markets usually, and I hear this a lot, it's a scam.
And I get it, because there have been some high-profile failures about carbon markets that you might have heard about, and I get it. But not all projects are failures, and not all failures are the end of the story. Let me talk about one of my failures. The same. Mangroves we planted in Indonesia, out of those, in one area of Sumatra, there was this massive flood in the fall of 2024.
Those wall of mangroves disappeared. The floods came in, took all those trees. Does that mean all those carbon credits that we claimed for the projects were bogus? No. because we account for these risks. In any carbon standards and methodologies, we have things like dispersed planting, risk management and buffers. Buffers is an important concept.
Every project keeps aside about 15 to 20 percent of carbon credits for exactly this reason. So the credit and the claim stands. This is important because most of climate action will happen in places where the risk is high. That's the way it should be done.
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Chapter 3: What challenges do companies face in reducing emissions?
But yes, we recognize these risks, and we account for these risks every time we develop these projects. And this is not just for us. Most carbon projects would have to do that. A good project, if done properly, can make a massive difference. I often hear about ... polluter's pay. I go to conferences and I see these people holding up signs, polluter's pay.
And I almost question, say, polluter's pay, but pay who? Right? So, carbon markets actually allows for these pollutants to pay directly to the people who are taking climate action. This is important. Directly to people who are taking climate action. And the planet, frankly, could not care where your decarbonization comes from. Right?
So, case in point, it costs 75 dollars to reduce one ton of carbon on an average in the European Union. In Southeast Asia, that average is 15 dollars a ton. So you're getting five times more impact value for your buck, and you're getting I don't know how many multitude more times of the social impact. I have seen it firsthand. Let me take you to Kashmir.
It's a distant village in India where the grid will never reach. Solar home lighting systems here. Same project in Indonesia, women microenterprises making batik products using mangrove pigments. Livelihoods. Meet Njara. He's an ex-poacher in Madagascar, now plants mangroves with us. Social change. A football team in Kegoma, Tanzania. Let me take you there.
These are women who plant agroforestry systems with us in Kegoma, but play football. We have village-level football competitions now. Community building cannot be decoupled from nature restoration. This is a very important point. And this is a scale-up. This is a Bangladesh program on clean cooking, concrete kitchens in rural Bangladesh. It was languishing at about 500,000 households in 2012.
We took it up to 6.5 million households in the next few years. Scale is of essence on climate action, and that's where markets can help. This is all possible because when climate action is rooted in people and possibilities, possibilities, markets allow us to explore those possibilities. Sometimes I hear about the accounting. Ah, but the accounting is not solid.
I get it, but which part of climate science is solid accounting? The science improves, so does the accounting. We also worry about things like indigenous rights, consent on local populations, benefit-sharing mechanisms. Please understand that we worry about it, so do the current standards. A carbon finance is not a grant, it's a transaction.
It talks to the equality of the transactor and the transacted. A farmer transitioning to a cleaner practice is being paid for a service. It's not a dole-out. These people, these programs, have nowhere else to go for money. So companies will reduce what they can. and they will invest in carbon credits for what they can't, for it's the right thing to do.
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Chapter 4: How do carbon credits help vulnerable communities?
But today, all of the market detractors make it impossible or make it so much harder for companies who are actually trying. This will not solve this problem. We have to keep trying, for mistakes will happen, and that's OK. What is not right is to let go of the only tools that work for the Global South. Today, we are making inaction feel safer than action. That's not how this suits itself.
So let's fix what needs fixing. Let's take responsibility for all those emissions and leave no emissions behind. Price every ton. That's the only responsible thing to do. Thank you.
That was Sandeep Roy Chaudhry speaking at the TED Countdown Summit in Nairobi, Kenya in 2025. If you're curious about TED's curation, find out more at TED.com slash curation guidelines. And that's it for today. TED Talks Daily is part of the TED Audio Collective.
This talk was fact-checked by the TED Research Team and produced and edited by our team, Martha Estefanos, Oliver Friedman, Brian Green, Lucy Little, and Tansika Sangmarnivong. This episode was mixed by Christopher Fasey-Bogan. Additional support from Emma Taubner and Daniela Balarezo. I'm Elise Hugh. I'll be back tomorrow with a fresh idea for your feed. Thanks for listening.