Legal Dispute Resolution Techniques for Carbon Trading in the Construction Industry: A Comprehensive Review and Future Directions

Abstract

Carbon trading has been identified as an effective measure for the construction industry to meet its emission reduction targets. However, carbon trading is subject to disputes due to carbon accounting challenges and lack of standardized emissions data collection. The aim of this research is to conduct a comprehensive literature review of the legal disputes resolution techniques in carbon trading in the construction industry. The databases for the search were Scopus and Web of Science. 106 relevant papers were used for data analysis. Content analysis was used to extract and synthesize the legal dispute resolution techniques. Scientometric analysis was conducted using VOSViewer software. From findings, major causes of disputes were issuance of invalid carbon credits, perceptions of inequity of carbon trading benefits to community, ambiguity over carbon offset sources, and intellectual property disagreements. Significant legal disputes resolution techniques in carbon trading in construction industry were arbitration, dispute review boards, mediation, and litigation. Finally, a framework for dispute resolution in carbon trading construction projects is also developed. This study is significant as implementation of these dispute resolution techniques will facilitate successful project outcomes in carbon trading projects for the construction industry.