From the sentence which follows the part in boldface it seems that the author believes that one of the principles of capitalism is that one of the parties in a capitalist transaction must be left worse off while the other profits. Otherwise it's not capitalism. This is a sort of exploitative theory of capitalism.
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JKBelieve What offends conservatives about carbon credits is not some green absurdity but the very core of the capitalist economic system : the free exchange of goods and services, a.k.a. the deal.Just a guess with my very limited knowledge on carbon credits:
They are offended by carbon credits because of the capitalist economic system says that there needs to be free exchange of goods and services (and carbon credits would prevent this).Carbon credits would prevent the free exchange of goods and services because ... ???