๐๐๐๐ฉ ๐๐๐ช๐๐๐ฉ ๐ข๐ฎ ๐๐ฉ๐ฉ๐๐ฃ๐ฉ๐๐ค๐ฃ?
Progress towards a global carbon market at COP29: delegates agreed on a global carbon market framework under Article 6 of the Paris Agreement, allowing countries and companies to trade carbon credits to achieve climate targets.
๐๐๐ฎ ๐๐ฉ ๐ข๐๐ฉ๐ฉ๐๐ง๐จ?
A global carbon market would allow for a more cost effective, scalable and coordinated pursuit of climate goals. A few examples:
โขย ย Shared Climate Goals: Article 6 allows countries and entities to work together to achieve their nationally determined contributions (NDCs), aligning efforts with the global temperature targets of the Paris Agreement.
โขย ย Cost-Effectiveness: A global carbon market allows emissions reductions to occur where they are cheapest, optimizing resources and reducing the overall cost of achieving net-zero targets.
โขย ย Scalability and Liquidity: By connecting markets worldwide, it creates a larger pool of participants, increasing market liquidity and scaling investments in emissions-reduction projects across diverse sectors and geographies.
โขย ย Harmonized Standards and Accountability: It establishes consistent rules for measuring, verifying, and trading emissions reductions, ensuring transparency, avoiding double counting, and aligning efforts globally to meet net-zero goals.
โขย ย Interaction with Compulsory and Voluntary Markets: A global market can link compliance systems for greater efficiency, validate and harmonize voluntary credits, and integrate both into unified frameworks that prevent double counting and enhance transparency.
๐ฟ๐๐ฉ๐๐๐ก๐จ:
โขย ย At COP29 delegates reached a significant agreement to establish a global carbon market framework under Article 6 of the Paris Agreement. This framework enables countries and companies to trade carbon credits, each representing one ton of carbon dioxide either removed from the atmosphere or not emitted, to meet their climate targets.
โขย ย Key elements involve setting up a registry to track credits and determining the level of information sharing and project accountability. Countries without the resources to create their own registries to use U.N. services without U.N. endorsement of the credits.
โขย ย NDCs: Nationally Determined Contributions
โขย ย ITMOs: Internationally Transferred Mitigation Outcomes