COP29 countries agree on global carbon credit market to combat global warming

From Investing.com: 2024-11-23 12:55:47

Countries at COP29 climate conference agreed on rules for a global carbon credit market to combat global warming. Projects like tree planting or wind farms in poorer nations earn credits for emissions reductions, bought by countries and companies. Negotiators in Azerbaijan discussed details for a U.N. trading system and bilateral trading. The EU pushed for U.N. oversight, while the U.S. sought autonomy in deals.

The final agreement compromised on a registry system, allowing some countries to issue credits without U.N. approval. The EU accommodated the U.S. by securing registry services for less wealthy nations, while the U.S. ensured transactions on the registry wouldn’t be seen as U.N. endorsements. The system was deemed viable despite criticisms.

Switzerland initiated bilateral trading in January by purchasing credits from Thailand, with more countries following suit. Clear rules for integrity and transparency are crucial for boosting deal flow. IETA estimates a U.N.-backed market could reach $250 billion annually by 2030, offsetting 5 billion metric tons of carbon emissions.



Read more at Investing.com: COP29 agrees deal to kick-start global carbon credit trading By Reuters