Baku, Azerbaijan — In a groundbreaking move on the first day of the COP29 climate summit, countries have officially endorsed carbon credit quality standards, setting the stage for a UN-backed global carbon market aimed at reducing greenhouse gas emissions.
This agreement paves the way for the long-awaited carbon market to potentially launch as early as next year. The market would allow countries and companies to invest in projects worldwide that either cut CO2 emissions or remove carbon from the atmosphere. These projects could range from planting CO2-absorbing mangroves to providing clean cooking stoves in rural communities.
“This endorsement brings us closer to operationalizing the carbon market,” said Juan Carlos Arredondo Brun, a former Mexican climate negotiator now with carbon market firm Abatable. “It represents a significant step in global efforts to address climate change.”
The approved standards aim to ensure the integrity of carbon credits by addressing concerns that some projects might not deliver their promised environmental benefits. However, activists emphasize that more needs to be done to protect the rights of communities affected by such projects.
“Without strong standards, we risk undermining the credibility of the entire market,” warned Rebecca Iwerks, co-director at the non-profit group Namati. “Investors need assurance that their funds are making a real difference.”
Some negotiators expressed frustration over the process, noting that the standards were agreed upon by a small group of technical experts without broader input. “We endorse what they have done, not the way they have done it,” stated Kevin Conrad, executive director for the Coalition for Rainforest Nations.
As the summit continues, countries will work to finalize additional rules to strengthen the market. The International Emissions Trading Association predicts that by 2030, trading in the UN-backed market could generate $250 billion annually and cut carbon emissions by 5 billion metric tons each year.
Reference(s):
cgtn.com
