COP29 Approves Creation of UN-Supported Global Carbon Credits Market
Opponents argue that carbon credits will end up being an additional expense for consumers, ultimately serving the interests of wealthy environmental advocates.
A U.N.-backed system for trading carbon credits has been established, as negotiators have agreed.
During the initial day, nations reached a consensus on key rules regarding the U.N.’s Article 6.4 Supervisory Body, which allows countries to trade carbon credits under the Paris Agreement to attain emission reduction targets.
“Support will begin to flow by 2025,” Rafiyev added.
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He highlighted that these standards were crafted after more than a decade of effort within the process.
“When operational, these carbon markets will enable countries to implement their climate plans more efficiently and affordably, reducing emissions significantly,” he added.
Critics of carbon credit usage range from environmental activists to skeptics of net-zero policies.
Harry Wilkinson, head of policy at the Global Warming Policy Foundation, expressed, “International carbon pricing, spanning all sectors of the economy, is theoretically the most effective approach to address climate change.”
However, he emphasized the need to eliminate renewable energy subsidies and other climate-related market distortions.
“We must also consider the impact on developing nations,” he added.
“Unfortunately, these accompanying measures are unlikely to materialize, leaving consumers with another expense on top of existing ones,” Wilkinson concluded.
Researcher Ben Pile, leading the Climate Debate UK campaign group, commented, “It’s not surprising that the only outcome of the meeting seems to be the agreement on carbon credit quality standards.”
“This aligns with the desires of wealthy environmental advocates and the organizations they have long been funding. The U.N. backing of this scheme is no shock,” Pile remarked.
He suggested that “billionaire interests have greatly benefited from the financialization of energy and emissions regulation by global agencies like the U.N.”
Pile highlighted the absence of many leaders at this year’s summit.
President Joe Biden, Chinese leader Xi Jinping, and European Commission President Ursula von der Leyen are not in attendance due to various reasons.
‘Unlocking of Billions in Climate Finance’
Rebecca Iwerks, co-director at the nonprofit organization Namati, told Reuters: “Many funders are concerned that the markets lack stability and credibility to garner more investments.”
“Without stringent standards, the market’s development could be hampered,” she cautioned.
“With a focus on finance at this COP, the release of billions in climate finance to aid the most vulnerable countries is a positive step,” the association stated.
The main agenda includes working towards a deal to offer up to $1 trillion annually in climate finance for developing nations, superseding the previous target of $100 billion.
The U.N. highlighted the necessity of raising the annual climate finance target beyond $100 billion, with projections indicating a need for $6 trillion to back developing countries’ climate action plans by 2030.
On Nov. 11, the U.N. stated that only substantial financing would ensure “the protection of human rights from the negative impacts of climate change.”
The Epoch Times reached out to the U.N. for a response but did not receive any by the time of publication.
Reuters contributed to this report.
