Source: DD News
Context: At the COP29 climate summit in Azerbaijan, countries aim to finalize rules for a global carbon offset trading system under Article 6 of the Paris Agreement, enhancing international cooperation in emission reductions.
About Carbon Offsets:
- Definition: Mechanisms enabling governments or companies to offset their greenhouse gas emissions by funding emission reduction projects elsewhere.
- Examples: Solar installations, electric vehicle adoption, mangrove restoration.
- Purpose: Support emission reduction goals and facilitate global climate finance.
About Article 6 of the Paris Agreement:
- Purpose: Framework for international carbon trading to meet climate goals.
- Mechanisms:
- Article 6.2: Bilateral agreements for trading carbon credits.
- Article 6.4: UN-managed centralized trading system.
- Significance: Drives climate finance to developing countries and ensures compliance with NDCs.
Decisions so far:
- COP26 (Glasgow): Established a broad framework for carbon credit trading.
- COP28 (Dubai): Failed to operationalize the central trading system or clarify bilateral trading rules.
- Current Progress:
- 91 bilateral agreements across 56 countries.
- Concerns remain about double-counting and the robustness of credit verification.
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