COP29 nations approve new rules for creation of global carbon market

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🗞️ Driving the news: Nations at COP29 in Azerbaijan have agreed on new foundational rules for a UN-backed global carbon market
• These standards would allow countries that reduce emissions to earn "carbon credits" they can sell to higher-emitting nations
• COP29 president Mukhtar Babayev described the move as a “breakthrough,” although further negotiations are needed to finalize the framework

🔭 The context: After nearly a decade of complex talks, nearly 200 countries reached a consensus on essential guidelines for creating a global carbon trading system
• The system would incentivize activities like forest protection and clean energy, assigning credits that equate to a ton of reduced or avoided CO₂ emissions
• These credits help polluting countries meet climate commitments under the Paris Agreement

🌍 Why it matters for the planet: A credible, UN-backed carbon market could raise the standard for carbon credits, especially as the current voluntary market faces issues with transparency and integrity
• By formalizing the carbon credit system, nations aim to ensure real progress in emission reductions, not just offset claims

⏭️ What’s next: The UN must now resolve governance and regulatory questions to finalize the market
The goal is to provide a system that wealthier countries can use to meet emissions targets without compromising on climate action quality

💬 One quote: “It’s hugely significant…[this] opens the door for a fully-fledged market,” - Erika Lennon from the Center for International Environmental Law

📈 One stat: The global carbon market was valued at over $850 billion in 2022, with rapid growth expected as new regulatory frameworks, like those from COP29, enhance market credibility and demand for high-quality credits

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