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COP29 nations approve new rules for creation of global carbon market

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on France24 or enjoy below:

🗞️ 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

Click for more news covering the latest on carbon market

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