From carbon markets to CBAM, where we stand on climate finance after COP28

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

🗞️ Driving the news: COP28 highlighted the urgent need for substantial financial resources to address climate change, particularly in the Global South 
• The Loss and Damage Fund was established on the very first day of the conference, hailed as a milestone in climate finance 
• However, the conference failed to operationalize Article 6 of the Paris Agreement, which is critical for establishing a framework for carbon credit trading

🔭 The context: Implementing Article 6 is essential for reducing the cost of climate action and facilitating international carbon trading 
• Disagreements over control measures and methodologies for carbon removals led to a lack of consensus

🌍 Why it matters for the planet: The inability to agree on a global carbon pricing mechanism at COP28 represents a missed opportunity to mobilize significant funding for green energy transitions and nature preservation 
• This gap hinders efforts to decarbonize economies and combat climate change effectively

⏭️ What's next: Discussions at COP28 also included exploring targeted international taxes for green investment and the potential of the Carbon Border Adjustment Mechanism (CBAM) to motivate stronger climate action

💬 One quote: "We need to send into our capitalist world a significant price signal … that facilitates the move we need towards clean energy." (Sheldon Whitehouse, U.S. Senator)

📈 One stat: The International Emissions Trading Association estimates that Article 6 could halve the total cost of implementing nationally determined contributions to $250 billion by 2030

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