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illuminem summarizes for you the essential news of the day. Read the full piece on Climate Change News or enjoy below:
🗞️ Driving the news: At the COP28 climate summit, Paraguay and Singapore announced a deal for the South American country to supply carbon offsets to Singapore, despite the absence of agreed UN rules on bilateral carbon offsetting
• This has raised concerns about the integrity of carbon credits due to lax regulations and close ties between the Paraguayan government and industry players
🔭 The context: Paraguay rapidly passed a new law to regulate carbon markets, aiming to position itself as a leading supplier of carbon credits
• However, the law has been criticized for lacking environmental and human rights safeguards and allowing carbon projects within protected areas, potentially leading to the issuance of non-additional carbon credits
🌍 Why it matters for the planet: The deal between Paraguay and Singapore, and others like it, risk undermining the credibility of carbon markets if they repeat the problems seen in the voluntary carbon market, such as over-crediting emissions reductions and failing to protect human rights and the environment
⏭️ What's next: The integrity of international carbon markets depends on establishing clear, robust rules that ensure the additionality and environmental effectiveness of carbon credits
• The failure to reach a consensus on these rules at COP28 highlights the need for continued negotiations and transparency in bilateral deals
💬 One quote: "More and more countries [like Paraguay] and companies are negotiating bilateral agreements, in the absence of comprehensive regulation,” said Jonathan Crook, policy analyst at Carbon Market Watch.
📈 One stat: Singapore’s domestic carbon tax is set to rise from about $3 per tonne to $18 in 2024, prompting its search for carbon offsets abroad.
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