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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The United Nations has launched a new global carbon market aimed at helping countries meet their emissions reduction goals under the Paris Agreement
• This market allows nations to fund climate projects abroad, like methane capture, and earn credits toward their own emission targets
• With the potential to unlock billions in investment, it marks a significant step in international climate financing
🔭 The context: This market replaces the previous U.N. carbon system, which expired in 2020 after being criticized for inefficiency
• The U.N. now seeks to implement a more rigorous system with high standards to ensure that funded projects contribute genuinely to reducing greenhouse gas emissions
• This shift comes amid growing skepticism about the effectiveness of voluntary carbon markets
🌍 Why it matters for the planet: The U.N.’s carbon market could provide crucial funding for high-impact climate projects, particularly methane capture, which is a potent but often overlooked greenhouse gas
• By emphasizing projects that wouldn't occur without market funding, the system aims to ensure greater environmental integrity and spur innovation in carbon reduction technologies
• However, its success will depend on maintaining the credibility of carbon credits
⏭️ What's next: As the market opens, countries will submit projects for funding, with an initial focus on methane
• The U.N. will continue developing standards for other types of emissions reductions, with further discussions expected at COP30 in Brazil
• The market’s long-term viability will hinge on its ability to maintain high integrity and deliver verifiable results
💬 One quote: "We’re showing how carbon markets aligned to the Paris Agreement can deliver real-world solutions — and there’s plenty more to come." — Martin Hession, Chair of the U.N. group writing the carbon market standards
📈 One stat: The European Union aims to use U.N. carbon credits to reduce its emissions by 90% below 1990 levels by 2040, with carbon credits accounting for up to 5% of that reduction
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