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illuminem summarises for you the essential news of the day. Read the full piece on Carbon Herald or enjoy below:
🗞️ Driving the news: The United Nations has taken a significant step forward in global carbon markets by endorsing its first methodology under the Paris Agreement’s Article 6.4 mechanism
• This development will allow renewable energy projects, such as small-scale wind and solar initiatives in developing nations, to generate internationally tradable carbon credits
• The move signals a shift in carbon market infrastructure, expanding global cooperation on emissions reductions
🔭 The context: Article 6.4, also known as the Paris Agreement Crediting Mechanism (PACM), is designed to replace the Kyoto Protocol's Clean Development Mechanism (CDM), which registered thousands of emissions-reduction projects over the years
• The goal of the new mechanism is to facilitate international cooperation on emissions reductions and ensure that carbon credits from one country’s projects can count toward another country’s climate goals
• By doing so, it aims to avoid double-counting, bring more transparency, and enhance trust between developed and developing nations
🌍 Why it matters for the planet: This methodology could be a game-changer for renewable energy development in developing countries, a critical area for meeting global net-zero ambitions
• According to the International Energy Agency (IEA), renewable energy deployment in developing economies must triple by 2030 to stay on track with climate targets
• The World Bank projects that cooperation under Article 6.4 could help reduce emissions by as much as 5 billion tons annually by 2030 while unlocking billions in climate finance
⏭️ What’s next: As the UN Supervisory Body moves closer to adopting the methodology, attention turns to upcoming sessions in late October and the COP30 summit in Brazil
• However, there are still hurdles to overcome, including the approval of key methodologies in sectors like forestry, agriculture, and industry
• Experts warn that carbon trading should not replace efforts to reduce emissions at the source, ensuring that the focus remains on systemic reductions
💬 One quote: “NDC cooperation under mechanisms like Article 6.4 could bolster as much as 5 billion tonnes of emission cuts annually by 2030 and unlock approximately $250 billion in climate finance per year, according to the World Bank”
📈 One stat: The voluntary carbon market was valued at approximately $2 billion in 2023, with projections to surpass $100 billion by 2030, driven by trading under Article 6.4
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