Negotiators have agreed on establishing a U.N.-backed system for trading carbon credits.
On the opening day, attending nations agreed on several crucial ground rules on the U.N.’s Article 6.4 Supervisory Body, which under the Paris Agreement is designed to allow countries to trade carbon credits to meet their emissions reduction targets.
“This will allow support to start flowing in 2025.”
He said the standards were “the product of over 10 years of work within the process.”
“When operational, these carbon markets will help countries implement their climate plans faster and cheaper, driving down emissions,” he said.
Using carbon credits has attracted criticism from across the board, from environmental activists to net-zero policy critics.
“International carbon pricing, covering every sector of the economy, is in theory the most efficient way that we can tackle climate change,” Harry Wilkinson, head of policy at the Global Warming Policy Foundation, told The Epoch Times.
However, he said it would have to be accompanied by removing all renewable energy subsidies and other climate-related market distortions.
“We would also need to think about the impact on developing countries,” he said.
“Unfortunately, these accompanying actions are unlikely to happen. So what we’ll end up with is just another cost for consumers on top of all the others.”
Researcher Ben Pile, who runs the Climate Debate UK campaign group, told The Epoch Times that it is “no surprise that the only outcome of the meeting looks set to be the agreement of carbon credit quality standards.”
“This is what green billionaires and the blob they have been funding for decades have always wanted. And it is no surprise that the scheme is U.N.-backed,” he said.
Pile claimed that “billionaire interests have been well served by the U.N.’s and other global agencies’ financialization of energy and emissions regulation.”
He noted that many leaders have skipped this year’s summit.
President Joe Biden will not attend; the United States will instead be represented by White House climate adviser and veteran Democratic Party strategist John Podesta. Chinese leader Xi Jinping has sent a deputy, and European Commission President Ursula von der Leyen is not going because of political developments in Brussels.
‘Unlocking of Billions in Climate Finance’
Rebecca Iwerks, a co-director at nonprofit group Namati, told Reuters: “A lot of funders are worried that the markets aren’t stable enough, credible enough to be able to invest more in. It could actually hinder the development of the market if you don’t have a strong standard.”“This COP has a declared focus on finance, and the unlocking of billions in climate finance directed towards those countries that need it the most can only be welcomed,” the association wrote.
High on the agenda is a deal to provide up to $1 trillion in annual climate finance for developing countries, replacing the previous target of $100 billion.
The U.N. stated earlier this year that raising the annual climate finance target beyond the $100 billion goal was now essential, noting that $6 trillion will be needed to support developing countries’ climate action plans by 2030.
On Nov. 11, the U.N. stated that only sufficient financing would ensure “the protection of human rights from the negative impacts of climate change.”
The U.N. did not return a request for comment by press time.
