UN carbon market stuck in legal limbo
Following the postponement of Cop26, offset developers and investors must wait many months for uncertainty to be resolved
The UN Framework Convention on Climate Change’s (UNFCCC’s) carbon market is trapped in legal limbo, as countries have failed to reach agreement on whether it should be brought into the new global climate regime. Developers and investors around the world face almost a year of not knowing whether their clean-energy projects will earn the carbon offsets that they rely on to guarantee their viability. The problem stems from UN negotiators’ failure to reach consensus on a market mechanism to support the Paris Agreement. The 2015 treaty set out the broad principles of a global offset market that would help climate finance to flow to emerging and developing nations and assist them in bringing down
Also in this section
12 November 2024
Standards have been agreed for a mechanism under Article 6.4 of the Paris Agreement to trade carbon credits internationally
8 November 2024
The energy sector will need all viable technologies to meet surging demand as AI and datacentres drain power grids
31 October 2024
Russia still aspires to become a major supplier of hydrogen, CO₂ storage capacity and carbon credits, despite financial constraints and the loss of Western technology and expertise
30 October 2024
Occidental subsidiary signs agreement with Enterprise Products Partners for pipelines and transport services for Bluebonnet hub
