“The opportunities presented by this UN carbon market across all sectors are enormous, especially now that there are strong environmental safeguards, robust standards and a clear system for redress to ensure integrity, inclusivity and efficiency,” he said.
The 2015 Paris Agreement, which committed the world to limit temperature rise to well below 2C and ideally to 1.5C, also envisaged that countries could participate in cross-border trading of carbon reductions.
New rules for the carbon market mechanism were agreed at the UN’s COP29 climate summit in Azerbaijan in 2024.
At the time, Greenpeace said the agreement left loopholes that would allow fossil fuel companies to continue polluting.
But other environmentalists said that, while not perfect, it provided some clarity that was absent from global efforts to regulate carbon credits.