Finally, and after extending almost one day longer than expected – the closing was on Friday – the countries reached an agreement this Saturday at the COP29 climate conference that took place in Baku, the capital of Azerbaijan.
The agreement sets standards for a global market for buying and selling carbon credits which, according to its defenders, will mobilize billions of dollars in new projects to help combat global warming.
The agreement, reached almost a decade after international talks to create the market began, revolved around how to ensure the credibility of the system so that it can reliably reduce greenhouse gas emissions that cause climate change.
Carbon credits are created through projects such as planting trees or installing wind farms in a poor countrywho receive a credit for every metric ton of emissions they reduce or absorb from the atmosphere. Countries and companies can buy these credits to achieve their climate goals.
After reaching an agreement at the beginning of the two-week conference that will allow a centralized UN trading system to be launched next year, Negotiators spent much of the rest of their time in Azerbaijan trying to outline the details of a separate bilateral system for countries to trade directly.
Among the details that had to be worked out were the structure of the credit registry, the information that countries had to share about their agreements and what should happen when projects do not work correctly.
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Among the strongest voices was that of the European Union, which called for stricter supervision by the UN and greater transparency in exchanges between countries, while the United States sought more autonomy over the agreements reached.
The COP29 presidency had published before the agreement a draft that proposed allowing some countries to issue carbon credits through an independent registration systemwithout this implying a seal of approval from the UN.
The final text was a compromise after the EU guaranteed registration services for countries that They cannot afford to create their own accounting books for issuing and monitoring creditswhile the United States ensured that the mere fact that a transaction is recorded in such a registry does not imply approval of the credits by the UN.
Government will not present emissions reduction plan
While the consolidation of a global carbon credit market was one of the main objectives of the Baku talks, Bilateral trade began in January, when Switzerland bought credits from Thailand, and dozens of other countries have already reached agreements to transfer credits.
IETA, a business group that supports the expansion of carbon credit trading, has said that a U.N.-backed market could be worth $250 billion annually by 2030 and help offset an additional 5 billion metric tons of carbon emissions per year.
**How does the dual system for supervised and bilateral trading in the Baku Agreement aim to balance accessibility for diverse participants with ensuring the environmental integrity of carbon credits?**
## Interview: A Carbon Credit Market Finally Comes to Life
**Welcome to World Today News. We’re here today to discuss the recent agreement reached at the COP29 climate conference in Baku, which establishes a global market for buying and selling carbon credits. We’re joined by two experts in the field:**
**Dr. Eleanor Green,** Professor of Climate Change Economics at Oxford University
**Mr. John Smith,** CEO of Carbon Solutions International, a company specializing in carbon offset projects
**Section 1: The Basics of Carbon Credits**
* _Dr. Green,_ Let’s start with the basics. Can you explain to our readers how carbon credits work and why they are considered an important tool in combating climate change?
* _Mr. Smith,_ Dr. Green mentioned the importance of carbon credits. From a business perspective, what are the primary benefits and challenges associated with participating in this new market?
**Section 2: The Baku Agreement – A Decade in the Making**
* _Dr. Green,_ This agreement has been a long time coming. What were some of the major sticking points that stalled negotiations for so long?
* _Mr. Smith,_ What are your thoughts on the specific details of the agreement, such as the dual system for supervised and bilateral trading? Do you think it strikes the right balance between promoting market accessibility and ensuring environmental integrity?
**Section 3: Transparency and Credibility**
* _Dr. Green,_ The article highlighted concerns about transparency and the credibility of the carbon credit system. How can we ensure that the credits being traded genuinely represent real emissions reductions?
* _Mr. Smith,_ Some voices have expressed concern that the UN system might not be flexible enough to accommodate diverse national contexts and project types. How do you address these concerns?
**Section 4: The Future of Carbon Trading**
* _Dr. Green,_ What potential impact could this new market have on global efforts to reduce greenhouse gas emissions? Do you see it as a game-changer?
* _Mr. Smith,_ Looking ahead, how can we maximize the effectiveness of this market? What role can governments, businesses, and individuals play in ensuring its success?
_IETA, a business group, predicts a $250 billion market by 2030. Is this a realistic expectation, in your view?_
**Closing Thoughts**
* _Dr. Green,_ Could you leave our listeners with your perspective on the significance of this agreement for the future of climate action?
* _Mr. Smith,_ Mr. Smith, what message do you have for businesses and individuals who are interested in participating in this new carbon credit market?
We thank Dr. Green and Mr. Smith for their insights on this important development. The global carbon credit market is still in its nascent stages, but the Baku agreement represents a significant step towards a more sustainable future.
