After more than six years of negotiations, John Kerry believes world leaders are ready to reach a deal on carbon-trading rules.
This would be a massive victory for the offset market and be a significant victory for climate diplomacy.
The carbon credit industry has grown exponentially over the past year as companies and governments look for ways to offset their carbon emissions.
However popular, critics feel that the industry lacks the regulatory standards needed to be effective. If world leaders can agree, the industry would become far more transparent – alleviating many concerns.
The carbon trading industry can offset emissions, improve the environment, and spark economic development in areas that need it most. Combined with innovative technology and additional regulations, the global carbon marketplace is a driving force in the fight against climate change – which is why an international standard is so important.
In addition to carbon trading rules, Kerry has been negotiating with Russia and China to reduce their methane gas emission. More than 105 countries have signed up to reduce their methane emissions by 30%. Though China hasn’t signed on, Kerry feels that the country has shown a commitment to doing more than they have been.
The US has set a goal to decarbonize the power sector by 2035 and eliminate coal plants by 2030.
If carbon trading rules are implemented globally, the carbon credit industry will only continue to grow. Right now, the voluntary carbon market is on track to reach $100 billion by 2030 (up from $300 million in 2018). Some experts believe it could be valued at $22 trillion by 2050.
Regarding COP26, Kerry was quoted as saying, ““We have to have a measurement of ambition. This is a long journey and now really is the test of whether we can get there.”