HomeCarbon MarketsCarbon Market Talks Ongoing at COP26

Carbon Market Talks Ongoing at COP26

Discussions about international carbon markets have faced some challenges at COP26. The US and EU expressed concerns about the proposed transaction tax on carbon trading. Proceeds of this tax would support nations that are the most impacted by climate change.

It is reported that US officials feel such a plan is not feasible. They are concerned that the federal government will end up having to foot the bill for such taxes.

While all nations can agree that the global offset market needs to become more transparent and that verification processes (and standards) should improve, there are two competing thoughts:

1.) Create a bilateral carbon credit exchange that could help countries meet national targets.
2.) Create a global marketplace for trading offsets.

Norway and Singapore seem to be trying to get nations on board with merging the two.

About the discussions, Norwegian Climate and Environment Minister Espen Barth Eide was quoted as saying that “It’s difficult.” Though there is “a can-do mood.”

The global carbon market is currently valued at $100 billion – up from just $300 million in 2018. Some project it could reach $22 trillion by 2050.

While the carbon market can help reduce emissions, improve the environment, and spark economies across the globe, critics feel that the industry does little to encourage net-zero emissions.

World leaders disagree.

Yes, the industry has its flaws, but carbon offsets are integral in the fight against climate change. If they weren’t, the heavy focus on the offset industry at COP26 wouldn’t be taking place.

Contrary to what critics may say, offsets were never designed to be the only way to combat climate change. However, when used alongside technological advances, and increased regulation, they play a significant role.

It will be an environmental win if nations can figure out how to make the global carbon market work for all.  Leaders have until Friday.

Most Popular

Brazil’s Bill Will Allow Loggers to Earn $24M from Carbon Credits

Brazil’s Congress passed a bill that will make carbon credits available to private companies with forest concessions, serving a first step in regulating the...

Global Renewable Energy to Break Records in 2023, IEA Says

Global additions of renewable power capacity will increase by a third this year, says the International Energy Agency (IEA). In the IEA's 2023 Renewable Energy...

Equatic Reveals First-of-a-Kind Ocean CO2 Removal Tech, Inks Deal with Boeing

Ocean carbon removal startup Equatic launches breakthrough low-cost, gigaton-scale climate technology and signs a pre-purchase deal with Boeing. L.A.-based Equatic is an UCLA Samueli School...

Lithium-Ion Wars: US Battery Imports Soar by 66%, Setting New Record as Domestic Production Ramps Up

According to S&P Global, in the first quarter of 2023, US imports of lithium-ion batteries surged by nearly 66% from the previous year, reaching...

What are the Effects of Methane Emissions and Why Should We Care?

What are the effects of methane emissions? That’s the multi-million dollar question in the world’s battle over global warming as methane was often overlooked...

Carbon Credits and the Future of Sustainable Business: Exploring Best Practices

The trading of carbon credits can help entities and the world meet their climate goals by cutting carbon emissions and practicing sustainable business. While...

Revolutionizing Textile Recycling with HTC

A Virginia-based startup, Circ, has developed a unique hydrothermal processing technology for recycling blended textiles, like polyester-cotton blends. With fast fashion's emissions and environmental...

Carbon Credits and the Sustainable Development Goals: Aligning Climate Action with Global Priorities

Carbon credits from climate actions represent a crucial part of a strategy to mitigate climate change while supporting the global priorities on advancing sustainable...