script async type="application/javascript" src="https://news.google.com/swg/js/v1/swg-basic.js">
HomeCarbon CreditsPNG Suspends New Carbon Credit Deals While Writing New Rules

PNG Suspends New Carbon Credit Deals While Writing New Rules

The government of Papua New Guinea (PNG), suspended new voluntary carbon credit projects while making new rules to govern them.
 
PNG decided to develop a stronger legal framework governing voluntary carbon credit deals. These carbon credit schemes are arrangements made between developers and resource owners directly. Government is not part of the negotiation.
 
While PNG is creating new laws, the environment ministry, Wera Mori, set a moratorium on new carbon deals. This action was due to red flags raised over a new carbon credit deal in the Oro province.
 
The temporary ban covers all the new carbon deals. The ministry said that this is “… To ensure proper stock take and audit of existing voluntary carbon projects.”

Why PNG Bans Voluntary Carbon Credit Deals

The moratorium came after an industry watchdog, got the government’s attention. The group faulted the 100-year carbon credit scheme in Oro province, citing a lack of key details.
 
They also called on Verra, a global certifying body for voluntary carbon standards, to reject the Oro deal.
 
In response, the PNG government banned the deal and other new carbon credit schemes in the meantime. But once the new regulations are in place, the voluntary carbon market in the country will be open again.
 
Though the suspension will impact the carbon credit market big time, it’s a must. In fact, the Oro province governor, Gary Juffa, said that it’s well overdue.
 
Juffa noted that this has been the case for far too long already. The so-called “carbon cowboys” have been collecting big profits from carbon credit deals. But they are giving the forest stewards and caretakers in the province very little.
 
The coalition of other concerned society groups is also pressuring the government to have strict rules regulating the market. They said that there are already voluntary carbon projects in every part of PNG.
 
Without the safeguards like free, prior, and informed consent (FPIC), the market will take advantage of the native landowners.
 
FPIC is a legal tool meant to protect native landowners against commercial loggers.

The Carbon Credit Market and PNG

Carbon credits are regarded as a pivotal means for countries to hit net-zero emissions goals. Unfortunately, outside Europe, the voluntary carbon credit market remains unregulated. And the case of PNG is one example.
 
The country is home to the world’s 3rd largest tropical rainforest. It keeps 7% of the earth’s biodiversity, making PNG so attractive to carbon financiers.
 
Even more important, protecting the forests is vital to PNG’s climate goals. That is to halve emissions by 2030 and be carbon neutral by 2050.
 
Also, PNG has been the world’s biggest tropical timber exporter since 2014. But, over 70% of timber production in the country is illegal, according to reports.
 
So, if carbon cowboys continue to sway landowners to do unregulated carbon projects, the forests will be at risk.
 
Hence, having safeguards on these projects is crucial for PNG’s carbon market to thrive, ensuring that there is proper oversight
Most Popular
LATEST CARBON NEWS

New Rules to Jumpstart China’s Voluntary Carbon Credit Market

The Ministry of Ecology and Environment (MEE) in China released guidelines signalling the revival of the domestic voluntary carbon market (VCM), alongside revealing the...

Canada Insures Carbon Price Contracts with $7B Funding

About 50% of the Canada Growth Fund for clean technology investments is allocated for special contracts aimed to bolster companies' confidence in making substantial...

World Bank’s Push for Forest Carbon Credit and Climate Finance

The newly appointed President of the World Bank, Ajay Banga, unveiled plans to launch a mechanism for certifying forest carbon credits in the coming...

California’s Bold Move: Say Goodbye to Gas Lawn Mowers in 2024

California enacted a law in 2022 to phase out gas-powered vehicles by 2035, and now it’s planning to do the same for millions of...
CARBON INVESTOR EDUCATION

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...