Carbon Trading and COP – Can it be Different this Time around
Bloomberg reports that according to Alok Sharma, the President of COP, the Glasgow climate talks will get tougher. The reason cited is that the negotiators are in the process of nailing down a deal that has been underway for the last six years and being chased. Getting a deal on international carbon market trading is the main benchmark of success at the summit COP26 being held. It would also be a major success for an issue that has been due ever since Paris Agreement was signed in the year 2015. It is all about Article Six and two types of carbon trading. The first one is carbon credits exchanges from one country to another in which one country will pay to another so that emissions are cut on its behalf. The second one is an offset traded by the private and public players. According to Bloomberg News, an agreement that is designed well would not only help in cutting the emissions but also rake up to $1 trillion of investment in the poorer countries and foster low carbon innovations.