15 Nov 2021
COP26 Paves Way for Intl Carbon Trading
The Index Today
After climate talks in Glasgow, countries have come together to agree on carbon-reducing plans. Negotiations taking place for carbon cuts and funding were concluded upon the agreement that all participating countries must revisit and revise their pledge in a years’ time to counter devastating effects of climate change.
With the carbon-trading agreement, businesses can now endorse certain rules and implement plans to lower total emissions that are a part of the trading system. Thomas Lingard, global climate and environmental director at Unilever PLC said, “It is unquestionably good news that an agreement has been reached that allows everyone to move forward.”
The Glasgow negotiations point towards the agreeability of all nations to reduce carbon emissions, which are said to be the main cause of rising temperatures. However, many have criticized the pledges as they do not provide a mechanism to actually implement carbon emission tactics, but rather simply requests nations to follow through on good will. Many delegates at the conference were disappointed by the lack of concrete commitments.
The carbon trading agreement is designed to provide a standardized U.N certified credit which enables governments to regulate carbon markets used by companies. Enric Arderiu Serra, head of environmental products at Mercuria Energy Trading SA said, “The rules help define the framework for how governments can use the private sector to support them in meeting their climate targets.” At present, there are multiple carbon markets which are regulated by various unions which provide limits for carbon emission. Under the new U.N plan, all carbon markets will follow through a framework to meet designated standards for emissions and quality.