COP28: Carbon Credit Deadlock

AFP/APP

Paris: After a relentless two weeks of negotiations at COP28, no agreement was reached on carbon credit sales. This outcome brought relief to non-profits that had opposed the proposed deals but also raised concerns about a potential regulatory void that might escalate greenwashing.

Following COP28, President Sultan Al Jaber’s announcement of a historic fossil fuel transition was overshadowed by the failure to agree on a regulatory framework for carbon credits.

This setback sent policy advisors back to the drawing board for next year’s COP29 in Azerbaijan. Carbon credits offer a means for corporations or countries to offset greenhouse gas emissions through projects claiming to absorb or store CO2.

Each credit represents the reduction or removal of one tonne of CO2 from the atmosphere. Typically situated in developing countries, these projects often target issues like deforestation.

However, the credibility of these credits has been marred by controversy. Scientific research consistently highlights significant overestimations in emission reductions. Negotiations in Dubai aimed to enhance regulation, particularly under Article Six of the landmark 2015 Paris Agreement, to allow states to enter the carbon offset market.

Despite high expectations, talks fell short in finalizing these crucial details, highlighting the ongoing challenges in establishing a robust framework for carbon credits.