During the ongoing COP29 climate summit, countries have already given the go-ahead for quality standards for carbon credits on the first day. This could pave the way for a UN-backed global carbon market, aimed at financing projects that reduce greenhouse gas emissions.
There are also plans for governments to establish a climate finance agreement, but the uncertainty surrounding Donald Trump’s potential return as president has dampened expectations. Trump has hinted that he may pull the US out of the Paris Agreement, which would affect the planned carbon market.
Carbon credits allow countries and companies to offset their emissions by investing in projects that reduce or remove carbon from the atmosphere. According to data, the UN-backed market could generate up to $250 billion annually and reduce 5 billion tons of carbon emissions per year by 2030.
