Paris Agreement Unlocks Global Carbon Trading Opportunities
The UN has approved the first-ever carbon credits under the Paris Agreement's new market mechanism, enabling cross-border emissions trading to support global climate goals.
In a historic move, the United Nations has approved the first-ever carbon credits under the Paris Agreement's new international carbon market mechanism. This landmark development unlocks opportunities for cross-border emissions trading to support climate goals and emissions reduction efforts worldwide.
The new carbon credits, known as Internationally Transferred Mitigation Outcomes (ITMOs), were issued by Switzerland and Peru under the Paris Agreement's Article 6 framework. This allows countries to cooperate on emissions reduction projects and trade the resulting carbon credits, incentivizing climate action globally.
The approved ITMOs represent the first tangible outcomes from the Paris Agreement's long-awaited carbon market provisions, which were finalized at the COP26 climate summit in 2021 after years of complex negotiations.
Source: Al Jazeera
