COP28 and carbon markets
With COP28 concluding this week in Dubai, carbon offsetting and carbon markets will be at the forefront of the minds of the many public and private sector leaders who were in attendance. After a tumultuous year for carbon markets, now is a perfect time to take a step back and take stock of the opportunities that lie ahead and the steps that can be taken post-COP.
As predicted by Reuters reporter Jake Spring in his recent article, a major topic of discussion at this year’s conference was how best to establish international trading for carbon credits. Since the first endorsement of carbon credits by the UN in Article 6 of the 2015 Paris Agreement, negotiators from around the world have been collaborating on the development of regulations to facilitate international carbon credit trading. At COP28, international representatives took steps to iron out further regulations, including the potential adoption of standardized methodologies for the issuance of carbon credits.
The swift adoption of standardized methodologies is critical to the ability of nations to confidently engage with carbon markets, and it’s critical they are agreed upon and implemented as soon as possible. While carbon credits are not a panacea, they do represent an immediate opportunity and instrument for the advancement of decarbonization activities. Further, they offer a critical opportunity for low- and middle-income nations to generate new revenue streams that can be re-invested to accelerate decarbonization.
At DevvStream, we’re committed to working with not only private sector companies, but with municipalities and federal governments as well to eliminate barriers to entry into carbon markets. In fact, we recently announced an agreement with Green Cross International to partner with federal governments to explore opportunities for the generation of Internationally Transferred Mitigation Outcomes (“ITMOs”), a specific type of carbon credit issued under the Paris Agreement, Article 6 framework. We look forward to continuing our work now that this year's COP is coming to a close.