U.N. climate summit reaches carbon markets deal

The final deal adopted by nearly 200 countries will implement Article 6 of the 2015 Paris Agreement https://www.reuters.com/business/cop/toughest-tasks-un-climate-talks-article-6-co2-markets-2021-10-26, setting the rules for allowing countries to partially meet their climate targets by buying offset credits representing emissions cuts by others. Companies as well as countries with vast forest cover had pushed for a robust deal on government-led carbon markets in Glasgow, in the hope also of legitimising the fast-growing global voluntary offset markets.

Negotiators closed a deal to settle rules for carbon markets at the U.N. climate summit in Scotland on Saturday, potentially unlocking trillions of dollars for projects to help curb climate change. The final deal adopted by nearly 200 countries will implement Article 6 of the 2015 Paris Agreement https://www.reuters.com/business/cop/toughest-tasks-un-climate-talks-article-6-co2-markets-2021-10-26, setting the rules for allowing countries to partially meet their climate targets by buying offset credits representing emissions cuts by others.

Companies as well as countries with vast forest cover had pushed for a robust deal on government-led carbon markets in Glasgow, in the hope also of legitimising the fast-growing global voluntary offset markets. Critics worry that offsetting could go too far in allowing countries to continue emitting climate-warming gases, making some wary of a hasty deal.