Berliner Boersenzeitung - Controversial carbon credits flood COP28, yet still no rules

EUR -
AED 4.100273
AFN 78.60757
ALL 98.166966
AMD 432.286638
ANG 1.997847
AOA 1023.661719
ARS 1274.492205
AUD 1.739351
AWG 2.012159
AZN 1.902168
BAM 1.95574
BBD 2.26123
BDT 136.075794
BGN 1.958829
BHD 0.422187
BIF 3332.496993
BMD 1.116315
BND 1.454255
BOB 7.738761
BRL 6.322034
BSD 1.119965
BTN 95.745041
BWP 15.144532
BYN 3.665087
BYR 21879.783696
BZD 2.24963
CAD 1.559549
CDF 3204.942189
CHF 0.935299
CLF 0.027413
CLP 1051.967484
CNY 8.048081
CNH 8.048713
COP 4704.554582
CRC 567.282465
CUC 1.116315
CUP 29.582361
CVE 110.261592
CZK 24.899757
DJF 199.433835
DKK 7.461011
DOP 65.907963
DZD 148.865399
EGP 55.928271
ERN 16.744732
ETB 151.194627
FJD 2.537725
FKP 0.84048
GBP 0.840567
GEL 3.05914
GGP 0.84048
GHS 13.887571
GIP 0.84048
GMD 80.937172
GNF 9698.700213
GTQ 8.598734
GYD 234.312757
HKD 8.722499
HNL 29.141099
HRK 7.532941
HTG 146.54547
HUF 402.867531
IDR 18412.786848
ILS 3.96752
IMP 0.84048
INR 95.543378
IQD 1467.15465
IRR 47010.84053
ISK 145.891703
JEP 0.84048
JMD 178.534481
JOD 0.791807
JPY 162.594147
KES 144.755526
KGS 97.622219
KHR 4481.861466
KMF 492.857526
KPW 1004.683995
KRW 1561.859763
KWD 0.343145
KYD 0.933371
KZT 571.02235
LAK 24221.251321
LBP 100346.698283
LKR 335.109642
LRD 223.983077
LSL 20.217275
LTL 3.29619
LVL 0.675249
LYD 6.178809
MAD 10.389879
MDL 19.509397
MGA 5019.844837
MKD 61.528098
MMK 2343.908628
MNT 3989.456408
MOP 9.015121
MRU 44.32763
MUR 51.47373
MVR 17.25866
MWK 1941.939975
MXN 21.73009
MYR 4.795735
MZN 71.336723
NAD 20.217275
NGN 1788.71739
NIO 41.208726
NOK 11.593835
NPR 153.192265
NZD 1.897963
OMR 0.429497
PAB 1.119965
PEN 4.129072
PGK 4.654856
PHP 62.294316
PKR 315.375252
PLN 4.268489
PYG 8941.723611
QAR 4.081974
RON 5.106255
RSD 117.226377
RUB 90.497203
RWF 1603.750428
SAR 4.186446
SBD 9.31055
SCR 15.922308
SDG 670.351558
SEK 10.907859
SGD 1.452108
SHP 0.877249
SLE 25.344455
SLL 23408.578004
SOS 640.080215
SRD 40.8365
STD 23105.476908
SVC 9.799697
SYP 14514.168387
SZL 20.222375
THB 37.223582
TJS 11.546543
TMT 3.912686
TND 3.376696
TOP 2.614527
TRY 43.377235
TTD 7.596765
TWD 33.732379
TZS 3021.006621
UAH 46.488763
UGX 4097.873335
USD 1.116315
UYU 46.59856
UZS 14520.55117
VES 105.163869
VND 28936.572095
VUV 135.210671
WST 3.101714
XAF 655.936725
XAG 0.034565
XAU 0.000349
XCD 3.016899
XDR 0.815775
XOF 655.936725
XPF 119.331742
YER 272.496621
ZAR 20.143411
ZMK 10048.183034
ZMW 30.104069
ZWL 359.453134
  • CMSD

    0.0472

    22.06

    +0.21%

  • CMSC

    -0.0500

    22.05

    -0.23%

  • SCS

    0.0000

    10.5

    0%

  • BCC

    0.9200

    91.91

    +1%

  • BTI

    1.2700

    42.64

    +2.98%

  • BCE

    -0.0700

    21.56

    -0.32%

  • NGG

    1.2500

    71.28

    +1.75%

  • AZN

    0.8500

    68.81

    +1.24%

  • JRI

    0.1600

    12.9

    +1.24%

  • GSK

    0.4991

    37.64

    +1.33%

  • RELX

    0.5300

    54.57

    +0.97%

  • RBGPF

    64.5000

    64.5

    +100%

  • BP

    0.1300

    29.76

    +0.44%

  • RYCEF

    0.0200

    10.72

    +0.19%

  • VOD

    0.1800

    9.45

    +1.9%

  • RIO

    -0.1100

    62.64

    -0.18%

Controversial carbon credits flood COP28, yet still no rules
Controversial carbon credits flood COP28, yet still no rules / Photo: Giuseppe CACACE - AFP/File

Controversial carbon credits flood COP28, yet still no rules

The COP28 climate talks have been flooded with announcements hyping controversial carbon credits before rules for them have been hammered out, with environmental groups fearing "greenwashing" on a massive scale.

Text size:

The concept behind the credits has taken a major hit recently as scientific research has repeatedly shown claims of reduced emissions under the schemes are often hugely overestimated -- or simply non-existent.

Carbon credits allow corporations -- or countries under certain conditions -- to offset their greenhouse gas emissions.

One credit equals the reduction or removal of one tonne of CO2 from the atmosphere, often in developing countries by projects focusing on things like fighting deforestation.

Scientists stress that any offsetting should not be used as a passport to continue polluting, with emissions needing to fall by almost half this decade to meet global warming goals.

US climate envoy John Kerry declared on Sunday that his country's Energy Transition Accelerator for developing nations -- one of a number being touted -- as a "bold new idea" .

However environmental groups quickly expressed scepticism, pointing to the past failures of similar schemes.

The initiative -- a partnership between the US government, the Rockefeller Foundation and billionaire Jeff Bezos's Earth Fund -- aims to shift developing countries from dirty to clean fuel.

Under the scheme, companies -- and potentially countries -- will be able to buy credits for carbon emissions from projects that do things like boost renewable energy, build electrical transmission lines or "retire" coal plants.

- 'Smoke and mirrors' -

Amazon, Bank of America, Mastercard, McDonald's, Morgan Stanley, PepsiCo and Walmart are some of the US corporate giants lining up to pilot projects in Chile, the Dominican Republic and Nigeria.

Kerry said the initiative could generate tens of billions of dollars, insisting the credits will be "high integrity" and "not the kind of carbon crediting that you read about in some headlines."

He was referring to a series of investigations in recent months that have raised doubts about the effectiveness and integrity of the vast majority of carbon credits already in circulation.

Erika Lennon, a lawyer for the Center for International Environmental Law, said the announcement was "merely smoke and mirrors distracting from the US's paltry contribution to climate finance".

Washington said it was working with the World Bank to ensure the quality of the credits.

Separately on Friday, the World Bank said it had plans to help 15 developing countries in Africa, Southeast Asia and Latin America to earn money from carbon credits by 2028 for forest protection.

Such projects have previously been shown to be the least reliable for reducing emissions, but the World Bank insisted its scheme would be of "high integrity".

AFP has also identified hundreds of events dedicated to carbon credits at COP28, many led by companies seeking a way to compensate -- at least on paper -- for their carbon footprint.

- Vagueness -

Many different players have rushed to set up their own carbon credit rules, slowing down negotiations for a common regulatory framework, according to environmental groups.

This absence of common rules has given companies free rein to engage in widely-criticised offsetting as part of a voluntary carbon credit market.

At COP28, negotiators have been tasked with looking into applying Article Six of the 2015 Paris Agreement.

It allows countries to cooperate on hitting their emissions-reduction targets -- including by swapping carbon credits.

It also envisages a reform of the global carbon credit market that has been dragging on for years.

The Climate Action Network, which brings together hundreds of environmental groups, was scathing about the lack of ambition.

"Just like last year, we feel the draft (agreement) is more likely to remove ambition from climate action than carbon dioxide from the atmosphere," it added.

The network also criticised the vagueness of planned rules for a future UN supervisory body overseeing a global carbon market, which it said could leave the "door too wide open for risky practices" and to protect the rights of the communities involved.

These contentious rules could still be pushed through by countries impatient to start offsetting their emissions, led by wealthy and oil-producing nations -- and possibly developing countries keen to reap vast sums from the market.

On Friday, around 10 countries including the United States, France and the UAE -- as well as Colombia, Kenya and Senegal -- called for carbon markets to be "complementary" to efforts to reduce emissions.

They said that there must be "transparency" and "high-integrity standards" for these markets to reach their potential.

(O.Joost--BBZ)