Negotiations on carbon markets are held up by the distinctions between avoidance, removal, and reduction of emissions under the Paris Agreement.
The UN climate conference COP29, taking place in Baku, Azerbaijan, from November 11 to 22, is set to address key challenges in implementing the global carbon credit programme outlined under Article 6 of the Paris Agreement. This provision allows countries to collaborate and leverage market mechanisms, such as carbon markets, to achieve their climate targets.
A major point of contention during these negotiations is the differentiation between carbon avoidance, removal, and reduction. These three concepts are central to the creation of effective carbon markets but have sparked debate on how they should be defined and implemented in practice.
Carbon Avoidance refers to actions that prevent the release of additional greenhouse gases into the atmosphere. This includes reducing emissions from sectors like energy, transportation, and agriculture.
Carbon Removal, on the other hand, involves actively removing carbon dioxide (CO2) from the atmosphere. This can be done through techniques like direct air capture, afforestation, or ocean-based methods.
Carbon Reduction generally focuses on reducing the overall volume of emissions produced, often through technological innovation or improvements in efficiency. While these efforts help mitigate future emissions, they do not necessarily remove CO2 from the atmosphere.
The complexity arises because these methods are not interchangeable, yet the terms are often used without clear boundaries, complicating the negotiation process. Countries and stakeholders are debating which types of credits should be eligible for carbon markets and how to ensure that each method contributes meaningfully to the climate goals outlined in the Paris Agreement.
To better understand these challenges, Audrey Tan and David Fogarty, hosts of The Straits Times, discussed the issue with Mr. Anshari Rahman, director of policy and analytics at investment firm GenZero, who was a former climate negotiator for Singapore. Rahman emphasized that a clear and universally accepted framework is necessary to ensure that carbon markets function as intended, promoting real and sustained emissions reductions across the globe.
As negotiators continue to refine the details of the global carbon market framework, consensus on these key issues remains elusive, and COP29 will likely be pivotal in determining the future of international climate cooperation.
