Carbon credits talks collapse at Cop28 over integrity concerns
- Media Manager
- Dec 13, 2023
- 1 min read
Climate Change News
Written By: Matteo Civillini
Published: December 13th, 2023
Hopes of clinching a deal on carbon trading mechanisms evaporated under the desert sun in Dubai after a tussle between the European Union and the United States.
Countries failed to agree on key rules to trade offsets bilaterally and to kickstart a long-awaited global UN-sanctioned market.
Two opposing, and ultimately irreconcilable, forces fueled tense marathon negotiations regularly stretching into the early hours. Getting the system up and running as quickly as possible, on one hand, while ensuring integrity and transparency on the other.
The US championed what observers described as a “light-touch, no-frills” approach to regulations. That would hand a prominent role to private sector players from the much-criticised voluntary market.
A bloc led by the EU along with African and Latin American states pushed back. They wanted stronger checks and balances and a loosening of confidentiality clauses that could have prevented scrutiny.
The risk many highlighted is that, with a weak framework, the new mechanism could become a dumping ground for junk credits.
After late-night informal negotiations tried to salvage a deal, the presidency put “take it or leave it” text on the table. It contained confidentiality provisions many found unacceptable and was roundly rejected. Negotiators will try again to land a deal at Cop29 next year.
