The importance of carbon markets can increase rapidly after the Conference of parties 26 Glasgow meet. Examine (200 Words)
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Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· Soon after the 200-odd countries signed the Paris Agreement in December 2015, governments began making rules for operationalising the agreement.
· First, whether or not the old carbon credits (certified carbon emissions, or CERs) issued under an earlier regime the Clean Development Mechanism of the Kyoto Protocol are still valid.
· The second issue pertained to ‘double counting’. If an emission reduction takes place in one country and another entity in another country buys the carbon credits.
· The third issue related to a fee levied on each carbon trading transaction to feed a fund to help poor countries adapt to the vagaries of the warming world.
· There was an agreement that there would be no double counting. It has been left to the respective government to decide which activity (project) would go towards extinguishing its own commitment and which would be for tradable carbon credits.
· On ‘share of proceeds’, it was agreed that 5 per cent of the proceeds of market transactions would be levied and put into a fund.
· There is no fee for bilateral transactions, but countries are “encouraged” to voluntarily give. Switzerland has agreed to put $25million into the Adaptation Fund.
K. V. A 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
