Global efforts to work together to tackle climate change are back in the spotlight as COP28, held in Dubai, United Arab Emirates, just concluded on December 12. One of the most important items on the agenda is the setting of standards for carbon credits and regulations related to Article 6 of the Paris Agreement on carbon markets. Article 6 of the Paris Agreement sets out principles for carbon markets and the establishment of international carbon markets that allow countries to trade carbon credits. This article allows countries to voluntarily cooperate with each other to achieve emission reduction targets within their Nationally Determined Contributions (NDCs). Following the adoption of the United Nations Framework Convention on Climate Change (UNFCCC) on 21 March 1994, the Paris Agreement was developed and adopted by 196 countries at COP21, held in Paris in 2015. The Paris Agreement, a legally binding international treaty under the UNFCCC on climate change, sets clear targets to limit rising temperatures, limit greenhouse gas (GHG) emissions and facilitate green growth. It also allows countries to submit their NDCs, which show how each country intends to reduce carbon emissions. ( Indra Allen and Fifiek Mulyana)
Blended financing of carbon projects with greater social impact.
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