The rise of carbon trading between governments

We talk a lot about global carbon markets – but relatively little about the mechanism by which countries trade emissions reductions. This mechanism - Internationally Transferred Mitigation Outcomes ( ITMO ) – is a strategic tool for nations to not only meet their climate commitments, but also make effective use of their carbon sequestration resources.

Heading to COP29 and beyond, the ITMO market is poised for growth with the potential to shift significant financial flows towards sustainable projects and drive innovation in carbon trading practices. It is an area that demands the attention of politicians, businesses and environmental stakeholders as it holds the promise of accelerating our shared journey to a low-carbon future. (Su Meng, Suodi Xi, more at lexology.com)