The agreement, announced at a high-level gathering in the China Pavilion, proposes a framework for governments and market participants to coordinate policies, exchange information and develop carbon trading systems.
Turkey is hosting COP31, while Ethiopia will host COP32.
Under the initiative, governments and intergovernmental organizations are encouraged to establish stronger oversight of carbon credit programs and improve standards governing the credits issued. The proposal also seeks closer cooperation among trading systems and greater participation in projects that generate carbon credits.
Participation is voluntary, and the arrangement carries no legal obligations. Countries joining the initiative will not be required to recognize one another’s carbon credits, connect their trading platforms or registries, exchange data or provide funding.
Nor does the agreement automatically permit international transfers of carbon credits under Article 6 of the Paris Agreement, which establishes rules for international cooperation through carbon markets.
Beyond improving trading standards, the initiative provides for joint projects, technical assistance and policy discussions. It encourages responsible credit purchases and cooperation on the infrastructure needed to support carbon markets.
Li said these measures could help carbon credits contribute more effectively to international climate efforts and the transition toward lower-carbon economies.
COP31, formally the 31st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, opened Monday and continues through Nov. 20.
Source: Iwpost.com
