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Carbon Trade Lobby Says UN Deal May Cut Outlays in Poor Nations

  • Trade body says draft will restrict carbon credit demand
  • Half climate pledges favor markets in planned global deal

The United Nations’ draft climate proposal may reduce clean-technology investment to developing countries because it still limits the role of global carbon markets, according to the International Emissions Trading Association.

The latest draft keeps language from a previous pact that discouraged demand for UN emission credits over the past decade, said Dirk Forrister, president of the Geneva-based industry group. Countries can only buy carbon credits from one another to meet climate pledges if it’s “supplemental to domestic action,” according to one of the options in the preliminary plan published Oct. 5.