ESG & Investing
UN Carbon Market in Limbo as COP28 Fails to Agree on Standards
- EU opposed deal on market mechanism in push for tougher rules
- Investors face uncertainty over next steps on carbon credits
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A new United Nations-overseen emissions market, which could help channel climate finance to poor countries, was left in limbo after COP28 negotiators failed to agree on standards.
The European Union led a push against recommendations on the functioning of the mechanism at the meeting in Dubai, arguing stricter norms are needed to ensure its environmental and social integrity. The lack of a deal means a delay in launching the program, which would allow companies to compensate for some pollution at home by investing in projects in developing countries to cut emissions or remove carbon dioxide from the atmosphere.