Forming an international alliance to promote a sustainable carbon credit market

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The new alliance, formed by the UK, France, Singapore, Kenya and Panama, aims to send “a strong signal on the use of carbon credits by businesses.”

Smoke from a coal-fired power plant in Neurath, western Germany. (Photo: Getty Images/VNA)

On June 24, Britain, France, Singapore, Kenya and Panama announced their intention to agree on basic principles for carbon credits, and form an alliance to encourage companies to buy these green credits.

Experts say this is the strongest policy support ever for the carbon credit market, which could help bring billions of dollars in climate finance to developing countries.

For decades, carbon market advocates have been trying to establish a mechanism for buying and selling credits that would help businesses offset their emissions.

Although countries agreed on a UN-backed system at the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, in November 2024, many businesses remain reluctant to participate.

Mr Ravi Menon, Singapore’s Ambassador for Climate Action, said the carbon market is an important lever to promote climate action. However, buyers have lacked confidence in the market after evidence of misconduct in some projects emerged.

For his part, Bill Winters, CEO of Standard Chartered, stressed the need to re-establish “a virtuous cycle.”

Meanwhile, UK Climate Minister Kerry McCarthy said the new alliance aims to send a “strong signal about the use of carbon credits by businesses”./.

Source: https://baolangson.vn/thanh-lap-lien-minh-quoc-te-thuc-day-thi-truong-tin-chi-carbon-ben-vung-5051154.html