Diplomats Approve Carbon Credit Trade Rules at COP29

COP29 in Baku has made significant progress by agreeing on new rules for carbon trading, marking a breakthrough after years of deadlock. This agreement allows wealthy nations to purchase carbon credits from developing countries, potentially enabling them to meet their emission targets while delaying domestic cuts. However, critics argue that the rules were hastily approved without thorough review, raising concerns about trust and efficacy in carbon markets. The backdrop of Donald Trump’s recent election victory casts uncertainty over U.S. participation in climate finance, which is crucial for developing nations striving to enhance their climate commitments. Experts stress that this COP is pivotal for establishing clear financial goals, especially as the previous $100 billion annual target remains unmet. As negotiations continue, the focus will also be on defining contributors to climate finance, which could include emerging economies like China and Gulf states.