Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Carbon markets, which allow for buying and selling of carbon emissions with the objective of reducing global emissions, is an unfinished agenda from last year’s meeting in Katowice, Poland.
The market mechanism
· Under the Paris Agreement, every country has to take action to fight climate change. These actions need not necessarily be in the form of reduction in greenhouse gas emissions, which can constrain economic growth. India, for example, has said it would reduce its emissions per unit of GDP.
· Only the developed countries have included absolute emission cuts in their action plans. Yet, there is scope for absolute emissions reductions in developing countries too.
· For example, a brick kiln in India can upgrade its technology and reduce emissions. But because India does not need to make absolute reductions, there is no incentive to make this investment.
What is contentious
· Developing countries have several million unsold CERs (certified emission reductions), each referring to one tonne of carbon dioxide-equivalent emission reduced, from the Kyoto regime.
· Under the Kyoto Protocol, only developed countries had the obligation to reduce emissions. In the initial phase, some of these were interested in buying CERs from projects in India or China, which were not obliged to make reductions.
· India has about 750 million unsold CERs and, along with other similarly placed countries, wants these credits to be valid in the new mechanism too.
· Developed countries are opposing it on the ground that the rules and verification procedures under the Kyoto Protocol were not very robust; they want the new mechanism to start with a clean slate.
· The new mechanism envisages carbon credits as commodities that can be traded multiple times among countries or private parties.
· It is important to ensure that in this process, credits are not counted at more than one place; whoever sells carbon credits should not simultaneously count these as emissions it has reduced.
Chandresh Pathak 5 years
Kindly review
IAS Parliament 5 years
Good attempt. No need to explain about carbon market. Keep Writing.
Shivangi 5 years
Please review. Thank you.
IAS Parliament 5 years
Good attempt. Keep Writing.
Akira 5 years
KINDLY REVIEW
IAS Parliament 5 years
Good attempt. Keep Writing.
Chinna 5 years
Kindly review... thank you...
IAS Parliament 5 years
Try to explain why carbon market is contentious. Keep Writing.
