Global Coalition Aims to Boost Carbon Credit Market Confidence

A coalition involving Britain, Kenya, and Singapore has been formed to create guidelines for purchasing carbon credits, a move hailed by market experts as unprecedented policy support for carbon markets.

For decades, advocates have struggled to establish a thriving market for carbon credits, which companies buy to offset emissions. Although a compliance system was set at COP29 in Baku, corporate hesitance persists. By COP30 in Brazil, five nations aim to set principles urging businesses to adopt carbon credits, potentially directing billions in climate finance to countries in need.

Singapore's Climate Action Ambassador, Ravi Menon, emphasizes the market's potential to drive climate solutions, hindered by trust issues due to past malpractices. CEO of Standard Chartered, Bill Winters, states companies need incentives to engage in activities beyond profit, underlining the need for government-like standards to revive faith in carbon markets.

(With inputs from agencies.)