US To Unveil 'guardrails' Needed For Carbon Markets To Succeed

Washington, (APP - UrduPoint / Pakistan Point News - 28th May, 2024) President Joe Biden's administration is set Tuesday to unveil "guardrails" it says will ensure that carbon offset markets effectively reduce greenhouse gas emissions, a significant win for advocates of the contentious schemes.

Treasury Secretary Janet Yellen will lay out the government's first broad guidelines for "high-integrity" carbon markets, aimed at boosting confidence in a system that critics have panned as greenwashing.

To transition to a low-carbon economy, "We need to use all the tools at our disposal -- creatively, thoughtfully, and at scale," she will declare in an event with other senior officials, including White House senior climate adviser John Podesta.

"I believe that harnessing the power of markets and private capital is critical. This includes efforts to grow high-integrity voluntary carbon markets.

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Carbon credits enable corporations and countries to offset their greenhouse gas emissions, with each credit representing the reduction or removal of one tonne of CO2, often in developing countries through projects combating deforestation.

The carbon offsets market is currently worth around $2 billion, but has come under intense fire recently after research has shown that claims of reduced emissions under the schemes are often hugely overestimated -- or simply non-existent.

Yellen will outline principles emphasizing integrity in three key areas: supply-side credits tied to genuine emissions reductions or removals; demand-side corporate accountability that prioritizes emission reduction; and market integrity through greater transparency and reduced complexity.