Among the major objectives of the Glasgow Summit was to frame the foundation of an international carbon trading system listed in the Paris Agreement to achieve the target of net zero emissions by 2050. It would enable nations to transfer credits to each other and offset their emission targets. Critics of the trading system, and there are many, say it would give leeway to developed countries and companies that are highly polluting to stave off making deeper cuts in their low emissions by buying credits from poorer countries at exploitative prices. There are also major differences over whether the new trading system will recognize historical emissions permitted under earlier protocols. Others want rules that permit double credits for the nation funding a particular carbon reducing project, such as the regeneration of forests to act as a carbon sink, and for the country implementing it. A third issue is whether a share of the revenue from such a bilateral trading agreement will go toward the UN’s Adaptation Fund. There have also been concerns about the integrity of the accounting system for such credits. What is ‘international carbon trading system’ here?

Among the major objectives of the Glasgow Summit was to frame the foundation of an international carbon trading system listed in the Paris Agreement to achieve the target of net zero emissions by 2050. It would enable nations to transfer credits to each other and offset their emission targets. Critics of the trading system, and there are many, say it would give leeway to developed countries and companies that are highly polluting to stave off making deeper cuts in their low emissions by buying credits from poorer countries at exploitative prices. There are also major differences over whether the new trading system will recognize historical emissions permitted under earlier protocols. Others want rules that permit double credits for the nation funding a particular carbon reducing project, such as the regeneration of forests to act as a carbon sink, and for the country implementing it. A third issue is whether a share of the revenue from such a bilateral trading agreement will go toward the UN’s Adaptation Fund. There have also been concerns about the integrity of the accounting system for such credits. What is ‘international carbon trading system’ here?