Draft Decision Shows No Progress on Carbon Markets

GLASGOW | 10 November 2021 | Ministers released a negotiating text as year-end climate negotiations enter their final phase, but the draft shows no progress on two thorny issues: how to measure and report emissions back to the UNFCCC and how to manage international carbon markets under the UNFCCC.

The rules for three key carbon market articles are virtually unchanged since Saturday, with areas of disagreement in brackets. You can find the documents here:

• Article 6.2 (cooperative approaches)
• Article 6.4 (centralized hub)
• Article 6.8 (non-market approaches)

At issue is whether national governments will have to correspondingly adjust their carbon inventories to reflect voluntary carbon market transactions and whether a transaction tax should be imposed on bilateral transactions to support adaptation.