Asean gathers pace to grow a regional carbon market even as UN talks run into speed bumps

[DUBAI] The draft text for Article 6.4 of the Paris Agreement was released on Wednesday (Dec 6), as the first week of climate talks concluded in Dubai, the United Arab Emirates.

With several outstanding issues that countries have not been able to agree on reflected in the draft text, there is a chance that a final decision on Article 6.4 – which governs rules on an international carbon trading system – will not be adopted at the end of the United Nations Climate Change Conference (COP28).

The momentum in the voluntary carbon markets, however, is gaining speed. Several political leaders have made public statements at COP28 supporting the trading of carbon credits in voluntary markets, despite recent high-profile scandals over whether these credits were generated from a real reduction or avoidance of carbon emissions.