After a fortnight marked by rancor and disappointment but little progress, countries left the UN climate talks in Madrid having failed to reach agreement on major issues including guidance for Article 6 of the Paris Agreement on climate change, which relates to international cooperation among countries through carbon markets. Importantly, the lack of a decision does not prevent countries from cooperating through markets or international trading, or from using market-based policies to meet their national targets. Indeed, the Paris Agreement itself acknowledges that countries may use international emission transfers to meet their Nationally Determined Contributions (NDCs). In the closing plenary, several countries acknowledged their intention to continue with international cooperation through carbon markets, even in the absence of agreement at COP 25. Carbon markets provide a critical tool for countries to enhance ambition: Economic analysis by EDF shows that carbon markets could achieve nearly double the emissions reductions that countries have committed to so far under the Paris agreement, at no extra cost. “COP 25 showed that the yawning gap between what citizens are demanding on climate action, and what UN negotiations are delivering, is wider than ever. Carbon markets can help fill that gap by promoting international cooperation that allows countries to cut greenhouse gas emissions faster and deeper than they can on their own. To view the full article visit the Environmental Defense Fund.
