Governments in emerging markets eye carbon credits to promote green tech – IEF chief

Governments in emerging markets eye carbon credits to promote green tech – IEF chief

Governments are looking at ways to use carbon credits to promote clean energy technologies in the developing world, according to International Energy Forum (IEF) Secretary General Joseph McMonigle.

Governments in emerging markets, particularly energy producers, have embraced carbon credits, he told the S&P Global Carbon Markets Conference in Barcelona.

Saudi Arabia, for example, held its first auction in October 2022, selling 1.4 million tonnes of high-quality, CORSIA-compliant and Verra-registered carbon credits.

Elsewhere in the Middle East, Abu Dhabi Global Market and AirCarbon Exchange are setting up a voluntary carbon market based in the UAE capital, aiming to launch in January.

A carbon credit is a permit that allows a country or organisation to produce a certain amount of carbon emissions, which can be traded if the full allowance is not used. They come from four categories: avoided nature loss, including deforestation; nature-based sequestration, such as reforestation; avoidance or reduction of emissions, such as methane from landfills; and technology-based removal of carbon dioxide from the atmosphere like carbon capture, utilisation and storage

McMonigle stated that carbon credits could significantly contribute to achieving net zero by 2050, but only if participants address issues over limited supply and integrity.

He added that trade in voluntary carbon credits could grow