During the third day of the climate summit (COP28), held in Dubai, the World Bank announced ambitious plans for the growth of global carbon markets with high integrity, as it was decided that 15 countries will generate income from the sale of carbon credits generated by preserving their forests.
By next year, these countries will have produced more than 24 million of these stocks, and the number could reach 126 million by 2028, and these stocks could generate up to $2.5 billion under the right market conditions, much of it returning to communities and countries.
The 15 countries include Chile, Costa Rica, Côte d'Ivoire, DRC, Dominican Republic, Fiji, Ghana, Guatemala, Indonesia, Laos, Madagascar, Mozambique, Nepal, Congo, and Vietnam. These countries will be part of the World Bank's Forest Carbon Partnership (FCPF), which has supported pilot programs since 2018 to create effective carbon credits.
Carbon market is a common term for a trading system through which countries and sovereign institutions, as well as companies, can buy or sell carbon credits in an attempt to meet national emission limits under the Kyoto Protocol or other agreements, such as those between European Union countries. The adoption of this term is due to the fact that carbon dioxide is the dominant greenhouse gas, and emissions of other gases are measured in units called carbon dioxide equivalents.
The countries and parties participating in COP 28 are moving quickly to contain the climate changes that world leaders have expressed more concern about, which was evident in the rapid agreement on a preliminary version, published on Friday, of a draft agreement that will be discussed by negotiators of about 200 countries during the conference that began on Thursday.
By supporting five of those countries in 2024, the World Bank will help governments and communities access global carbon markets. All 15 countries are expected to be in a position to address global carbon markets by 2028.
Blessed with natural resources, these countries are poised to benefit from carbon markets by earning income from protecting forests and using their land more sustainably, said World Bank Group President Ajay Banga.
“Through the World Bank’s High Integrity Carbon Markets Engagement Roadmap, we will collaborate with partners to scale up effective global carbon markets,” he added. “Our experience with the FCPF and other initiatives has led to a formula that can catalyze efficient carbon markets and deliver on their promises for people and planet.”