Primary Country (Mandatory)

United States

Other Country (Optional)

Set News Language for United States

Primary Language (Mandatory)
English
Other Language[s] (Optional)
No other language available

Set News Language for World

Primary Language (Mandatory)
English
Other Language(s) (Optional)

Set News Source for United States

Primary Source (Mandatory)
CNN
Other Source[s] (Optional)

Set News Source for World

Primary Source (Mandatory)
AajTak
Other Source(s) (Optional)
  • Countries
    • India
    • United States
    • Qatar
    • Germany
    • China
    • Canada
    • World
  • Categories
    • National
    • International
    • Business
    • Entertainment
    • Sports
    • Special
    • All Categories
  • Available Languages for United States
    • English
  • All Languages
    • English
    • Hindi
    • Arabic
    • German
    • Chinese
    • French
  • Sources
    • India
      • AajTak
      • NDTV India
      • The Hindu
      • India Today
      • Zee News
      • NDTV
      • BBC
      • The Wire
      • News18
      • News 24
      • The Quint
      • ABP News
      • Zee News
      • News 24
    • United States
      • CNN
      • Fox News
      • Al Jazeera
      • CBSN
      • NY Post
      • Voice of America
      • The New York Times
      • HuffPost
      • ABC News
      • Newsy
    • Qatar
      • Al Jazeera
      • Al Arab
      • The Peninsula
      • Gulf Times
      • Al Sharq
      • Qatar Tribune
      • Al Raya
      • Lusail
    • Germany
      • DW
      • ZDF
      • ProSieben
      • RTL
      • n-tv
      • Die Welt
      • Süddeutsche Zeitung
      • Frankfurter Rundschau
    • China
      • China Daily
      • BBC
      • The New York Times
      • Voice of America
      • Beijing Daily
      • The Epoch Times
      • Ta Kung Pao
      • Xinmin Evening News
    • Canada
      • CBC
      • Radio-Canada
      • CTV
      • TVA Nouvelles
      • Le Journal de Montréal
      • Global News
      • BNN Bloomberg
      • Métro
Cremo Italian Bergamot Body Wash Buy Now
Men's Manicure & Pedicure Kit Buy Now
Bandhani Georgette Saree Buy Now
Digital Resin Strap Watch Buy Now
Mommy & Me Pajamas Buy Now
Mens Fashion Henley Shirt Classic Buy Now
Hoowel Smart Watch for Men and Women Buy Now
Women's Elastic Waist Running Shorts Buy Now
Hyaluronic Acid Serum for Face Buy Now
3-Pack No-See-Thru Yoga Leggings Buy Now
4-Compartment Bento-Style Lunch Box Buy Now
URAO Laptop Celeron N5095 Quad-Core Buy Now
OLEVS Women Watches Buy Now
Ankle Resistance Bands for Booty Workouts Buy Now
Women's Joggers Pants Buy Now
ASUS Vivobook Go 14 L410 Ultra Thin Laptop Buy Now
Lee Women's Ultra Lux Comfort Jeans Buy Now
Workout Running Shorts Buy Now
Knitted Turtleneck Buy Now
Kate Spade Aviators Buy Now
MoreBack to News Headlines
How would a carbon market function? | Explained

How would a carbon market function? | Explained

The Hindu
Monday, December 16, 2024 5:23 AM GMT

COP29 in Baku boosts carbon market standards for international emissions control, highlighting potential benefits and challenges of carbon trading.

The story so far: COP29, the ongoing climate conference in Azerbaijan’s capital Baku, has given a fillip to the idea of using carbon markets to curb carbon emissions by approving standards that can help in the setting up of an international carbon market as soon as the coming year.

Also read: A guide to COP29 climate jargon

A carbon market is a market that allows the buying and selling of the right to emit carbon into the atmosphere. Suppose a government wants to limit the amount of carbon emitted into the atmosphere. It can issue certificates called carbon credits that allow the holder of the certificate to emit a certain amount of carbon into the atmosphere. One carbon credit is equivalent to 1,000 kilograms of carbon dioxide. By limiting the number of carbon credits that are issued, governments can control how much carbon is released into the environment. It should be noted that anyone who doesn’t hold carbon credits to their name would not be allowed to emit any carbon into the atmosphere. Carbon credits were first used in the 1990s in the U.S., which introduced the cap-and-trade model to control the emission of sulphur dioxide.

Individuals and firms that hold carbon credits but don’t actually need them for any reason can sell their credits to interested buyers. The price at which these carbon credits are traded is determined by market forces, which in this case are the supply of carbon credits and the demand for these certificates. A carbon market can also include the trading of carbon offsets. In this case, a business that pollutes the environment for example, can purchase carbon offsets sold by an environmental NGO that promises to plant trees that suck a certain amount of carbon emissions out of the atmosphere for each offset that it sells.

Pollution of the environment and climate change caused by carbon emissions is a classic case of what economists call an externality. An externality is caused when the cost of an economic activity is not properly accounted for (or internalised) by the market price system due to the absence of well-defined property rights. For example, a business that uses raw materials such as iron will have to pay the supplier who owns the iron to be able to procure and use it, thus incurring a certain cost. But when the same firm emits carbon into the atmosphere, it doesn’t usually have to pay any money to anyone. In other words, firms are generally able to emit their waste into the atmosphere for free. This of course leads to unhindered pollution of the atmosphere as firms in this case have no financial incentive to curb their carbon emissions. Carbon markets in which the right to pollute is traded for a price can solve the problem by imposing a certain cost on firms for polluting the atmosphere, helping to curb emissions in the process.

Also read: Takeaways from COP29 

The intersection of standardised accounting frameworks and technological advancements has improved the ability of corporations to monitor and report their carbon emissions. While, this is difficult for the vast majority of small businesses in the developing world, particularly in accurately capturing supply chain emissions, ongoing developments, like real-time data tracking of the energy sector, continue to enhance the granularity and reliability of corporate carbon accounting. However, corporations have preferred a voluntary reporting system, like the Carbon Disclosure Project. They have been loathe to government interventions limiting carbon emissions, arguing that such budgeting may lead to output restrictions or rise in costs. They also point to varied production processes, some that might have diverse supply chains that might make it difficult to find the optimal carbon budget for their facilities. Large multinational corporations such as ExxonMobil and General Motors have advocated for carbon markets that allows free trading of carbon credits among firms at a price determined by market forces, that would allow these firms to purchase carbon credits from other firms, which don’t need them as much. This they say, helps allocate carbon credits more efficiently than government diktat.

Read full story on The Hindu
Share this story on:-
Run 3 Space | Play Space Running GamePlay Run 3, the ultimate space tunnel running game with 300+ challenging levels!Adv.
Traffic Jam 3D | Online Racing GameTraffic Jam 3D is a game where you’ll be driving through heavy traffic.Adv.
Duck Hunt | Play Old Classic GamePlay the classic 1984 light gun shooter game Duck Hunt on your browser.Adv.
More Related News
Markets trade lower after firm start, fresh foreign fund outflows dent sentiment

Equity markets start strong but face selling pressure, waiting on U.S.-India trade talks, with foreign fund outflows impacting sentiment.

China-linked hackers target Taiwan's chip industry with increasing attacks, researchers say

While hacking to steal data and information about the industry is not new, there is an increase in sustained hacking campaigns from several China-aligned hacking groups.

Rupee rises 12 paise to 85.80 against U.S. dollar in early trade

Rupee strengthens against US dollar amid global oil price drop and India-US trade talks, despite FII outflows.

SBI to issue up to ₹20,000 crore bonds to domestic investors 

SBI plans to raise ₹20,000 crore through bonds for domestic investors in FY26, boosting shares by 1.74%.

Ajay Kumar Shrivastava takes over as HAL director for engineering, R&D

Ajay Kumar Shrivastava appointed as Director (Engineering and R&D) at HAL, with extensive experience in aeronautics industry.

Commerce Ministry to investigate, clamp down on dumping, “import surges”

Ministry of Commerce in India cracks down on import surges and dumping, initiating investigations on various products from 12 countries.

Gold declines ₹500 to ₹98,870/10 g; silver falls ₹1,000 to ₹1.11 lakh/kg

Gold and silver prices fluctuate, influenced by global economic factors and investor sentiment, impacting precious metal markets.

Sensex, Nifty close slightly higher amid global market uncertainty, tariff-related uncertainty

Sensex and Nifty close slightly higher amid global market uncertainty, with investors cautious about Q1 FY26 earnings.

CAPHRA red flags WHO’s recent policy shift against tobacco harm reduction

CAPHRA warns WHO's anti-tobacco harm reduction stance disproportionately impacts India, jeopardizing livelihoods and public health equity.

Services exports cut India’s trade deficit by 9.4% in Q1

India's trade deficit shrinks 9.4% to $20.3 billion in Q1, with exports up 6% to $210.3 billion.

NPCI International adds 13 more banks in UPI-PayNow linkage to ease remittances 

NPCI International enhances UPI-PayNow linkage, adding 13 banks for cross-border remittances between India and Singapore.

Global markets turned unpredictable in FY’25; external environment may continue to stay uncertain: Wipro Chairman Rishad Premji

Wipro Chairman Rishad Premji discusses the transformative financial year 2025, emphasizing AI's role and commitment to shareholders and employees.

Kolhapuri chappal row: Bombay HC dismisses PIL against Prada; questions petitioners’ right to sue

Bombay High Court dismisses PIL against Prada for unauthorized use of Kolhapuri chappals, questioning petitioners' standing.

Parking Slot | Free Parking GamePlay Parking Slot, the best online 3D car driving and parking game.Adv.
Slope Ball Run - Play OnlineSlope Game takes you on an exciting journey of a ball on special paths.Adv.
How is China leading the green energy sector?

China leads global green energy race with strategic planning, massive investments, and control over supply chain and technology.

Kenvue ties up with API to launch ‘Cough Clinics’ to train Drs 

Kenvue launches Cough Clinics with API to train doctors for effective cough diagnosis and treatment in India.

Visakhapatnam, Ranchi, Vijayawada, Nashik and Raipur emerge as career hubs in LinkedIn study

A list put out by LinkedIn highlights tier-2 and tier-3 growth pockets for professionals looking to relocate, tap into new industries or grow their careers locally

DLF forays into Mumbai with premium housing project 

DLF Ltd. enters Mumbai with premium residential project The Westpark in Andheri West, targeting businessmen, professionals, and film industry.

Zoho develops AI-powered large language model with speech recognition

Zoho unveils AI platforms including Zia LLM, Zia Agent Studio, and MCP server, emphasizing privacy and efficiency.

Axis Bank Q1 net profit slips 4% to ₹5,806 crore on higher provisions

Axis Bank's Q1 FY26 financial report shows a 4% decline in net profit, growth in NII, and impact on asset quality.

Supply PNG to households at a uniform rate, PNGRB tells CGD firms

PNGRB directs CGD entities to supply piped natural gas uniformly to domestic consumers, addressing pricing discrepancies and misuse concerns.

Wipro posts a 10% rise in Q1 net profit YoY; returned $1.3 billion to its shareholders over the last 6 months

Wipro's Q1 results show growth in net profit, revenue, and large deal bookings despite challenges in the IT services market.

Adani Group sells 20% stake in Adani Wilmar for ₹7,150 crore

Adani Group sells 20% stake in AWL Agri Business to Wilmar International for ₹7,150 crore.

Stock markets close lower on selling in IT stocks, fresh foreign fund outflows

Sensex and Nifty drop as IT shares sell off, investors cautious ahead of U.S.-India trade talks outcome.

Rupee falls 15 paise to close at 86.07 against U.S. dollar

Rupee weakens against the dollar due to trade uncertainties, equity market trends, and volatile oil prices.

India can secure oil even if Russian imports sanctioned, says Oil Minister Puri

India prepared to diversify oil imports if Russian supplies are affected by sanctions, says Oil Minister Hardeep Singh Puri.

© 2008 - 2025 Webjosh  |  News Archive  |  Privacy Policy  |  Contact Us