Africa: Changes looming for carbon markets as developing economies implement laws around Paris Agreement commitments
By Kieran Whyte, Partner and Head of the Energy, Mining and Infrastructure Sector Group, and Clara Hansen, Candidate Attorney, Baker McKenzie Johannesburg
In the last few years, the number of voluntary carbon markets has increased as a result of the operationalisation of the Paris Agreement and a general influx of investors into the sector.
Principles under the Paris Agreement.
Article 6 of the Paris Agreement was introduced to allow countries to voluntarily cooperate with each other to achieve emission reduction targets set out in their Nationally Determined Contributions (NDCs). Under Article 6, a country (or countries) will be able to transfer carbon credits earned from the reduction of their greenhouse gas (GHG) emissions to help other countries meet their climate targets. Such cre...