International carbon markets at the frontier to the wild west

The failure to establish rules for international carbon markets at COP 25 prevented the adoption of loopholes and double-counting but shifted the responsibility for environmental integrity to individual countries. This creates a risk of a 'wild west' scenario where low-ambition countries may trade 'junk credits' from the Kyoto Protocol era. While the San Jose Principles and Article 77d of the transparency framework offer some paths toward integrity and reporting, the lack of a global agreement leaves carbon markets potentially undermining overall climate action.

• The lack of agreement on carbon market rules at COP 25 is viewed as a 'disaster averted' because the proposed rules would have allowed for the use of old credits and the double-counting of emission reductions.
• Without a global agreement, there is a risk of a 'wild west' scenario after 2020 where countries like Australia and Brazil could sell 'junk credits' from the Kyoto Protocol era to unscrupulous buyers.
• The San Jose Principles, supported by 31 countries, provide a basis for post-2020 markets by ruling out old credits and double-counting, though they currently lack sufficient social, environmental, and human rights safeguards.
• Article 77d of the transparency framework, adopted at COP 24, is the primary remaining mechanism for transparency, requiring countries to report trades and apply corresponding adjustments to prevent double-counting.
• The responsibility for ensuring that post-2020 credits protect human rights and the environment now rests with individual countries, particularly those using credits for national targets or the CORSIA aviation offsetting scheme.

APA

Dufrasne, G. (2020). International carbon markets at the frontier to the wild west. Carbon Market Watch. https://carbonmarketwatch.org/2020/01/20/international-carbon-markets-at-the-frontier-to-the-wild-west/

Chicago

Dufrasne, Gilles. International carbon markets at the frontier to the wild west. Carbon Market Watch, 2020. https://carbonmarketwatch.org/2020/01/20/international-carbon-markets-at-the-frontier-to-the-wild-west/.

Wikipedia

{{cite press release |last1=Dufrasne |first1=Gilles |title=International carbon markets at the frontier to the wild west |publisher=Carbon Market Watch |date=20 January 2020 |url=https://carbonmarketwatch.org/2020/01/20/international-carbon-markets-at-the-frontier-to-the-wild-west/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{dufrasne2020international, author = {Dufrasne, Gilles}, title = {{International carbon markets at the frontier to the wild west}}, publisher = {Carbon Market Watch}, year = {2020}, month = jan, url = {https://carbonmarketwatch.org/2020/01/20/international-carbon-markets-at-the-frontier-to-the-wild-west/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }