COP29 establishes carbon credit trading scheme amid criticism of effectiveness

At COP29, a new carbon credit trading scheme was established, allowing countries to buy credits from others to meet their emissions targets. Critics argue this could enable countries to avoid making significant reductions at home. The deal, part of the Paris Agreement, aims to reduce the costs of national climate plans by up to $250 billion annually. However, concerns about transparency and potential loopholes have been raised, particularly regarding the effectiveness of projects generating carbon credits. Additionally, a separate agreement promises $300 billion annually by 2035 for developing nations to address climate emissions. Critics describe this funding as inadequate compared to global fossil fuel subsidies, highlighting a significant gap in necessary financial support.