How will emerging markets benefit from new carbon trading rules?

Amid pledges to phase out the use of coal and reduce methane emissions, world leaders at the recent UN Climate Change Conference (COP26) in Glasgow also agreed to reform global carbon markets and improve rules about carbon trading, seen as key tools in the transition towards decarbonisation.

– Emerging markets will benefit from an increase in renewables investment

– COP26 saw key agreements made on carbon emissions trading

– Critics say that carbon trading could give rise to greenwashing

Carbon trading is a system whereby a government sets a limit on the amount of carbon that can be emitted, and then divides this amount into units. These units are allocated to different groups, industries and businesses, and can then be traded like any commodity.

Proponents say that carbon trading will ultimately increase investment in environmentally friendly solutions, as the price placed on…