Last year ended with disappointment at COP29 in Baku, Azerbaijan. Critical issues such as climate finance and support for developing nations went largely unresolved, leaving many frustrated. The absence of key leaders and the US election of Donald Trump signalled potential setbacks for global environmental efforts. Furthermore, major asset managers like BlackRock and JPMorgan have rolled back some of their climate commitments.
However, there was progress with the formalisation of cross-border rules for carbon credit trading. This new framework, overseen by the UN, promises to raise significant capital for emission-reduction projects, potentially offsetting five billion tons of emissions annually, and open a market worth $250bn a year by 2030.
The grim reality is that global warming is here to stay and limiting it to 1.5°C is no more possible. While discouraging, this should be a call to action rather than despair.
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