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Mark Carney Taskforce Aims to Transform Carbon Trading into a Commodity Market

Former Bank of England governor Mark Carney's Taskforce is proposing a market-based solution to combat global warming by turning carbon into a commodity. The idea is to create a trading system that connects polluting companies with carbon elimination and capture projects, allowing capital to flow from emitters to fixers.

Carney aims to launch a pilot program for this concept before the COP26 climate summit in November. However, disagreements have arisen within the Taskforce regarding key execution aspects. These include defining which companies can use offsets to achieve their climate goals, obtaining endorsement from climate players, establishing governance for the global voluntary market, and determining whether "avoided emissions" should be included in net-zero plans.

To establish a recognized standard, there are calls for the introduction of a "core carbon principle" label, similar to organic labels for groceries. Carney believes that the carbon offset market could be worth $100 billion by 2030, a significant increase from the $300 million value in 2018. If the 18 oil majors with net-zero goals were to offset their 3.3 billion tonnes of emissions, it would require approximately 18 times the offset volumes seen in 2020.

The Taskforce's proposal seeks to create a market mechanism that encourages carbon reduction and incentivizes investment in projects that can capture and eliminate emissions. By transforming carbon trading into a commodity market, it aims to drive the transition towards a low-carbon economy and contribute to global efforts to mitigate climate change.


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