Suriname, a small South American nation mostly covered in dense rainforests, is set to make history by becoming the first country to sell carbon credits under the framework established by the 2015 UN Paris Agreement. Reuters has reported the news, citing a reliable insider.
By preserving its vast forest cover, Suriname has managed to store and sequester significant amounts of carbon dioxide, making it an ideal candidate for carbon credit sales.
The Paris Agreement allows nations to market emission reductions in the form of credits called “internationally transferable mitigation outcomes” or ITMOs. Other nations or corporations can buy these credits to help meet their own goals of reducing emissions.
The country’s forest credits are generated based on a baseline it registers with the United Nations, which determines the amount of carbon stock its forests contain. By successfully protecting its forests and allowing the carbon stock to increase, Suriname can package these gains as carbon credits and sell them on the international market.
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According to Kevin Conrad, the head of the Coalition of Rainforest Nations, the initial credits will be supported by Suriname’s emissions reductions in 2021, which were documented through the UN program REDD+, which focuses on reducing deforestation and increasing carbon storage in forests.
This move has sparked a debate among carbon market experts. On the one hand, there are those who argue that selling credits from countries like Suriname could provide much-needed financing to support the transition to a low-carbon economy in developing nations.
On the other hand, however, there are concerns that these credits may not truly reflect authentic efforts to lessen gas emissions.
While credits created within the Paris agreement structure will attract buyers looking for legitimacy, experts point out the risk that those credits may not undergo the same rigorous scrutiny as credits found on independent carbon credit markets.
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