COP26 Establishes Rules for Carbon Markets

Article 6 provides the framework for market-based mechanisms to be utilized to incentivize GHG reduction, mitigation and removal efforts by countries globally

Creating a global compliance market

Article 6’s framework was first envisioned at COP21 in Paris, France in 2015

ITMOs & Klima

Klima’s future may not rest entirely on the voluntary market, however. For context, consider the activities of the Blockchain for Climate Foundation. They’ve consulted with national governments and been active in the carbon market since 2017 to build & share the logic for use of blockchain to enable issuance & exchange of Article 6 ITMOs. They launched the BITMO Platform last week at COP26, which enables national governments to issue Article 6.2 ITMOs as ERC1155 Non-Fungible Tokens (NFTs) on Ethereum. Blockchain for Climate Foundation has convened a National Party Working Group to engage signatories to the Paris Agreement in testing and piloting the BITMO Platform to enable a quick-start to international carbon trading under the Paris Agreement.

How does the VCM deliver climate finance?

In the words of the International Carbon Reduction & Offsetting Alliance (ICROA): The VCM exists to enable non-state actors to take climate action ahead of and beyond regulation. There are countless private companies ramping up efforts to tackle climate change above and beyond what is required of them due to government regulations. The VCM provides an avenue of directing finance by such companies toward high-impact sustainability projects, including greenhouse gas reduction, mitigation and removal projects. This finance is crucial, as one of the biggest challenges in the fight against climate change is simply the cost of action itself. Carbon markets help lower these costs and subsidize innovative projects and thus accelerate emissions reductions.

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KlimaDAO enables mass participation in the carbon markets and governs the development of KLIMA, an algorithmic, carbon-backed currency.

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KlimaDAO

KlimaDAO

KlimaDAO enables mass participation in the carbon markets and governs the development of KLIMA, an algorithmic, carbon-backed currency.