Suriname plans to become the first country to sell carbon credits through a system set up by the 2015 U.N. Paris Agreement, in an effort to combat climate change. The move comes as companies are becoming cautious about purchasing carbon credits from private initiatives, after several were found not to deliver on their promises.
The country’s forest carbon credits are generated through monitoring the amount of carbon in their forests and protecting it. Suriname is one of the few “carbon-negative” countries, as its forests absorb more greenhouse gasses than the country produces. The credits are based on emission reductions in the form of “internationally transferable mitigation outcomes” (ITMOs), which can be bought by other countries or companies to use towards their own emission reduction initiatives.
However, this plan has caused division among experts in the carbon market. Some believe it could provide essential finance to developing nations, but others are concerned that the credits might not represent legitimate actions towards limiting global warming. The credits will be backed by Suriname’s 2021 emissions reductions, and approximately 30 companies are said to be studying the possibility of purchasing these credits.
Despite concerns about the robustness of the REDD+ emissions reductions backing the credits, independent U.N. experts, unable to reject national submissions, will review each country’s emission reductions. The U.N. review system resulted from climate negotiations where many countries refuted a system where their submissions could be rejected. Buyers are advised to evaluate Suriname’s credits and seek further information from the government if needed.
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https://www.reuters.com/sustainability/sustainable-finance-reporting/suriname-aims-be-first-sell-paris-agreement-carbon-credits-adviser-2023-09-13/
