As the price and quality of carbon credits in voluntary carbon markets vary, market participants are increasingly focusing on the reliability of the credits they purchase and whether they generate real environmental benefits, Rza Naghiyev, Director of Investments and Project Development at SOCAR Green, said this during a panel discussion titled “Scaling Climate Finance through Carbon Markets” held as part of Baku Climate Week, APA-Economics reports.
According to him, unlike compliance carbon markets, voluntary carbon markets are less regulated, and therefore differences can arise in the price, quality and reliability of carbon credits.
Naghiyev noted that when acquiring carbon credits, market participants pay particular attention to ensuring that these credits are genuinely high-quality and reliable.
The SOCAR representative emphasized that various international organizations and standards have been established to increase market reliability and develop unified approaches to the quality of carbon credits.
He also said that Article 6 of the Paris Agreement is gradually being integrated into carbon markets.
According to Naghiyev, one of the key issues is preventing the double counting of carbon emission reductions. For this purpose, relevant authorization and “corresponding adjustment” mechanisms are used.
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