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Carbon market has been a major contentious issue at Madrid climate talks, dividing the developed and developing world. What is the concept? Why was it felt necessary? And what are the major points of disagreement? Analyse.

Topic: Conservation, environmental pollution and degradation, environmental impact assessment.

5. Carbon market has been a major contentious issue at Madrid climate talks, dividing the developed and developing world. What is the concept? Why was it felt necessary? And what are the major points of disagreement? Analyse. (250 words)

Indian Express

Why this question:

Almost halfway through the climate conference in Madrid, one big thing it had to resolve was the disagreements over setting up a new carbon market that has remained contentious as ever. Thus the question aims to analyse the concept of carbon market in such pretext.

Key demand of the question:

One must provide for a detailed analysis of carbon markets and examine the mechanism in detail along with the associated pros and cons.

Directive:

Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

In first, explain the context of the question.

Body:

Carbon markets, which allow for buying and selling of carbon emissions with the objective of reducing global emissions, is an unfinished agenda from last year’s meeting in Katowice, Poland.

Under the Paris Agreement, every country has to take action to fight climate change. These actions need not necessarily be in the form of reduction in greenhouse gas emissions, which can constrain economic growth.

Explain then – what the points of contention are; the main tussle is over two or three broad issues — what happens to carbon credits earned in the Kyoto regime but not yet sold, what constitutes double-counting, and transparency mechanisms to be put in place.

Discuss the major points of disagreements.

Suggest way forward.

Conclusion:

Conclude that Carbon markets are not compulsorily essential to the implementation of Paris Agreement. But with the world doing far less than what is required to prevent catastrophic impacts of climate change; the markets can be an important tool to close the action gap

CategoriesINSIGHTS