How Emerging Markets Will Benefit From New Carbon Trading Rules

Amid pledges to phase out the use of coal and reduce methane emissions, world leaders at the recent UN Climate Change Conference (COP26) in Glasgow also agreed to reform global carbon markets and improve rules about carbon trading, seen as key tools in the transition towards decarbonisation. Carbon trading is a system whereby a government sets a limit on the amount of carbon that can be emitted, and then divides this amount into units.

These units are allocated to different groups, industries and businesses, and can then be traded like any commodity.…