Experts call for higher carbon credit pricing as global carbon trading takes shape

A new report from the World Economic Forum argues that carbon credit prices are too low to meet Paris Agreement goals. Almost a quarter of global energy emissions are now covered by some form of carbon pricing, but only about one percent of total emissions are priced high enough to hit the 1.5C target. The article notes that COP29 agreed to kick-start global carbon credit trading, but without higher prices the system will not drive real reductions. Kenya lacks specific regulations for carbon trading, which adds uncertainty for project developers and buyers. The piece explains the basic mechanics of carbon credits where one credit equals one ton of CO2 equivalent reduced. For carbon markets to work as a climate solution, coverage needs to expand and prices need to rise significantly. The article is worth reading for anyone tracking how carbon pricing is evolving after COP29 and what it means for African carbon projects.