UN COP26 climate change targets include emerging technologies and carbon taxes

In her monthly Expert Take column, Selva Ozelli, an international tax lawyer and CPA, introduced the intersection between emerging technologies and sustainability, and provided information on taxation, AML/CFT regulations, and laws affecting encryption and blockchain The latest development of the problem.

2021 United Nations Climate Change Conference (COP26), where I am display My art took place in Glasgow, Scotland, and adopted Glasgow Climate Convention, Bringing nearly 200 countries closer to controlling the global temperature rise in 2100 below 1.5 degrees Celsius.

The meeting still focuses more on emissions reduction rather than the support provided by developed countries to developing countries, because Overview In the UN Energy Mechanism’s summary of the Ministerial Forum, the key recommendations and milestones for achieving the goals were emphasized. Sustainable Development Goal 7 And net zero Emissions. Global Key Elements route map include:

  • Bridging the energy access gap: Provide electricity to 760 million people who lack electricity worldwide. Ensure clean energy cooking solutions for the 2.6 billion people who depend on hazardous fuels.
  • Fast transition to clean energy: By 2030, all coal-fired power plants under construction will be eliminated, and coal-fired power installed capacity will be reduced by 50%. By increasing the annual energy efficiency rate from 0.8% to 3.0%, the energy transition solutions will be rapidly expanded, and renewable energy will reach 8,000 GW by 2030.
  • Leave no one: Through planning and financing, the creation of green energy employment opportunities, and the mainstreaming of energy sector policies and strategies to ensure a just energy transition, equity and equality will be incorporated into energy sector policies.
  • Mobilize sufficient and well-directed funds: By 2030, triple clean energy investment globally to speed up financing. Phase out inefficient subsidies for fossil fuels to support market-based clean energy transitions. Create favorable policies and regulatory frameworks to take advantage of private sector investment in clean energy.
  • Use innovation, technology and data: Through market-oriented policies, unified international standards and carbon pricing mechanisms, we will expand the supply of energy innovations, address key gaps, and increase the demand for clean and sustainable energy technologies and innovations.

The COP26 meeting made history, becoming the first climate summit that explicitly included “gradual reduction of coal” in its decision, and established new rules for the carbon market mechanism, usually referred to as Article 6.A recent research paper estimated By 2030, the establishment of a global carbon market will save the world approximately US$300 billion annually.

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Article 6 The Paris Agreement, which covers international cooperation (including the carbon market), has established new carbon credit trading rules. These carbon credits represent one metric ton of carbon that has been reduced or removed from the atmosphere. The new rules create an accounting system designed to prevent double counting of emissions. It consists of two parts: a central system open to the public and private sectors, and a separate bilateral system that allows countries to trade credits. They can be used to help. Their decarbonization goals.

related: The Climate Chain Alliance advocates the creation of a green economy at COP26

Joseph Pallant, Director of Climate Innovation at Ecotrust Canada, Founder and Executive Director of the Blockchain Climate Foundation, explained to me:

“Emission reduction results are the most important asset in the world, and will soon become the most valuable asset.”

He continued: “The BITMO platform built on Ethereum can realize cross-border emission reduction cooperation and distribute the benefits of clean energy, natural climate solutions and better infrastructure to all corners of the world.”

The BITMO platform is a project of the Blockchain Climate Foundation. It was created to advance Article 6 of the Paris Agreement and use blockchain technology to promote a more effective and efficient global carbon market. It allows the issuance and exchange of “Blockchain International Transfer Mitigation Results” (BITMO) as ERC-1155 non-fungible tokens (NFT) on the Ethereum blockchain. Each token represents one metric ton of carbon dioxide, and related carbon credit data is embedded in the NFT.

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Article 6 aims to link global emission reduction opportunities with required capital and demand. In order for the global carbon market to reflect the true emission reductions, the accounting infrastructure needs to ensure completeness, cooperation and avoid double counting of emission reductions. The BITMO platform serves as a safety record for the release, transfer and decommissioning of the international transfer mitigation results of each country. These results can be combined or coordinated with the national carbon registration and future United Nations Framework Convention on Climate Change requirements. BITMO helps achieve global climate goals by making any relevant data easy to view, available to the public, and settled immediately upon exchange, thereby avoiding double counting of emission reductions.

Carbon tax

At the COP26 meeting in Glasgow, another major issue discussed by world leaders included the implementation of a carbon tax. Transfer According to the World Bank, the consequences of climate change are responsible for polluters. Currently, 69 countries impose carbon taxes, ranging from US$1 to US$139 per metric ton.

related: The need to report carbon emissions during the coronavirus pandemic

The administration of U.S. President Joe Biden (Joe Biden) has outlined a $555.0 billion expenditure on climate change as part of the “Rebuild Better Act”, which includes a suggested Methane bills designed to incentivize oil and gas companies to reduce methane emissions.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Selva Ozeli, Esq., CPA, is an international tax lawyer and certified public accountant. He often writes articles on tax, legal and accounting issues for tax notes, Bloomberg BNA, other publications and the OECD.