Negotiators closed a deal setting rules for carbon markets at the United Nations COP26 climate talks on Saturday, potentially unlocking trillions of dollars for protecting forests, building renewable energy facilities and other projects to combat climate change.
The final deal adopted by nearly 200 countries will implement Article 6 of the 2015 Paris Agreement, allowing countries to partially meet their climate targets by buying offset credits representing emission cuts by others.
Companies, as well as countries with vast forest cover, had pushed for a robust deal on government-led carbon markets in Glasgow, in the hope of also legitimising the fast-growing global voluntary offset markets.
Critics worry that offsetting could go too far in allowing countries to continue emitting climate-warming gases, making some wary of a hasty deal.
The deal was "a Brazilian victory" and the country is gearing up to become a "big exporter" of carbon credits, its environment ministry said on social media. The country is home to much of the Amazon forest, and has huge potential to build wind and solar plants.