Prospects for Creating BRICS Carbon Trading Market

Abstract

The development of carbon emissions trading allows to fulfill climate commitments not only for companies (under carbon taxation), but also for governments to achieve climate goals under the UN Framework Convention on Climate Change. The article considers approaches of the BRICS countries to the emission of carbon offsets, including barriers that affect cross-border trade - different approaches to the validation of climate projects and verification of carbon offsets. The authors propose options for aligning the rules of issuing and trading carbon offsets in the BRICS carbon market, including mechanisms for mutual recognition of carbon offsets, which would help attract investors to the carbon market and more effectively achieve national emission reduction targets.