Skip to main content

PNG suspends new carbon deals as it works to create regulations on voluntary carbon schemes

by Sangam Paudel, Apr 27
1 minute read

Papua New Guinea’s environment minister imposed a moratorium on new voluntary carbon credit schemes, as it creates necessary regulatory frameworks and safeguards for these voluntary schemes. This comes after industry watchdog group Carbon Market Watch raised concerns about a 100-year carbon credit deal in the country’s Oro province.

waterfalls in forest during daytime

So what?

The government’s decision is an effort to stop the great harms present in a nascent market involving transactions between actors with significant power imbalances. Papua New Guinea contains some of the world’s largest tracts of rainforests. As the voluntary carbon market grows, there are concerns that middlemen actors – experts, consultants, or brokers – are approaching landowners, taking advantage of their unfamiliarity with carbon schemes, and selling these credits to corporate entities at a high profit, with little being passed on to landowners.

Risks of insufficient checks and balances and regulations in the carbon credit market has already become apparent in other parts of the world. PNG’s decisions signal a greater evaluation of capital flow and the acknowledgement of unequal power dynamics in the growing carbon credit market.

Sources

Details

by Sangam Paudel Spotted 90 signals

Have you spotted a signal of change?

Register to receive the latest from the Futures Centre.
Sign up

  • 0
  • Share

Join discussion

Related signals

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies page.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our 'Cookies page'.

>