Project developers in poor countries are struggling to attract finance, as deadlock on international carbon trading rules cannot be resolved before November 2021 A woman in Bangladesh usi bio gas for cooking. Projects developed through carbon markets include rolling out efficient coockstoves to reduce the use of biomass which generates smoke and greenhouse gas emissions. (Photo: Vidura Jang Bahadur/UN Women Asia and the Pacific/Flickr) Projects to curb greenhouse emissions in developing countries are in limbo amid another delay for nations to design a new global carbon market. Carbon markets allow countries and companies to buy credits to meet their climate goals by investing in carbon-cutting projects elsewhere. But in recent years, countries have been unable to agree the rules for new international carbon trading system under the Paris Agreement. The postponement of the next UN climate summit, Cop26, to November 2021 because of coronavirus is dragging out the uncertainty for investors and project managers about the future of carbon credits. “It’s a burning issue for us,” said Sandeep Roy Choudhury, the co-founder and director of VNV Advisory, an Indian social enterprise which develops climate-related projects in South and South-East Asian communities, supporting the work of more than 50 NGOs in the region. Choudhury has been using carbon markets to raise private finance and support projects such as restoring forests and mangroves, establishing sustainable agricultural practices, developing rural energy access and rolling out clean cooking facilities. But the lack of clarity on the new rules has made investors increasingly reluctant to back projects, which often have a lifespan of five to 10 years, he told Climate Home News. As a result, his company has put developing new projects on hold for the time being. While VNV Advisory has so far been able to support its established projects, “smaller project developers... |