UNDP And Partners Launch Open-Source Software For Carbon Credits Trading

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UNDP And Partners Launch Open-Source Software For Carbon Credits Trading

Recently the United Nations Development Program (UNDP) has launched software called ‘National Carbon Registry’.

This software will enable countries to effectively manage national data and processes for trading carbon credits.

Key Points:

  • Software called the National Carbon Registry has recently been recognized as a Digital Public Goods (DPG).
  • As a DPG, the registry uses open source code, allowing countries to replicate and adapt the information to suit their needs and contexts.
  • The registry’s modules, software, and technical documentation can be reused and tailored by countries, potentially reducing production costs and implementation timelines.
  • Also, it can be integrated with national measurement, reporting and verification (MRV) mechanisms to meet international reporting requirements. This registry will promote the development of the carbon market by facilitating trading of carbon credits.
  • Article 6 of the Paris Agreement allows countries to voluntarily cooperate with each other to achieve emissions reduction targets set in their Nationally Determined Contributions (NDCs).
  • Carbon markets establish trading systems where carbon credits or allowances are bought and sold. Companies or individuals can use carbon markets to offset their greenhouse gas emissions. They can do this by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
  • A carbon credit is a type of tradable permit. This is equivalent to one tonne of carbon dioxide or any other greenhouse gas removed, reduced or stored from the atmosphere. Carbon trading was introduced in 1997 by the Kyoto Protocol.
  • The Ministry of Power in India has notified the Carbon Credit Trading Scheme (CCTS), 2023. It aims at the institutionalization and functioning of the Indian Carbon Market (ICM).

Source – UNDP

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