As the world faces interconnected climate and financial crises while striving to advance the Sustainable Development Goals (SDGs), carbon markets are increasingly viewed as key drivers of climate commitments and enhanced capital flows. Carbon markets enable countries to trade carbon credits, which are permits to offset specified amounts of emissions, allowing sellers to generate revenue and participate in climate action.<\/p>\n\n
Least Developed Countries (LDCs) are already participating in carbon markets and are among the early movers in emerging trading mechanisms under Article 6 of the Paris Agreement. The Least Developed Countries Report 2024 examines how these markets can bridge the gap between economic growth and climate action in LDCs and mobilize financing for sustainable development. The report clearly demonstrates that while carbon markets show promise, they cannot replace official development assistance or climate finance, but serve as one of many tools supporting the green structural transformation of LDCs and global emission reduction goals.<\/p>\n\n
Using data-driven analysis and case studies, this report presents a roadmap for LDCs and their development partners to unlock the potential of carbon markets for sustainable growth.<\/p>\n\n