Los Angeles, United States  -  Governments could finally approve new UN standards for countries and companies wanting to trade carbon credits, a long-awaited decision some hope can bring credibility to a scandal-ridden sector. Carbon credits are generated by activities that reduce emissions, like tree planting or replacing polluting coal with renewable energy, but buyers have long relied on unregulated markets shaken by high-profile scandals.

At this month’s COP29 climate summit in Azerbaijan, the UN hopes to approve rules and a verification system years in the making to provide some certainty for governments and businesses exchanging carbon credits.

In carbon markets, one credit equals a tonne of carbon dioxide prevented from entering, or removed from, the atmosphere.

The UN’s proposed standards mostly relate to countries -- mainly wealthy polluters -- seeking to offset their emissions by purchasing credits from nations that have cut greenhouse gases above what they promised.

Climate negotiators have been mulling the idea since the 2015 Paris Agreement.

Observers say the November 11-22 UN talks could see a breakthrough, with a supervisory body expected to put fresh proposals for verifying carbon credits on the table.