Carbon Trading Needs a Good Rulebook: Three Risks for Sri Lanka to Reduce

Abstract

Increased carbon trading can enhance the flow of climate finance and support mitigation, adaptation, and loss and damage activities. However, at present, the lack of an effective National Framework not only impedes this possibility but also risks uncalculated decision-making that can jeopardise the country’s climate commitments and incur significant social and economic costs. This insight recognises this critical need and unpacks three problems that need to be addressed in formulating an effective framework.