Question
What measures are the International Organization of
Securities Commissions (IOSCO) proposing to enhance voluntary carbon markets (VCMs), and why is this initiative significant?Solution
IOSCO is proposing 21 safety measures to improve the integrity, transparency, and enforcement in voluntary carbon markets (VCMs). This initiative is significant because it aims to address concerns about the quality and potential double counting of carbon credits, reducing the risks of fraud in these markets. The proposed measures include standardizing terminology in VCMs, which is crucial for ensuring clarity and consistency in the trading of carbon credits.
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