Maldives prepares first draft of regulation to enter international carbon market

Environment Minister Ali Shareef has announced that the first draft of a regulation to enable the Maldives to enter the international carbon market has been prepared. Speaking on the 'Raajje Miyadhu' programme on state media PSM, the minister said work on the regulation was underway, with the aim of gazetting it before the end of the year. 'A first draft has been prepared and is now being reviewed,' the minister said. 'My aim is to see, God willing, whether it can be gazetted by the end of this year.' A carbon market is a system in which carbon credits are traded. Credits are earned through activities such as shifting to renewable energy and planting trees. Such markets come in two forms: compliance markets, established by governments through laws and regulations, and voluntary markets, which are domestic or international markets where companies, individuals and governments pursue specific targets. Among the world's largest carbon markets are the European Union's Emissions Trading System (EU ETS) and China's national emissions trading system. Minister Shareef said the regulation would include details on approving carbon projects, the administrative responsibilities of both parties, and how carbon credits would be held. The Maldives has previously worked to enter the carbon market, he added. At the COP28 summit on 1 December 2023, President Dr Mohamed Muizzu announced that the government aims to generate 33 per cent of the country's electricity from renewable energy by the end of its five-year term. He said US$600 million would be needed and that international support would be required to achieve the target.