MARC(U) MY WORD: Key issues in EU ETS review
Observers and stakeholders generally agree that the revision to the EU ETS needs to ensure that the transition results in a prosperous and decarbonised, but not deindustrialised Europe.
Read MoreCOMMENT: A Brave New (Article 6) World
Last week’s UN agreement on Article 6 is bullish for the role of market-based mechanisms in supporting global climate action. But the new dawn comes with added complexities, write Sebastien Cross and Tommy Ricketts of BeZero Carbon.
Read MoreECOSYSTEM MARKETPLACE – Shades of REDD+: Managing expectations for Glasgow
Glasgow is likely to produce a decision on the implementation modalities for market mechanisms under the Paris Agreement. However, those expecting that such a decision would lead to a flurry of investments into Article 6 transactions may see their hopes frustrated by governments’ and corporates’ lack of appetite for such transactions. But closing the Paris Rulebook will still be important, if only to put voluntary carbon markets on stable ground.
Read MoreECOSYSTEM MARKETPLACE – Shades of REDD+: Filling an Urgent Need – New Guidance for ‘Nested REDD+’ Published
Over the last months, several companies have announced an aggregate of more than two billion dollars of investments – in particular trading houses or major emitters – in voluntary carbon market projects that champion nature-based solutions. At the same time, the LEAF coalition is encouraging the development of jurisdictional REDD+. For such initiatives to peacefully coexist, there is an urgent need for countries to build “nested” REDD+ systems.
Read MoreCOMMENT: Climate impact claims to crowd in private sector finance
There is growing interest in uses of the carbon market that do not rely on unique claims, and expanding the use of the voluntary carbon market to accommodate new claims can crowd in even more investment without being limited to a narrowing pool of options available for offsetting, writes Sarah Leugers of Gold Standard.
Read MoreCOMMENT: Voluntary carbon markets – broken more than breakthrough
The voluntary carbon market is supposed to be saving the world. Instead many carbon credit retailers are lining their pockets, warns market veteran and Redshaw Advisors founder Louis Redshaw.
Read MoreECOSYSTEM MARKETPLACE – Shades of REDD+: Corresponding Adjustments, Equity, and Climate Justice
The increasing commoditization of carbon markets makes us forget that behind these board room discussions, there is a real-world problem out there with the plight of real people at stake. While being an invention of the global north, carbon markets came with a great promise for us here in the South. The idea of backing voluntary claims with corresponding adjustments puts this promise at grave risk, writes Sandeep Roy Choudhury – Co-Founder of VNV Advisory Services, Co-Chair of the International Carbon Reduction and Offset Alliance (ICROA), and Director at the Carbon Initiative Forum.
Read MoreCOMMENT: Offsetting 2.0 – how ratings can help avoid a race to the bottom
In order to avoid fungibility becoming a race to the bottom, the voluntary carbon market needs tools that recognise the variation in carbon returns and enables the creation of products that capture this variation, according to Sebastien Cross of BeZero Carbon.
Read MoreCOMMENT: Let’s remove ONLY what we can’t avoid
While carbon removals will play a role in mitigating climate change, we cannot afford to take our focus away from the urgent objective of avoiding emitting in the first place, write Sarah Leugers and Owen Hewlett of Gold Standard.
Read MoreCOMMENT: Financing carbon dioxide removals – what role for ETS in the race to net zero?
Carbon pricing and specifically emissions trading systems can play an important role in incentivising removals necessary for achieving Paris Agreement emissions targets, according to the ICAP Secretariat.
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