Monday, 18 November 2024.
International carbon markets represent a significant climate action financing opportunity for countries.
On the supply side, for those more developed with technological solutions, while those in developing stage commonly have the so-called Nature-based Solutions. On the demand side, some countries, but especially the private sector.
But how to properly relate Emission trading systems (ETS), Article 6, Internationally Transferred Mitigation Outcomes (ITMOs), regulated and voluntary carbon credit markets, jurisdictional credits, CORSIA, integrity issues, the role of the private sector and the relationship between all of this with Nationally Determined Contributions (NDCs)?
A real puzzle.
According to a briefing released on November 8, the World Bank (WB), the United Nations Development Program (UNDP), the Article 6 Implementation Partnership (A6IP), the Integrity Council for the Voluntary Carbon Market (ICVCM), the Voluntary Carbon Markets Integrity Initiative (VCMI) and the Global Green Growth Institute (GGGI) started to coordinate their efforts - which until now had been isolated - aiming to technically help countries in structuring, implementing and leading in high-integrity carbon markets.
Better late than never, this is the beginning of a welcome union, considering not only the fragmentation of efforts around the world but the complexity of local factors and international carbon markets.
The idea is that this technical support provides a coherent framework for countries, allowing them to maximize their potential in the carbon market towards their climate commitments and objectives.
The joint briefing brings three graphic schemes that summarize these factors, their interrelationship and complexity.
Click on the image below - one of the schemes mentioned above - to read the 4-page briefing. And here for the press release.
Regarding the 6 organizations, we have selected links below to articles that show their respective action fronts, so that you can evaluate and remember these roles, true foundations of a high-integrity carbon market:
World Bank (WB), pricing, global trends and legal nature;
United Nations Development Program (UNDP), markets development;
Article 6 Implementation Partnership (A6IP), capacity building;
Integrity Council for the Voluntary Carbon Market (ICVCM) and Voluntary Carbon Markets Integrity Initiative (VCMI), integrity issues;
Global Green Growth Institute (GGGI), enabler and facilitator.
Important note. Accounting issues relating to environmental credit liabilities, “noncompliance credits” and their fair value measurement have not yet been broadly pacified. Remember the article we deal with efforts by the Financial Accounting Standards Board (FASB) in the United States.
