Carbon Markets and Article 6 hot topics at the Climate Change Conference
At COP24 in Poland the business community, and others, eagerly awaited greater clarity on the provisions of Article 6 and on the adoption of new cooperative approaches able to promote new regulation for international carbon markets.
The lack of an agreement in Katowice was a disappointment. The certainty of rules, which is still absent, is fundamental to allow the private sector to accelerate the transition to a zero-emission economy by the second half of the century.
Delegates from over 190 countries will meet in Bonn this week, precisely to continue negotiations on the implementation of Article 6 of the Paris Agreement. The Climate Change Conference 2019 will host a wide range of events, meetings and negotiation sessions that will prepare the ground to raise the ambition to reduce greenhouse gas emissions, accelerate resilience efforts and ensure that climate policy is based on foundations solid and scientific.
Article 6 for greater climate ambition
"We believe that the ability of the business community to achieve ambitious goals with large-scale investments depends on clear and precise rules on market mechanisms," said Dirk Forrister, President and CEO of IETA. "With clarity on Article 6, they can invest with confidence in the vast opportunities for reduction and removal that are widespread throughout the world."
Forrister added: "We need clear indications on how to take account of emission reduction transfers, on the type of projects that can generate reductions and on the measurement and verification standards. Without this orientation, the private sector will not have the clarity it needs to deploy billions - even billions of dollars in capital expenditures that are needed ".
Building a clear and transparent framework for the implementation of Article 6 of the Paris Agreement is essential to provide strong and consistent signals to shift investment towards low-carbon solutions.
The crucial role of the Carbon Markets
The international carbon markets, those that are able to attribute a price to carbon, are absolutely crucial if we are to have any chance of stabilizing the global temperature increase and avoiding the catastrophic consequences of climate change.
Also declared by the United Nations Executive Secretary for Climate Change, Patricia Espinosa, during her speech at the Conference organized by the European Commission dedicated to the Carbon Markets.
A fragmented market - one with different rules and regulations - is less transparent and has a higher risk that the mitigation results will be less ambitious and of low quality. Instead, we should look for a transparent, consistent and high quality approach around the world.
There is an imminent need for well-designed and well-connected markets, markets that are able to support cooperation, with consistent rules supported by environmental integrity and in line with sustainable development objectives. Carbon Markets that provide an ambitious signal to all parts of society and support the profound and transformative change we urgently need.
"In the end, we are all working towards the same goal: stabilizing the global temperature increase to 1.5 degrees. If we fail to achieve that goal collectively, we suffer collectively" concluded Patricia Espinosa.