New market mechanism initiatives, such as enhanced project-based mechanisms, sector-based crediting mechanisms or various emission trading schemes could help in removing existing bottlenecks on international carbon markets, shows an analysis made by a consortium led by Gaia.
In particular, the now published survey provides an analysis of the reform process of Kyoto mechanisms, the implications of recent restrictions on the use of industrial gas Certified Emission Reductions (CERs) within the European Union Emission Trading Scheme (ETS), and the development of new carbon market mechanisms. The report provides a set of conclusions concerning the on-going initiatives and identifies a series of key aspects to take into consideration in removing existing bottlenecks and in the development of new market mechanisms.
“While there is a strong consensus of the fact that existing market mechanisms are not sufficient to catalyze the required global emissions reductions, as clearly indicated by climate science and acknowledged in the Cancun COP 16 agreement, mechanisms such as the Clean Development Mechanism (CDM) have generated significant investment in green energy in developing countries. Now, a myriad of new initiatives are seeing daylight. For example sector based Nationally Appropriate Mitigation Actions (NAMAs) will require the development of policies, cross-sectoral collaboration and coordination between a much broader group of stakeholders, including the private sector” concludes Mikko Halonen, one of the authors of the study.
The study was prepared at the request from the Ministry of Environment of Finland and conducted in collaboration with First Climate AG, a leading carbon asset management company, and Condes Oy, with world class expertise in climate and development financing. Gaia offers an array of climate change services ranging from profound market analysis to corporate climate change strategies and practical Carbon Management Plans.
Report “Päästöyksiköiden markkinoiden kehityssuuntia” (in Finnish)
For further information:
- Pasi Rinne, Chairman of the Board, Gaia, tel. +41 79 472 6909, firstname.lastname@gaia.fi
