Why Carbon Markets?
Carbon markets were introduced to entice the U.S. to join the Kyoto Protocol.
They were to designed to give Annex I (industrialised countries) ‘flexiblity’ in meeting their emission reduction targets.
The idea is to allow developed countries to save money by buying ‘emission reduction credits ‘ from developing countries rather than cutting their own emissions.
Problems with Carbon Markets
- Carbon markets do not reduce emissions, they merely shift the burden of doing so to developing countries.
- It is estimated that from 20-65% of Kyoto’s market based mechanism projects, the Clean Development Mechanism (CDM), no actual reductions occurred.
- It cannot be proven that a proposed project will reduce emissions, to do so requires a proof of ‘additionality’ (i.e. it would not have happened without carbon finance) – yest this is impossible to know.
Civil society groups are calling for the end of carbon markets in international negotiations and a return to focus on real emission reductions in developed countries.
Key Demands Include:
- Current unsuccessful market mechanisms must be stopped under the Kyoto Protocol.
- Market mechanisms cannot be ‘migrated’ from the Kyoto Protcol to other international agreements.
- REDD should be fund-based rather than market based.
- A climate fund with flows for mitigation and adaptation should be adopted.
- Public investments, the removal of fossil fuel subsidies, regulation and a global fund are proven solutions.
- Payal Parekh – Climate and Energy Blog