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.
More Information:
For the latest updates on carbon markets click here. For further information on the dangers of carbon markets please see:
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