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The Next Level: How a reformed carbon market can contribute to fighting climate change

Carbon Mechanisms Review 2-2014

Arbeiter auf Rohranlage
(Photo: Sasol/mediaclubsouthafrica.com)

May 2014 - With one and half years to go to agree on a future climate change architecture, a heavy workload is in front of the negotiators. The prospects for an ambitious international climate policy to ensure that the world stays below the agreed 2° C target are bleak. In this atmosphere, many do not see a role for the Carbon Markets. Yet market mechanisms have the power to make meaningful contributions to climate change mitigation; if carefully designed, they can even contribute to raising ambition, as our authors argue.

This issue also reports on Standardised Baselines, which many see as a bridge between the current Carbon Market mechanisms and future instruments such as NAMAs or New Market Mechanisms. Finally, we take stock of the activities of the Partnership for Market Readiness (PMR), which was launched four years ago. This ‘only game in town’ on further developing future market mechanisms, as it was dubbed by Christiana Figueres, is currently changing gear, i.e. some of the proposals are changing from the concept stage into the pilot phase.

The PMR is currently considering setting up a fund which would buy certificates from these early pilots. In doing so it gives a decisive kick that will contribute to developing the bright future of the Carbon Markets we all hope for.