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Global Carbon Market

(Photo by American Public Power Association on Unsplash)
(Photo by American Public Power Association on Unsplash)

For the German Government, carbon markets are an important instrument for use in international climate protection. Trading of mitigation certificates allows mitigation activities to take place first in places where they are least expensive. This makes mitigation activities less costly, with the result that effective carbon markets can contribute to countries setting more ambitious climate targets and the private sector making more climate-friendly investments.

Market mechanisms also feature in the Paris Agreement: Article 6 of the Agreement introduces so-called cooperative approaches. Besides Article 6.8, which caters for non-market approaches, its Articles 6.2 and 6.4 provide for market-based mechanisms. These will replace the Clean Development Mechanism and the Joint Implementation mechanism that have existed under the Kyoto Protocol, but will differ from these in some important respects.

Against this backdrop, the German Environment Ministry (BMU) has commissioned the project “Global Carbon Market” which is implemented by the German Development Agency (GIZ). The project aims at supporting private and public stakeholders in partner countries to help them use market mechanisms effectively to enhance their climate action. Partner countries include India, Uganda (with outreach to other East African countries), Chile and Tunisia.

The Global Carbon Market project assists partner governments in developing new market instruments for climate change mitigation and in exploiting the opportunities that are likely to arise from Article 6 of the Paris Agreement. The project partners receive support by means of tailor-made capacity development and innovative exchange and networking formats. Furthermore, the project helps stakeholders from the private sector to participate in market-based approaches to tackle climate change and to set an internal price on carbon. In addition, the project supports the BMU in the UNFCCC negotiations on Article 6 and in its international outreach activities concerning carbon pricing and market-based mechanisms.

Uganda

The Global Carbon Market project supports the development and implementation of carbon market instruments in Uganda as well as in the wider East African region. It sensitizes policy makers to carbon market mechanisms and provides training for delegates from the African Group who negotiate within the UNFCCC. More

India

The Global Carbon Market project provides support to the climate change department of the Indian Environment Ministry concerning market mechanisms and other forms of cooperation under the Paris Agreement, as well as on climate finance. More

Tunisia

The cement industry contributes a big share of Tunisia’s total greenhouse gas emissions. Therefore, a major focus of the Global Carbon Market project in Tunisia is the cement sector. More

Chile

Recently, Chile initiated work on a Climate Change Law. The Global Carbon Market project team is accompanying the design process of the new Climate Change Law. More

Global Carbon Market

Implementation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Other organisations involved: Regional Center for Renewable Energy and Energy Efficiency, Tunisia; Ministry of Water and Environment (MWE) - Department of Climate Change, Uganda; Ministry of Environment, Forest and Climate Change (MoEFCC), India; Ministry of Energy, Chil

Lifecycle: 2008–2018

Contact: Enrico Rubertus enrico.rubertus@giz.de