The German Federal Government sees the global carbon market as a key instrument in international climate change mitigation. Emissions trading makes it possible to conduct mitigation activities where they are least expensive. This makes them more cost-effective, enabling carbon market to be used to help countries set ambitious emission reduction targets and the private sector to make more climate-friendly investments. Wanting to promote a global carbon market and support carbon pricing initiatives in countries around the world, the Federal Environment Ministry (BMU) commissioned Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to conduct the Global Carbon Market project on its behalf.
The Global Carbon Market project assists public sector decision-makers around the world in implementing and using market-based instruments in their national climate action projects and plans (nationally determined contributions (NDCs), long-term strategies, climate change policies and legislation). With studies, capacity-building activities and pilot programmes, the project also supports the strategic development of new instruments for cooperative approaches under Article 6 of the Paris Agreement. It likewise promotes private sector involvement in the development and implementation of market-based solutions and advises both public authorities and private enterprise on the potential benefits of market-based instruments to mitigate climate change. Other project components include the provision of training to prepare government representatives in the partner countries for the climate change negotiations and providing support for regional cooperation in the carbon market. Countries involved in the project involve Uganda along with partner countries in East Africa, India, Tunisia and Chile. Since early 2021, the project has been expanding its work into the Caribbean. At the country level, the project is exploring collaboration with Grenada and St. Lucia, complemented by regional activities.
In the partner countries India, Tunisia, Chile and Uganda, a large number of stakeholders in the public and private sectors have received training. The training focuses primarily on the new market mechanisms and the use of climate finance instruments. Specially-developed training on carbon pricing was also developed as part of the project. As a result, awareness to the potential for market-based instruments in climate change mitigation has been strengthened and possible options for their use at national level have been identified. With measures in the partner countries and the development of studies and analyses, the Global Carbon Market project makes a valuable contribution in promoting market-based instruments at national and international level. For example, the project team provided intensive support in designing the new climate change law and also contributed to the fact that carbon pricing instruments play a central role in Chile’s climate action plan. The analyses and studies published as part of the project help drive the debate on the future of the carbon market. The publications are available here. Below you can find more in-depth information on the country-specific activities of the Global Carbon Market project.
To date, Africa and especially Africa’s least developed countries (LDCs) have seen only marginal representation in the global carbon market. more
Despite the hurdles still being faced in implementing activities to mitigate climate change, climate action in India has gained momentum in recent years. more
As the only Arab country with a parliamentary democracy and a modern constitution, Tunisia is an important partner country for the German government – including in efforts to mitigate climate change. more
In Chile, the Global Carbon Market project provides support to the Chilean government in developing carbon pricing instruments and in exploring carbon finance mechanisms for use in climate action projects. more
Countries: Chile, India, Tunisia, Uganda
Role of BMWK: Co-financed by BMWK
Lifecycle: 2018 - 2022
Implementation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Other Organisations Involved: Uganda: Climate Change Department of the Uganda Ministry of Water and Environment, India: Ministry of Environment, Forests and Climate Change, Chile: Ministerio de Energia, Tunisia: L‘Agence Nationale pour la Maîtrise de l’Energie
Contact: Sven Egbers, email@example.com