LONDON, 20 November – IETA’s GHG Market Report 2014, released today, showcases the role markets can play in delivering climate finance, clean technology and emissions cuts.
Entitled Markets Matter, this year’s report is structured around these three themes. The report opens with an overview by UNFCCC Executive Secretary Christiana Figueres. It then considers market architecture for the Paris Agreement in an article by Professor Robert Stavins and a team led by the Harvard Project on Climate Agreements, before IETA’s International Working Group chairman David Hone sets out the need for markets in the 2015 climate agreement and how market elements could be facilitated.
The Report focuses on a range of market-related issues, with articles from the secretariat of the Green Climate Fund, carbon market pioneer Ken Newcombe of CQuest Capital, Québec’s Ministry of Sustainable Development, Environment and Climate Change, the World Bank and the International Air Transport Association, among others.
“The world needs to invest in both the challenge but also the opportunities arising from combatting climate change and moving to a low-carbon, far less polluting global economy – that means that the private sector matters and markets matter,” says Figueres. “This is clear in the papers and submissions that countries are bringing to the negotiating table, and it’s clear in what’s happening on the ground, with the rapid growth in market approaches in economies and constituencies around the world.”
“With the Paris climate agreement getting closer, many business organisations are starting to think about what it might mean for them,” says Hone, who is also Chief Climate Change Adviser at Shell. “By contrast, IETA is taking positive steps to input real content to the Parties, ensuring that IETA members know what the agreement will mean for them.”
IETA’s President and CEO Dirk Forrister says: “To IETA and its members, markets really do matter. They can really make a difference in the global fight against climate change. The use of market approaches is a way of bringing the private sector into that battle and mobilising all that the business sector can offer, both in terms of innovation and finance.
“Markets Matter also showcases some of the best practice solutions to crucial issues such as monitoring, reporting and verification, as well as innovative thinking on financing for forest protection and adaptation – all of which are important elements of a future climate agreement,” adds Forrister.
“Adaptation so far lacks a market as it seems amorphous and unquantifiable,” says CQuest Capital’s Newcombe. “Yet we have the tools and the knowledge to make sequestration credits from landscape carbon projects a credible proxy for adaptation outcomes, making adaptation tradable in such projects.”
The full report, published with support from AEP, AitherCO2, EcoWay and EEX, and executive summary are available online now at www.ieta.org/ghgmarket2014. It is also accessible via the new IETA app, available for Android and iPhone, which contains all the essential information – and more – for the UN climate negotiations in Peru.