The annual report titled "Markets Matter," published by the International Emissions Trading Association (IETA), emphasizes the significance of markets in addressing climate change and achieving the goals of the Paris Agreement. The report features contributions from various experts and organizations, including the UNFCCC Executive Secretary, the World Bank, and the International Air Transport Association.
The report delves into the market architecture for the Paris Agreement, discussing the need for market elements and their facilitation in the climate agreement. It explores market-related issues such as financing for forest protection, innovative thinking on adaptation, and the role of the private sector in mobilizing innovation and finance for climate action.
According to Christiana Figueres, Executive Secretary of the UNFCCC, markets are essential in combating climate change and transitioning to a low-carbon global economy. The private sector plays a crucial role, and market approaches are gaining rapid momentum worldwide.
Dirk Forrister, President, and CEO of IETA, highlights the significant impact that market approaches can have in the global fight against climate change. The report showcases best practices in monitoring, reporting, and verification, as well as innovative financing solutions for adaptation and forest protection.
The report also acknowledges the need for market mechanisms in addressing adaptation, an area that currently lacks a market. Ken Newcombe of CQuest Capital suggests that sequestration credits from landscape carbon projects can serve as a credible proxy for adaptation outcomes, making adaptation tradable within such projects.
The full report, supported by AEP, AitherCO2, EcoWay, and EEX, is available online and can be accessed through the IETA app, providing essential information for the UN climate negotiations in Peru.
