Carbon Markets: All Cards on the Table

The new draft text still features brackets around the sustainable development mechanism provision. Decisions to be made in the next 24 hours include whether offsetting will be allowed (please, NO!), whether developed countries will be able to play the offset generation game, accounting rules, guiding principles and a share of proceeds for climate finance purposes.

ECO suggests:

  • Disallowing the use of offsetting. To achieve the 1.5C goal, we need to focus on emissions reductions
  • Enhancing inclusion of ’environmental integrity‘. by inclusion of the additional principles‚ real, permanent, verified and supplemental for any international exchange of mitigation outcomes under this mechanism
  • Elaborating how to avoid double counting. ensuring a corresponding adjustment by both Parties for an exchange of mitigation outcomes covered by their ###
  • Establishing eligibility rules to participate in carbon markets. If offsetting is to be allowed (against ECO’s stern advice) developed countries should definitely not compete with developing counties for project financing. It would be inequitable. Use of international credits should be supplemental to ambitious national action. Only countries with absolute, multi-year targets (budgets) should be allowed to engage in markets
  • Aachieving sustainable development.  Given the goal of the mechanism is to support sustainable development, there should be a work program agreed to develop modalities for sustainable development indicators and a ‘do no harm’ assessment.
  • Crating new and additional climate finance. Agree a share of proceeds on all use of markets including in 3.20 (and ideally universally)
  • Achieving net atmospheric benefit. Any new offsetting mechanism (still not listening to ECO??) should reduce emissions through the cancellation of a share of credits used.
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