How to Keep Momentum Up in Carbon Markets?
This note examines how to maximize the benefits from the use of market instruments in support of developing countries' low-emission development priorities. First, it briefly surveys the current state and trends of the carbon market, highlighti...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/964701468152687188/How-to-keep-momentum-up-in-carbon-markets http://hdl.handle.net/10986/27093 |
| Summary: | This note examines how to maximize the
benefits from the use of market instruments in support of
developing countries' low-emission development
priorities. First, it briefly surveys the current state and
trends of the carbon market, highlighting the main
achievements of carbon finance over its decade-long history.
Second, it reviews updated scenarios of the scale of future
carbon markets and associated financial flows, in light of
developments in climate negotiations and domestic markets.
Finally, it identifies the necessary steps to scale up
carbon market flows in future, on both the demand and supply
sides, including the reform of existing mechanisms, and
innovation to broaden the scope, scale and reach of carbon
markets. The most important determinant of carbon offset
market flows to developing countries is clearly the level of
international mitigation targets: the more ambitious the
targets the greater the scope for such flows. Developed
countries can also encourage flows by increasing
supplementary limits, which are the proportion of mitigation
targets that can be met by purchases from developing
countries. Finally, there remains a considerable need for
innovation, awareness-raising and capacity building in
public and private institutions in developing countries, to
increase their participation in the carbon market and build
and enabling environment for low-emission development. |
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