Wednesday, March 9, 2022 — Carbon markets allow countries or other entities – such as firms – that reduce their carbon emissions (for example, by switching to renewable energy) to trade with other entities, which can then count these carbon credits to their emissions reduction commitments.
Functioning and efficient carbon markets are considered central and critical to effective global climate action, as enshrined in Article 6 of the historic Paris Agreement. Therefore, agreement on Article 6 at the twenty-sixth Conference of the Parties to the UN Framework Convention on Climate Change (COP-26) was hailed as a major achievement of the Conference.
With the Paris Rulebook essentially complete, and new and improved mechanisms being put in place, the countries of the OECS must build their capacities to access and participate in carbon markets. In this regard, it is recognised that the involvement of both governments and the private sector is needed for carbon markets to meet the desired objective.
In an effort to raise awareness and build capacity, the OECS, under the Caribbean NDC Finance Initiative (NDCFI), and in collaboration with the UNFCCC Regional Collaboration Centre (RCC) – Grenada; Climate Neutral Now and GIZ, on behalf of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, organised a two-part virtual Caribbean Private Sector Dialogue on Carbon Markets and Carbon Finance.
The first webinar held on February 3, 2022, provided an introduction to Carbon Markets and identified areas where the Caribbean public and private sectors could possibly participate in such markets.
The second webinar took place on February 24 and showcased recent and ongoing examples of carbon market initiatives in the region. It also featured the perspectives of the Commonwealth of Dominica and the Klik Foundation, a Swiss investor, who are currently preparing a carbon market project.
As a result of the dialogue, participants, who came from both the public and private sectors, gained a more in-depth understanding of how Carbon Markets can work in the Eastern Caribbean region.
Mr. Crispin d’Auvergne, Programme Director for Climate and Disaster Resilience at the OECS Commission noted, “As a region, we must seek to find new and innovative means of resource mobilisation. Carbon markets are part of a new economy – one that looks at more effectively valuing and leveraging environmental services for sustainable development.”
The Caribbean NDC Finance Initiative (NDCFI) aims to advance and accelerate NDC implementation and Caribbean climate action. It is a joint initiative of the OECS Commission and the Government of Saint Lucia established with political support from the UNFCCC and under the auspices of the NDC Partnership.