Enhancing climate protection ambition using international carbon markets

Context

Carbon markets serve as an effective and cost-efficient tool for mitigating climate change. Alongside other greenhouse gas pricing mechanisms, such as CO2 taxes, these markets encourage climate-friendly investments. Both compliance and voluntary markets continue evolving, necessitating robust regulatory frameworks across international, national, and sub-national governments. Government officials are aligning their climate strategies and institutional processes with evolving international regulations on carbon markets and other climate financing mechanisms. These steps enable countries to secure additional funding to achieve their climate protection goals.

Objective

Public, private, and civil decision-makers effectively use national and international carbon market instruments to implement their climate change mitigation activities.

Approach

The project employs a comprehensive strategy to support carbon market development and promote climate protection in Eastern Africa and the Caribbean through the following measures:

• Advance innovative projects: The project supports the design and implementation of new carbon market projects, which increases ambition and financial flows for climate protection.
• Conduct studies and analyses: It enhances the ability of public decision-makers to utilise existing carbon market instruments.
• Advise stakeholders: The project provides guidance to government agencies and private industry actors on leveraging market-based instruments and participating in carbon markets, in line with Article 6 of the Paris Agreement.
• Foster knowledge exchange: It shares experiences and lessons learned with relevant stakeholders at conferences and workshops.
• Enhance international participation: The project supports the involvement of Eastern African and Caribbean states in international negotiations and facilitates knowledge exchange and best practices among partner countries.

Last update: July 2024