Introduction: The UK COP Presidency has planned informal ministerial consultations on July 7 and July 12, in order to make progress on Article 6, which is still in stalemate despite recent technical discussions. Ministers have been asked to discuss a set of framing questions on three key sticking points: double counting of emissions, possible transition…
Update 1 July: Verra published a statement in response to this report, questioning its findings and accusing it of using flawed methodologies. Our response to Verra is available here. Executive summary The Colombian government adopted a carbon tax of approximately US$5/tCO2e covering fossil fuels in 2016. Companies can avoid paying the tax by purchasing carbon…
A joint briefing by Carbon Market Watch, Secours Catholique, CCFD – Terre Solidaire and Institute for Agriculture & Trade Policy (IATP) Executive summary Climate mitigation projects in the agriculture sector, particularly those focused on storing carbon in soils, are increasingly being tied to carbon markets. But the impact of these initiatives is highly questionable. First,…
Introduction This briefing gives an overview of the current discussions under Article 6 of the Paris Agreement which establishes the foundation for market-based climate measures after 2020. It lays out key lessons from the Kyoto Protocol markets, highlights essential issues within the Article 6 negotiations, and provides recommendations on how to solve them. It concludes…
Summary: This briefing counters industry attempts to use the coronavirus pandemic as a pretext to weaken international, European and national climate and carbon pricing laws. It debunks myths and provides policy recommendations to decision-makers. The examples include large polluters pushing for delays in implementing the EU Green Deal and national climate policies and airlines aiming…
Executive Summary The Clean Development Mechanism (CDM) was set up under the 1997 Kyoto Protocol to allow developed countries to buy emissions reductions from developing countries in the form of credits, called Certified Emissions Reductions (CERs). The objectives of the CDM are to help developed countries achieve their climate commitment and to assist developing countries in achieving sustainable…
Executive Summary The Paris Agreement breaks away from the division of “developed” vs. “developing” countries which was enshrined in the Kyoto Protocol. It sets a new dynamic which will inevitably impact the next generation of carbon markets. It further sets new objectives for these mechanisms, such as contributing to overall mitigation of global GHG emissions and…
Introduction Over the past 20 years, global efforts to mitigate the effects of climate change have increasingly relied upon the implementation of local mitigation projects. While aiming to reduce emissions in the most cost-effective way, some of these projects have built up a record of adverse impacts on local people, resulting in the displacement of…
The Paris Agreement marks a new era for international climate action in general, and specifically for international carbon markets. Though the agreement does not mention markets per se, Article 6 paragraph 4 establishes what has become to be known as the Sustainable Development Mechanism (SDM) which builds on and shares some features of the Kyoto flexible mechanisms namely the Clean Development Mechanism (CDM) and Joint Implementation (JI).
The Paris Agreement represents a new era for international climate action, including for international carbon markets. Humans have emitted so much into the atmosphere that even if compensated, very little can still be emitted to limit serious consequences of climate change. 2°C of warming would have very negative effects, which is why it is important to swiftly work towards the Paris goal of the 1.5°C limit. If carbon markets are to help work towards this goal, they must work to rapidly increase ambition and guarantee high environmental integrity.
Carbon pricing 
International transport 
Climate governance 
Fair climate action