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, 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.

Bibliographic Details

Main Author:	Ambrosi, Philippe
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2011-10-31
Subjects:	ABATEMENT COSTS, ABATEMENT POTENTIAL, ACID, ACID PRODUCTION, ADAPTATION FUND, AFFORESTATION, AGGREGATE EMISSIONS, AIR, AIR QUALITY, ALLOCATION, ALLOWANCE, AUCTION, AUCTION REVENUES, BASELINE EMISSION, BASELINE EMISSION INTENSITY, BASELINE METHODOLOGY, BIODIVERSITY CONSERVATION, BIOGAS, BIOMASS, BIOMASS ENERGY, CAPACITY BUILDING, CARBON, CARBON ASSETS, CARBON BENEFITS, CARBON CREDITING, CARBON CREDITS, CARBON EXCHANGE, CARBON FINANCE, CARBON FINANCE OPPORTUNITIES, CARBON FOOTPRINT, CARBON FUND, CARBON FUNDS, CARBON IN SOILS, CARBON INTENSITY, CARBON INVESTMENT, CARBON MARKET, CARBON MARKETS, CARBON OFFSET, CARBON PRICE, CARBON PROJECTS, CARBON REVENUES, CARBON SEQUESTRATION, CARBON TAX, CARBON TAXES, CARBON TRADING, CERTIFIED EMISSION REDUCTIONS, CHEMICAL INDUSTRY, CLEAN DEVELOPMENT, CLEAN DEVELOPMENT MECHANISM, CLEAN ENERGY, CLEAN TECHNOLOGY, CLEAN TECHNOLOGY FUND, CLEANER TECHNOLOGIES, CLIMATE, CLIMATE ACTION, CLIMATE CHANGE, CLIMATE CHANGE MITIGATION, CLIMATE POLICIES, CLIMATE POLICY, CO, CO2, COAL, COMPACT FLUORESCENT LAMPS, COMPLIANCE COSTS, COST EFFECTIVENESS, COST OF ABATEMENT, COST SAVINGS, COSTS OF ABATEMENT, DECISION MAKING, DECREASE IN EMISSIONS, DEFORESTATION, DEMAND-SIDE MANAGEMENT, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DIFFUSION, DOMESTIC ABATEMENT, DOMESTIC EMISSIONS, DOMESTIC MARKETS, DROUGHT, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECOSYSTEM, EMISSION, EMISSION ALLOWANCES, EMISSION INTENSITY, EMISSION REDUCTION, EMISSION REDUCTION PURCHASE AGREEMENT, EMISSION REDUCTION UNITS, EMISSION REDUCTIONS, EMISSION REPORTING, EMISSION RIGHTS, EMISSION TRAJECTORIES, EMISSION-REDUCTION, EMISSIONS, EMISSIONS CAPS, EMISSIONS FROM ENERGY PRODUCTION, EMISSIONS FROM LAND USE, EMISSIONS REDUCTIONS, EMISSIONS STANDARDS, EMISSIONS TARGETS, ENERGY DEMAND, ENERGY EFFICIENCY, ENERGY EFFICIENCY MEASURES, ENERGY EFFICIENCY STANDARDS, ENERGY SECURITY, ENVIRONMENTAL, ENVIRONMENTAL BENEFITS, ENVIRONMENTAL INTEGRITY, ENVIRONMENTAL QUALITY, EROSION CONTROL, ESTIMATES OF CARBON, EXCESS EMISSIONS, EXCHANGE RATE, FINANCIAL BARRIERS, FINANCIAL CONSTRAINTS, FINANCIAL FLOWS, FINANCIAL INNOVATION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL PRODUCTS, FINANCIAL RESOURCES, FINANCIAL SECTOR, FOREST, FOREST CARBON, FOREST CONSERVATION, FORESTRY, FORESTRY ACTIVITIES, FORESTRY CARBON, FORESTRY PROJECTS, FOSSIL FUEL, FRAMEWORK CONVENTION ON CLIMATE CHANGE, FUEL SWITCH, FUEL SWITCHING, FUELS, FUGITIVE EMISSIONS, GENERATION CAPACITY, GHG, GLOBAL CARBON MARKET, GLOBAL EMISSIONS, GLOBAL ENVIRONMENT FACILITY, GLOBAL WARMING, GOLD, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GASES, HFCS, HIGH UNEMPLOYMENT, INCOME, INDUSTRIAL GASES, INTERNATIONAL CREDITS, INTERNATIONAL EMISSIONS, INTERNATIONAL FINANCE, INTERNATIONAL OFFSETS, INTERNATIONAL TRADING, INVESTMENT DECISIONS, IRON, LAND MANAGEMENT, LAND USE, LAND USE CHANGE, LAND-USE CHANGE, LANDFILL, LANDFILL GAS, LIVING CONDITIONS, LOW-CARBON, LOWER PRICE, MARGINAL ABATEMENT, MARGINAL ABATEMENT COST, MARGINAL ABATEMENT COSTS, MARKET INSTRUMENTS, MARKET MECHANISMS, MARKET PENETRATION, METHANE, MITIGATION ACTIONS, N2O, NATURAL CAPITAL, NATURAL RESOURCES, OFFSET PRICE, OIL, PFCS, PORTFOLIO, POWER GENERATION, POWER SECTOR, PRESENT VALUE, PRICE FLOOR, PRICE SIGNAL, PRICE VOLATILITY, PURCHASE AGREEMENTS, QUANTITATIVE ANALYSIS, REDUCING EMISSIONS, REGIONAL GREENHOUSE GAS INITIATIVE, RENEWABLE ENERGY, RENEWABLE ENERGY SOURCES, RESILIENCE TO CLIMATE CHANGE, RICE HUSK, SCENARIOS, SF6, SMOKE, SOIL CARBON, STRATEGIC RESERVE, STREAMS, SUSTAINABLE DEVELOPMENT, TEMPERATURE, TIMBER, TRADE SYSTEM, TRANSACTION COSTS, TRANSACTIONS COSTS, UNCERTAINTIES, UNEP, USE OF OFFSETS, VERIFICATION OF EMISSION REDUCTIONS, VERIFICATION PROCEDURES, VOLUNTARY BASIS, WASTE MANAGEMENT, WATER POLLUTION, WIND, WIND POWER,
Online Access:	http://documents.worldbank.org/curated/en/964701468152687188/How-to-keep-momentum-up-in-carbon-markets https://hdl.handle.net/10986/27093
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