Enabling Conditions to Unlock Private Sector Demand in Carbon Markets: Policy Considerations for Host Jurisdictions
Today, the Beyond Alliance, Emergent, and the Symbiosis Coalition have released a news policy paper “Enabling Conditions to Unlock Private Sector Carbon Market Demand”.
Despite the demand and the capital available, investment in the voluntary carbon market remains far below this potential. This means that many forest countries are not capitalizing on the potential of high integrity carbon markets to deliver climate finance to combat deforestation and build sustainable economies based on healthy trees. Why? One challenge is that private sector buyers need more regulatory certainty and clarity from host jurisdictions to make the long-term commitments required to scale up high-quality carbon credit supply.
This paper, based on insight from a range of corporate buyers, identifies nine policy recommendations that buyers and investors consistently cite as important for directing capital to carbon projects with confidence. We recognize that governments are already advancing policies to create clarity and certainty, and these recommendations aim to complement and support those efforts.
The paper is designed to respond to frequent questions received by our coalitions and complement the Shared Principles recently launched by the The Coalition to Grow Carbon Markets, which articulate a set of high-level considerations from governments to guide corporate use of carbon credits. Collectively, these resources demonstrate how governments and the private sector can work together to deliver high-integrity climate impact and financial scale within the carbon markets.
We encourage governments, development partners, civil society organizations, and market participants to engage with these recommendations as we collectively build the high-integrity markets needed to meet global climate goals. We are also keen to hear feedback on the recommendations included in the paper.
Read the blog post here.
Read the full paper here.
