The increase in GHG concentrations, largely due to human activities, is causing a rise in global temperatures, leading to various climate change impacts such as extreme weather events, sea-level rise, and disruptions to ecosystems.
The urgency of addressing climate change is underscored by the increasing frequency and intensity of climate-related disasters, highlighting the need for effective and swift action.
Role of Carbon Markets
Price on Carbon: Carbon markets establish a price for carbon emissions, making it financially beneficial for entities to reduce their footprint.
Incentivizing Reduction: By creating a market for carbon credits, these systems encourage businesses and individuals to adopt cleaner technologies and practices to lower their emissions and potentially profit from selling unused credits.
Facilitating Climate Action: Carbon markets enable the transfer of emission reductions from one location to another, allowing for more cost-effective and efficient climate action.
Mobilizing Finance: carbon markets provide a mechanism for channeling finance towards projects that reduce or remove greenhouse gas emissions, such as renewable energy projects or reforestation initiatives.
An efficient tool for action
Cost-Effective Emission Reductions: Carbon markets can help achieve emission reductions at a lower cost compared to solely relying on regulations.
Global Cooperation: They facilitate international cooperation on climate action by allowing countries to trade emission reductions and support each other in meeting their climate goals.
Accelerating the Transition: Carbon markets can accelerate the transition to a low-carbon economy by providing a framework for businesses to adapt to a changing regulatory landscape and meet evolving consumer expectations.
Complementing Regulations: They can be used to supplement and enhance the effectiveness of traditional regulations, providing a more flexible and market-based approach to climate change mitigation.
