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Taskforce Establishes Core Carbon Principles, Publishes Roadmap for Scaling Voluntary Carbon Markets
Today, the Taskforce on Scaling Voluntary Carbon Markets published its blueprint on creating a large-scale, transparent carbon credit trading market. To limit atmospheric warming to 1.5°C, the world must halve existing greenhouse gas emissions by 2030 and achieve net-zero emissions by 2050. Every business needs to adjust its business model and develop credible transition plans.
A large-scale voluntary carbon market is critical to reaching the goals of the Paris Agreement – it will enable more companies to turn net-zero commitments into action through investments in emissions abatement projects, where they will have the most effect.
Carbon scientists working in the Amazon in Brazil Carbon scientists working in the Amazon in Brazil
On paper, Brazil should be one of the most attractive markets for carbon offsetting projects. The vast majority of carbon sequestration projects will come through forestry and re-forestry projects and the country offers huge scale and opportunity for both protecting and re-growing two types of forest biomes – the Amazon and the Atlantic.
Market participants have welcomed the evolution of the structure of the voluntary carbon offsetting market. The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), led by former governor of the Bank of England Mark Carney, aims to encourage this growth by adding transparency around the rules and prices of such schemes. This rules and systems-based approach to carbon offsetting credits will allow greater corporate adoption of the tool as more seek to achieve carbon neutrality objectives.
Derivatives exchange operator CME Group will launch a futures contract to provide customers with a market-based solution to manage global emissions risk. The Global Emissions Offset (GEO) contract will start trading on March 1.
Featured: ImpactAlpha Original
Alt-credit and mobile-money apps give African fintechs a closeup view of climate risks – and opportunities. Financial technology firms have leveraged billions of data points across mobile phones and social media to transform loan underwriting for the emerging consumer class. In turn, data from those users is providing fintech service providers real-time insight into something else: the accelerating climate impacts on farmers and rural communities and the urban poor. In Africa, demand for climate data is growing across supply chains to underwrite micro-insurance for farmers and logistics operators, hedge supply-chain risk, and also create a variety of derivatives and other sophisticated products. “Fintech can supercharge the reach and affordability of solutions that have the potential to reduce the exposure of climate vulnerable populations and help them with preparedness,” says