World Bank: Unlocking the Potential of Carbon Markets
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For decades, carbon markets have been proposed as a solution to addressing climate change. Unleashing the power of carbon markets can foster sustainable transformation and propel environmental stewardship globally. The private sector has mostly dominated carbon market exchanges, but this will soon change.
This episode of Investing for a Greener World, featuring the World Bank’s senior climate change specialist, Harikumar Gadde, breaks down how countries blessed with natural resources can extract millions of dollars by protecting their natural assets.
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Transcript
High integrity carbon markets can be mutually beneficial for both people and planet. Countries blessed with forests and natural resources can extract millions, if not billions of dollars by protecting these assets.
Harikumar Gadde
World Bank
“Carbon markets basically provide an incentive for communities to reduce emissions, whether by reducing the deforestation or conserving the forests, for example.”
More than two-thirds of nations globally are planning to use carbon markets to meet their Nationally Determined Contributions set in the Paris Agreement in 2015. At the same time, scaling up voluntary carbon markets could be key to providing a sustainable source of financing for climate action. But how do we know if carbon markets will be effective? And how can buyers be sure that emissions are being reduced and the credits generated are of high quality?
Harikumar Gadde
World Bank
“For carbon markets to be effective, verification is key. If you get this right, you can feed investor confidence and generate better prices. I am in Jordan right now where World Bank is helping the government of Jordan, with establishing a robust monitoring, reporting and verification system to build that trust and the transparency that is needed for carbon markets.”
It is also important to know how these systems will be regulated for there to be adequate trust and accountability.
Harikumar Gadde
World Bank
“It is important for both supply and demand side to be well managed. This includes all stakeholders, host countries, project developers, regulators, verifiers and carbon market buyers play an equal role and must be done with integrity.”
At a time when environmental responsibility meets evolving economic opportunities, carbon markets can be key to getting good outcomes for people and planet.
Harikumar Gadde
World Bank
“I would like to see countries and private sector fully appreciate the benefits that carbon markets bring, to channel the finance that is needed and help achieving their respective climate objectives and working together to build the trust and transparency that is needed. I also like to see full integration of carbon revenues and investment decisions that investors make and support scaling up the finance that is needed and to see people aware of the benefits that carbon markets bring to communities.”
Harikumar Gadde
World Bank
“Finally, we have an enormous experience with carbon markets already and we all together can build a market that works for everyone.”
Carbon markets could help us end poverty in a thriving and sustainable world.