IETA wants to secure a sound foundation for carbon pricing
Business association IETA published its priorities for the Paris climate agreement, aiming to persuade countries to secure a “sound foundation” for carbon pricing by making several technical decisions in the agreed texts amid doubts among poor nations about whether such a move should be linked to aid guarantees from rich governments.
The group said the core Paris agreement should contain a provision to enable countries to transfer units between pricing systems under a transparent accounting framework, arguing that networked carbon markets perform better and allow nations to be more ambitious.
IETA added that the wider “decision” text, aiming to thrash out further details before the agreement enters into force from 2020, should adopt decisions to establish by 2017 a unified project-crediting mechanism and market tools to assist countries in achieving their INDCs.
The group added that the Paris conference must deliver continued support to the Green Climate Fund, which they said could work alongside market mechanisms to multiply the effectiveness of private capital flowing into poorer countries by “de-risking” those investments.
Developed countries have promised to channel at least $100 billion per year to poorer nations by 2020 to help them curb their GHG emissions and adapt to the effects of climate change, but initial pledges made over the past few years suggest governments are off track towards meeting this target.