The global carbon mechanisms have succeeded in channelling
billions of Euros towards low-carbon investments in developing
countries, but cannot deliver what is needed in the future without
support including reforms and involvement of North America.
The publication shows that the Clean Development Mechanism
itself has triggered more than 4000 emission-reducing projects in
developing countries and is likely to save up to 2 billion tonnes
of emissions reductions by 2012. Other Mechanisms under the Kyoto
Protocol, including emerging Green Investment Schemes, show great
promise. But many of the gains are at peril, warns the publication,
unless governments act to restore balance in the markets and learn
the emerging lessons.
The publication identifies and analyses three fundamental
problems that must be tackled.
- An excess of supply over demand will mean low prices in the
market without government action
- There must be reforms to improve the efficiency and
environmental performance of the existing mechanisms
- The Global Carbon Mechanisms are and will continue to be a
central pillar in the global response to climate change to 2020,
but are not on their own sufficient. They need to be complemented
by other action to support the required cuts in carbon
Download Global Carbon Mechanisms (CTC748)
Note that the publication does not directly discuss the EU
Emissions Trading Scheme. That scheme has been discussed in other
recent Carbon Trust publications.