Transcript TITLE HEADER - Latin American Carbon Forum

Panel Session
Carbon trading beyond 2012: New approaches
and emerging market
Brief introductory remarks.
John Kilani, Director SDM, UNFCCC secretariat
Latin American Carbon Forum, Costa Rica, 27-29 September 2011
Absence of clear signals about demand
• The signals provided by Parties since Bali
◦ Continuation of the CDM, but with improvements
◦ Discussions on new market mechanisms
• The Cancun Agreement
◦ The strongest signal that countries have given so far
◦ Commitment to a maximum temperature rise of 2 degree,
and a consideration of 1.5 degrees in the near future
◦ All developed countries have submitted emission
reduction pledges and more than 40 developing countries
have submitted their mitigation actions
• However, the signal is still not clear enough
from the perspective of market players
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Some emerging trends, initiatives and proposals
• The work of the CDM EB on improvements of
the CDM
• Negotiations under the AWG-KP
• Proposals on new market mechanisms under
the AWG-LCA
• Emerging national and regional carbon markets
• Bilateral initiatives
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Looking into the future from the past
There is no reason to believe that any
new market mechanisms will find the
going easier, unless of course they
learn from what has gone before.
No need to throw away the baby and
the bath water
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Building on the experiences of the past 10 years
• A lot has been achieved
• Private capital has been mobilized
• Information on what works and what doesn’t
• Market mechanisms that lack international
oversight will have credibility challenges
• Fragmentation should not necessarily be seen
as a bad thing. It signals a commitment by
Parties from different fronts
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