As we speak is Wednesday, 29 Might 2024.
Here’s what Janet Yellen, United States Secretary of the Treasury, introduced yesterday on function of how international locations can higher handle international challenges together with local weather:
“We need to use all the tools at our disposal—creatively, thoughtfully, and at scale. I believe that harnessing the power of markets and private capital is critical. This includes efforts to grow high-integrity voluntary carbon markets … And they can channel capital towards the most effective climate solutions. Today, voluntary carbon markets are relatively small. But these markets have the potential to support significant decarbonization—if we address some key challenges”.
“Unlike commodities like nickel or soybeans that may be physically delivered to the buyer for inspection and use, the emissions savings associated with a carbon credit are generally “delivered” to the environment. This makes it tougher to evaluate the standard of carbon credit—that’s, whether or not they are surely related to emissions financial savings.”
However the apex of her speech was the announcement of a joint assertion and key rules to help high-integrity voluntary carbon markets.
“First, supply integrity … Second, demand integrity … and Third, market integrity.”
Click on under to obtain the official 12 pages doc and here for a fact sheeteach posted by the White Home.
VCM-Joint-Coverage-Assertion-and-Ideas
Obtain PDF • 5.48MB
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Carbon credits and the activities that generate them should meet credible atmospheric integrity standards and represent real decarbonization.
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Credit-generating activities should avoid environmental and social harm and should, where applicable, support co-benefits and transparent and inclusive benefits-sharing.
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Corporate buyers that use credits should prioritize measurable emissions reductions within their own value chains.
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Credit users should publicly disclose the nature of purchased and retired credits.
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Public claims by credit users should accurately reflect the climate impact of retired credits and should only rely on credits that meet high integrity standards.
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Market participants should contribute to efforts that improve market integrity.
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Policymakers and market participants should facilitate efficient market participation and seek to lower transaction costs.
Click here to read the exact remarks from Mrs. Yellen on high-integrity voluntary carbon markets in occasion by Bloomberg Philanthropies, the Heart for Local weather and Vitality Options, and the Environmental Protection Fund, in line with the press launch of the US Division of Treasury. You may also watch her within the 7 preliminary minutes of this YouTube video.
Because the rules are co-signed by two different U.S. Secretaries, listed below are their respective views in particular press releases:
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“With the right incentives and guardrails in place, voluntary carbon markets can be a source of critical financing to drive decarbonization and clean energy solutions”, Department of Energy.
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“High-integrity voluntary carbon markets offer a promising tool to create new revenue streams for producers and achieve greenhouse gas reductions from the agriculture and forest sectors”, Department of Agriculture.
“We encourage the U.S. private sector and other stakeholders in the carbon credit value chain to responsibly participate in voluntary carbon markets, consistent with the principles”.
