Immediately is Wednesday, Could 29, 2024.
Here is what Janet Yellen, United States Secretary of the Treasury, introduced yesterday on how nations can higher deal with international challenges, together with local weather ones:
“We need to use all the tools at our disposal – creatively, thoughtfully and at scale. I believe harnessing the power of markets and private capital is critical. This includes efforts to develop high-integrity voluntary carbon markets… and channel capital into 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, which can be physically delivered to the buyer for inspection and use, the emissions reductions associated with a carbon credit are generally “delivered” to the environment. This makes it harder to evaluate the standard of carbon credit – that’s, whether or not they’re really linked to emissions reductions.”
However the fruits of his speech was the joint announcement of basic rules to help high-integrity voluntary carbon markets.
“First, integrity of supply… Second, integrity of demand… and Third, integrity of the market.”
Click on under to obtain the official 12-page doc and here for the informationeach launched by the White Home.
VCM-Joint-Coverage-Assertion-and-Rules
Obtain PDF • 5.48MB
Here are the principles:
-
Carbon credits and the activities that generate them must comply with atmospheric integrity standards and represent true decarbonization.
-
Credit-generating activities must avoid environmental and social harm and must, where applicable, support co-benefits and transparent and inclusive benefit-sharing.
-
Corporate buyers using credits must prioritize measurable emissions reductions in their own value chains.
-
Credit users must publicly disclose the nature of credits acquired and withdrawn.
-
Credit users’ public claims must accurately reflect the climate impact of withdrawn credits and must only be based on credits that meet high standards of integrity.
-
Market participants must contribute to efforts that improve market integrity.
-
Policymakers and market participants should facilitate efficient market participation and seek to reduce transaction costs.
Clique here to read Ms. Yellen’s exact thoughts on high-integrity voluntary carbon markets at occasion by Bloomberg Philanthropies, the Middle for Local weather and Power Optionse the Environmental Protection Fund, in line with the US Treasury Division press launch. It’s also possible to watch it within the opening 7 minutes of this video on YouTube.
Because the rules are co-signed by two different US secretaries, listed here are their respective views in particular press releases:
-
“With the right incentives and protections in place, voluntary carbon markets can be a critical financing source to drive decarbonization and clean energy solutions, Department of Energy.
-
“High-integrity voluntary carbon markets offer a promising tool to create new revenue streams for producers and achieve greenhouse gas reductions in the agricultural and forestry sectors,” Agriculture department.
“We encourage the U.S. private sector and other stakeholders in the carbon credits value chain to participate responsibly in voluntary carbon markets in a manner consistent with the principles.”
