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Climate Focus is a market leader in implementing the project-based mechanisms of the Kyoto Protocol, the EU emission trading scheme, US climate policies and emerging incentive schemes that reduce emissions from deforestation and forest degradation. Learn more about the relevant instruments and mechanism via our website and by contacting us directly.
The Kyoto Protocol established mechanisms that allowed the transfer of emissions reductions internationally through the creation of project offsets under the Clean Development Mechanism (CDM) and Joint Implementation (JI). Since their enactment in 2003, these “flexible mechanisms” have generated about 4.5 billion tons of greenhouse gas emission reductions in developed and developing countries across dozens of sectors.
In India, long-lived fluorescent light bulbs would avoid millions of tons of GHG emissions from coal power plants, but most rural households cannot afford them. In Africa, collection of firewood degrades forests but distributing efficient stoves to ease the demand has been held up by high transaction costs for Clean Development Mechanism (CDM) projects. Both of these are now the focus of “Programme of Activities” (PoA) to bundle activities to realize large scale emission reductions.
The international voluntary carbon market creates incentives for reducing greenhouse gas emissions outside of the government-mandated cap-and-trade systems. Although most buyers come from Europe, the US and Australia, the USD700 million voluntary carbon market sources offsets from every major region and sector, especially renewable energy and land use. It is driven by organizations, companies, and individuals who wish to voluntarily reduce their carbon footprint. Despite ongoing policy uncertainty, this market is expected to continue it recent growth with market values nearly doubling annually since 2007.
Climate change is one of the defining environmental challenges of our time. How the world responds to climate change will be decided through international and domestic negotiations. Governments are trying to craft policies ensuring an effective, efficient response to the challenge by reducing emissions and adapting to its impacts under national and international law.
The European Union Emissions Trading Scheme (EU ETS) is the largest multi-sector cap-and-trade program currently in effect. Created in 2005, the EU ETS quickly became the pillar of the EU climate policy and the largest functioning carbon market.
The reduction of emissions from tropical deforestation is one of the most cost-effective greenhouse gas mitigation strategies to stop the rise of global temperatures. As forests were cleared or converted, land use emissions rose and now contribute about 14% of humans’ GHG emissions. Slowing forest loss and enhancing the terrestrial carbon sink are among the most effective mitigation and adaptation options. To do this, the international community has proposed offering incentives for Reducing Emissions from Deforestation and Forest Degradation, the enhancement of forest carbon stocks, conservation, and sustainable forest management (REDD+) in developing countries.
Least developed countries (LDC) are among the lowest greenhouse gas emitters in the world, yet receive only modest support from carbon markets and climate finance. This is changing: financing for climate mitigation and adaptation is converging in LDCs. The international community has committed to financing USD 100 billion for mitigation and adaptation by 2020 at the Copenhagen climate meeting in 2009, and renewed attention on these countries. Private markets are also place a premium on credible offsets from Africa and poor developing countries.
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