Publication: Defining Results-Based Climate Finance, Voluntary Carbon Markets and Compliance Carbon Markets
Date
2022
ISSN
Published
2022
Author(s)
World Bank
Abstract
Under the Kyoto Protocol, compliance
carbon markets (CCM) were primarily in the form of the Clean
Development Mechanism (CDM) and Joint Implementation (JI).
In 2015, the Paris Agreement introduced a new bottom-up
approach to address climate change. Under the Paris
Agreement, Parties set non-binding climate targets through
their nationally determined contributions (NDCs). Article 6
of the Paris Agreement recognizes cooperation among
countries for achieving their NDCs and raising climate
ambition. This provides the basis for international CCM,
where countries can trade emission reduction (“carbon”)
credits with each other. Article 9 of the Paris Agreement
stipulates that developed countries shall provide resources
to developing countries for climate mitigation and
adaptation. Developed countries would also take the lead in
mobilizing climate finance from a variety of sources that
represents a progression beyond previous efforts. The
objective of this information paper is to outline three
avenues for monetizing climate results – results-based
climate finance (RBCF), voluntary carbon markets (VCM), and
CCM. The paper is intended to describe activities by
non-state or private sector actors in these mechanisms, and
how their participation can facilitate the achievement of
climate benefits in a cost-effective manner.
Link to Data Set
Citation
“World Bank. 2022. Defining Results-Based Climate Finance, Voluntary Carbon Markets and Compliance Carbon Markets. © Washington, DC. http://hdl.handle.net/10986/38258 License: CC BY 3.0 IGO.”