09.02.2020

Private Sector Voluntary Carbon Markets Taskforce Launched

Today, a private sector-led taskforce was launched to begin scaling Voluntary Carbon Markets, which need to be grown and consolidated to help meet the goals agreed in the Paris Climate Agreement.

As an increasing number of companies commit to reducing emissions, and investors demand clear, credible transition plans, a well-functioning voluntary carbon market will be critical to reaching net zero and net negative goals. To meet this growing demand the current market will need to scale at least 15x, and potentially 160x.

The Taskforce on Scaling Voluntary Carbon Markets, launched by Mark Carney, UN Special Envoy for Climate Action and Finance Advisor to UK Prime Minister Boris Johnson for COP26, is chaired by Bill Winters, Group Chief Executive, Standard Chartered and sponsored by the Institute of International Finance (IIF) under the leadership of IIF President and CEO, Tim Adams. Annette Nazareth, a partner at Davis Polk and former Commissioner of the U.S. Securities and Exchange Commission, will serve as Operating Lead for the Taskforce. McKinsey & Company will provide knowledge and advisory support.

Mark Carney said: “Companies and the investment community are increasingly focused on supporting the transition to a net zero economy and developing credible transition plans. To achieve net zero, they will need to decarbonize and many will need to offset some emissions as part of the transition, creating a surge in demand for offsets. The financial sector can use their expertise in building market infrastructure to create a carbon offset market which connects this demand with supply. I am pleased that the experts from across the financial system as well as buyers and sellers of offsets will come together to create a blueprint for such a market. This collaboration could make an enormous contribution to supporting the whole economy transition required to achieve the climate goals that our society demands and future generations deserve.”

Bill Winters said: “Since the Paris Agreement was signed five years ago, one of the key elements to support its goals, an effective international carbon market, has been missing. By scaling voluntary carbon markets and allowing a global price for carbon to emerge, companies will have the right tools and incentives to reduce emissions at least cost.

“I look forward to leading this group of highly talented market experts to help the private sector fully play its part in decarbonising the global economy through effective and efficient voluntary carbon markets.”

Tim Adams said: “Mitigating and adapting to climate change may be the most consequential challenge we face in our lifetime. Each of us has an obligation to future generations to do what we can, and the financial sector has a large role to play.

“By bringing experts from across the value chain to the table, this Taskforce will play an integral role in the development of an effective voluntary carbon market and will bring us a step closer to net zero emissions.”

In the coming months, the Taskforce will take stock of existing voluntary carbon markets and efforts to grow these markets, identify key challenges and impediments, build consensus on how best to scale up voluntary carbon markets and finally, present a blueprint of actionable solutions.

The Taskforce itself will be comprised of more than 40 leaders from six continents with backgrounds across the carbon market value chain. Participants bring expertise from the financial sector, market infrastructure providers, and buyers and suppliers of carbon offsets.

Voluntary carbon markets, a critical piece of emissions-reduction efforts world-wide, enable buyers to purchase credits that support emissions-reducing projects, thereby contributing to a smaller global emissions footprint overall.

Members of the Taskforce include:

Jeff Huang, AEX Holdings

Mary Grady, American Carbon Registry

(Representative to Be Confirmed), Bank of America

Meaghan Muldoon, BlackRock

Kyle Harrison, Bloomberg NEF

Francois Carré, BNP Paribas

Enric Serra, BP

Robert Coviello, Bunge

Edward Hanrahan, ClimateCare

Mikkel Larsen, DBS

Salla Sulasuo, DSM

Gérald Maradan, EcoAct

Zhao Jinling, Elion

Maryam Bin Fares, Etihad

Jochen Gassner, First Climate Markets

Owen Hewlett, Gold Standard

Kara Mangone, Goldman Sachs

Anthony Belcher, ICE

Kathy Benini, IHS Markit

Isabela Aroeira de Almeida, Itaú Unibanco

Joshua Were, KenGen

Claire Dorrian, LSE

Ben Readman, Macquarie

Emma Mazhari, Maersk

Anirban Ghosh, Mahindra

Jonathan Shopley, Natural Capital Partners

Esteban Mezzano, Nestlé

Peter Zaman, Reed Smith

Paul Dawson, RWE

Bill McGrath, Shell

Jenny Bofinger-Schuster, Siemens

Ingo Puhl, South Pole

Chris Leeds, Standard Chartered

Koushik Chatterjee, Tata Steel

Sebastien Pascual, Temasek

Huw van Steenis, UBS

Thomas Lingard, Unilever

David Antonioli, Verra

Guillaume Quiviger, Vitol

Ingrid York, White & Case

John Melby, XCHG

Source: IIF

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