Today is Monday, 17 June 2024.

Among others, that official statement intends to encourage U.S. private sector and other stakeholders in the carbon credit value chain to follow those principles and responsibly participate in voluntary carbon markets.

Reacting also in the form a joint statement, one immediate reaction from the private sector came out from “heavy weights” of the financial sector: Michael R. Bloomberg, Mark Carney and Mary L. Schapiro.

“Market integrity will require the sorts of good practices developed in other types of financial markets to apply to voluntary carbon markets”, they said.

Added that voluntary carbon markets are an essential tool to increase investment in projects that reduce emissions and help more businesses grow in a low carbon footprint path. And also boost competitiveness, support job creation, and empower entrepreneurs, farmers, and communities towards a low-carbon future.

“Credits should only be supplied by projects that deliver additional emissions reduction, share the benefits with communities, and respect human rights”.

And make serious recommendations:

1. G20 must deliver high-level principles for globally integrated, high-integrity carbon markets with clear policy objectives, not just in advanced economies, but also for emerging markets and developing countries;

2. Policymakers should adopt common supply, demand, market, and social integrity standards; and

3. Consider the state of play on data and other market infrastructure required to ensure a functioning global market and where gaps need to be urgently addressed.

The statement also highlights that investments, both in the transition to a net zero economy and in nature conservation and restoration, need to increase significantly over the next decade.

As an example, they quote, early retirement of coal-fired power plants alone will require addressing more than US$1 trillion of stranded assets.

“We have little time to waste and firmly believe that we must use every tool at our disposal to catalyze greater action, bend the emissions curve, and scale much-needed transition finance.”

Click at the image below for the official press release.