Madlen King, Global Head of Climate Change & Sustainability at Lloyd’s Register Quality Assurance (LRQA), shares her insight on the implications of the Framework for Various Approaches for the carbon market;
In my view the successes that have so far been achieved in reducing global greenhouse emissions have occurred where market mechanisms have been used. Had we not placed a monetary value on a tonne of GHG emissions in so many parts of the world, I believe the global situation with regard to climate change would be far worse than it presently is. And the successes so far have been achieved because those tonnes have had a recognised and accepted value in so many parts of the world. With the end of the Kyoto Protocol first commitment period and the reduction of countries participating in the 2nd commitment period this has greatly reduced the parts of the world where the existing credits from the Kyoto flexible mechanisms can be used.
We are now therefore in a position where we are trying to link the schemes from the bottom-up rather than apply an international approach from the top-down. Without a framework under which these schemes operate, the variety of NAMAs and new market mechanisms will continue to develop in a more fragmented and unharmonised manner, the options for global trade of carbon will be reduced and thus so will the opportunities for financially advantageous green development.
Madlen King will be speaking at Carbon Expo, Barcelona on Thursday 30 May:
• 1 pm - a Post-Doha Look at the Framework for Various Approaches and New Market Mechanisms (FVA/NMM)
• 2 pm - the Business Partnership for Market Readiness (B-PMR): Supporting Businesses and Sharing Best Business Practices in the Next Wave of Carbon Markets.
Come and meet Madlen and LRQA’s other climate change technical specialists from around the world at the LRQA stand at the show - stand no. A118, Hall 5.
Listen to the podcast here.