Carbon and Climate Finance

Carbon markets are powerful instruments for effectively managing emissions of greenhouse gases in a manner which is economically efficient for society as a whole. Both domestic and international carbon markets can make a significant contribution to meeting a country’s emission reduction targets. In the absence of specific market-based mechanisms, climate finance is an essential tool to ensure that emission reduction opportunities are successfully implemented, for example through “results-based” approaches. Climate finance could also be used in the context of the “non-market approaches to sustainable development” mentioned in Article 6 of the Paris Agreement.

Supporting the development of the next generation tools

Through our project development activities and methodological consulting work, we have gathered extensive expertise in the identification and development of GHG emission mitigation projects, as well as the protocols used to quantify their emission reductions. We have witnessed the tremendous opportunities carbon and climate finance provides in reducing energy and carbon intensity in developing and emerging markets, but we are also aware of barriers and challenges in implementation and monetization of GHG reduction opportunities. Our hands-on experience in the identification, development and implementation of GHG emission mitigation projects, and in the successful monetization of emission reductions, have made us a valuable partner in the on-going work on the next generation of carbon and climate finance instruments.

Our expertise on emission trading systems, crediting mechanism and climate finance encompasses the following:

• Support and advice on the design and operation of emission trading systems (ETS)
• Identification and development of CDM and JI projects, and other project-based emission reduction projects
• Identification and development of domestic offset schemes
• Transparency and monitoring, reporting and verification (MRV) across a range of market mechanisms
• Design and development of approaches for results-based financing (RBF)
• Support in (I)NDC development and analysis of financial needs
• Definition and evaluation of Nationally Appropriate Mitigation Actions (NAMAs) or sectoral approaches to crediting
• Development of NAMA and sectoral monitoring methodologies and frameworks
• Analysis and research on standardised baselines and standardized crediting schemes
• Development of project opportunities under new crediting mechanisms such as the EU Fuel Quality Directive