The Role of Carbon Markets in Transitions

Introduction

Given the increasing efforts by governments to explore strategies addressing climate change, the world continues to demand more innovative technologies and mechanisms to achieve nations' climate targets and sustainable development goals. However, despite the proliferation of all these mitigation strategies, there has been a more than 3% increase in energy-related emissions since the Paris Agreement, as reported by the IEA (see figure 1). The relative decrease in greenhouse gas emissions from developed countries post the Paris Agreement was followed by an increase in emissions from emerging economies. Despite this rise in emissions from developing non-OECD countries, per capita emissions are still less than half of those in developed OECD countries. Given the increasing population growth accompanied by a growing need to lift people from poverty and overcome inequality in the next decades, it is crucial to enable policymakers to take climate mitigation actions without restricting economic and social prospects, especially in emerging economies in Asia and Africa.

Key Charts

Figure 1 - Shifts in GHG emissions following the Paris Agreement

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Figure 2 - Global mapping of Designated National Authorities for Article 6 of the Paris Agreement

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Figure 3 - Bilateral Agreements between countries purchasing carbon credits (left) and those selling them (right), under Article 6.2 of the Paris Agreement

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About the International Energy Forum

The International Energy Forum (IEF) is the world's largest international organization of energy ministers from 73 countries and includes both producing and consuming nations. The IEF has a broad mandate to examine all energy issues, including oil and gas, clean and renewable energy, sustainability, energy transitions and new technologies, data transparency, and energy access. Through the Forum and its associated events, officials, industry executives, and other experts engage in a dialogue of increasing importance to global energy security and sustainability.