Views on the use of carbon markets under a post-2020 climate deal

Carbon Market Watch argues that carbon markets should not substitute for domestic emission reductions and warns that oversupply in previous systems, such as the EU ETS and Kyoto Protocol's International Emissions Trading, has undermined their effectiveness. The organization emphasizes that the remaining carbon budget to stay below 2ºC is limited, necessitating a focus on zero/low carbon infrastructure over offsetting. It recommends that any new framework for international unit transfers must include robust eligibility rules, environmental integrity standards, and accounting rules to prevent double claiming.

• The remaining carbon budget to limit global average temperature increases to below 2ºC is estimated by UNEP to be 1000 GtCO2e, which will be exhausted by the mid-2030s at current emission rates, leaving minimal room for offsetting.
• Carbon markets risk causing higher long-term costs by locking in high-carbon infrastructure and should not replace domestic action to reduce emissions across all countries and sectors.
• Previous market-based mechanisms have suffered from severe oversupply; the European Emissions Trading Scheme (EU ETS) and International Emissions Trading (ET) under the Kyoto Protocol were oversupplied by 2 billion and 13 billion allowances, respectively.
• Market-based mechanisms are insufficient on their own to finance necessary emission reductions; public finance is required to build capacity, governance, and policies to attract private investment for low-carbon development.

APA

Carbon Market Watch (2015). Views on the use of carbon markets under a post-2020 climate deal. https://carbonmarketwatch.org/publications/views-on-the-use-of-carbon-markets-under-a-post-2020-climate-deal/

Chicago

Carbon Market Watch. Views on the use of carbon markets under a post-2020 climate deal. 2015. https://carbonmarketwatch.org/publications/views-on-the-use-of-carbon-markets-under-a-post-2020-climate-deal/.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Views on the use of carbon markets under a post-2020 climate deal |date=1 June 2015 |url=https://carbonmarketwatch.org/publications/views-on-the-use-of-carbon-markets-under-a-post-2020-climate-deal/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2015views, author = {{Carbon Market Watch}}, title = {{Views on the use of carbon markets under a post-2020 climate deal}}, publisher = {Carbon Market Watch}, year = {2015}, month = jun, url = {https://carbonmarketwatch.org/publications/views-on-the-use-of-carbon-markets-under-a-post-2020-climate-deal/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }