Carbon Market Watch Recommendations for SBI-38, SBSTA-38 and ADP 2-2

Carbon Market Watch argues that existing carbon markets have collapsed due to oversupply and poor quality, specifically citing the CDM and JI. The briefing recommends strengthening additionality criteria, shortening crediting periods, and establishing mandatory human rights and sustainability safeguards. For new mechanisms like the FVA and NMM, it advocates for a binding international governance structure and a common transaction tracking mechanism to prevent double counting of emission reductions.

• The Clean Development Mechanism (CDM) and Joint Implementation (JI) markets collapsed in 2012, with prices falling below Euro 0.4, which is too low to finance low-carbon technologies.
• Current CDM additionality rules are ineffective, leading to the issuance of credits for projects that would have occurred without CDM support; specifically, large-scale power supply and methane projects could increase global GHG emissions by up to 3.6 Giga tonnes CO2e through 2020 if they remain eligible.
• Carbon Market Watch recommends reforming the CDM by limiting crediting periods to 10 years or less and making them non-renewable to prevent credits from projects that are no longer additional.
• The CDM Executive Board has registered projects despite evidence of human rights abuses, claiming it lacks a mandate to address human rights; the briefing recommends suspending projects that fail to meet human rights obligations.
• Joint Implementation (JI) has a poor track record, with Russia and Ukraine issuing millions of credits lacking climate benefits; the briefing recommends that ERU issuance after 2012 only occur once new AAUs have been issued.
• To prevent double counting in the New Market-based Mechanism (NMM) and Framework for Various Approaches (FVA), which could reduce 2020 abatement needs by 1.6 billion tons CO2e, a common international transaction tracking mechanism with unique serial numbers is recommended.
• The briefing argues that the NMM and FVA require a binding international governance structure, including an appointed UN body as a standards-setting organization, to avoid the failures of JI Track 1's voluntary guidelines.

APA

Carbon Market Watch (2013). Carbon Market Watch Recommendations for SBI-38, SBSTA-38 and ADP 2-2. https://carbonmarketwatch.org/wp-content/uploads/2013/05/CarbonMarketWatch_Recommendations_SB38.pdf

Chicago

Carbon Market Watch. Carbon Market Watch Recommendations for SBI-38, SBSTA-38 and ADP 2-2. 2013. https://carbonmarketwatch.org/wp-content/uploads/2013/05/CarbonMarketWatch_Recommendations_SB38.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=Carbon Market Watch Recommendations for SBI-38, SBSTA-38 and ADP 2-2 |date=30 May 2013 |url=https://carbonmarketwatch.org/wp-content/uploads/2013/05/CarbonMarketWatch_Recommendations_SB38.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2013carbon, author = {{Carbon Market Watch}}, title = {{Carbon Market Watch Recommendations for SBI-38, SBSTA-38 and ADP 2-2}}, institution = {Carbon Market Watch}, year = {2013}, month = may, url = {https://carbonmarketwatch.org/wp-content/uploads/2013/05/CarbonMarketWatch_Recommendations_SB38.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }