Latin American Carbon Forum Highlights Region’s Potential
2 November 2010: Participants to the Fifth Latin American Carbon Forum, which took place in Santo Domingo, Dominican Republic, from 13-15 October 2010, expressed concern over barriers to carbon mitigation projects and the lack of progress in the climate change negotiations.
The Carbon Forum was supported by the Latin American Energy Organization (OLADE), the International Emissions Trading Association (IETA), the World Bank Institute (WBI), the Inter-American Development Bank (IDB), the UN Conference on Trade and Development (UNCTAD) and the UN Environment Programme (UNEP) Risoe Centre.
During the event, participants highlighted the high level of dynamism in the region with regard to the development and financing of activities to reduce greenhouse gas (GHG) emissions. They emphasized the importance of the European carbon market or EU Emissions Trade Scheme (EU-ETS), noting it currently represents about 95% of the demand for credits from the Clean Development Mechanism (CDM). Concerned that Phase 3 of the EU-ETS (2013-2020) will be decisive for guaranteeing the continuity of the carbon market, participants stressed the importance of guaranteeing market access during Phase 3. They also noted the need to remove a number of barriers to secure an adequate level of promotion of carbon mitigation projects. They also called for: specialized finance facilities; a greater level of understanding of carbon project management; and enhanced capacities for monitoring and verifying emission reductions.
To achieve a higher number of projects with a larger impact on sustainable development, the following measures were identified as key: strengthening financial institutions; establishing mechanisms to group small projects within larger strategic programmes that reduce transaction costs and guarantee long-term emission reductions; and promoting and increasing capacity for projects in key sectors such as energy, transport, tourism, waste management, agriculture and forests.
To establish the necessary framework and greater clarity for market perspectives in the post-2012 period, both within the UNFCCC and outside, the Forum also underlined the importance of concrete progress at the Cancun Climate Change Conference at the end of the year. [IDB Press Release] [Forum Website]