Antalya:A new global network is set to be launched at the UN climate summit COP31 on November 12 in Antalya, Türkiye. This initiative aims to address the fragmentation in carbon markets and direct more investment into climate projects, especially in developing countries.
According to Emirates News Agency, the Global Carbon Market Network, convened by UN Trade and Development (UNCTAD), seeks to strengthen the connections between carbon and capital markets. It will focus on improving transparency and credibility while facilitating cross-border transactions.
Carbon markets currently face challenges due to fragmentation across different standards, registries, and trading systems. Issues related to credit quality, transparency, and double counting have undermined confidence and hindered market development, particularly affecting developing economies.
Ahead of the official launch, UNCTAD Acting Secretary-General Pedro Manuel Moreno expressed optimism that the network would enhance the effectiveness of carbon pricing as a tool for reducing emissions and mobilizing climate finance for developing countries.
'Carbon markets can play a role in putting a price on emissions and mobilizing finance for climate action, but their effectiveness depends on trust, integrity, and functioning market infrastructure,' stated Nan Li Collins, UNCTAD's Director of Investment and Enterprise and Chair of the UN Sustainable Stock Exchanges Initiative.
The network will advocate for cooperation among exchanges and market institutions. It will also focus on technical aspects related to market integrity, measuring and verifying emissions reductions, and leveraging digital technologies to enhance transparency and reduce transaction costs.
