Contact: Katie Kouchakji, press@ieta.org

LONDON, 25 November – Governments need to ensure a new international climate change agreement is reached at the Paris climate talks – and that it includes a role for market-based mechanisms, IETA says today.

Ahead of the start of the two-week meeting in the French capital on Monday, the business group is calling on negotiators to ensure market mechanisms will feature in the future agreement. Specifically, IETA is asking for: provisions to encourage countries to cooperate in meeting their mitigation commitments by enabling system linkages; rules to account for international emissions reduction unit transfers; and tools to accelerate links between carbon pricing systems, such as a central project crediting mechanism.
 
Last month, IETA along with 20 other business groups – representing more than 100,000 businesses from around the world – sent a letter to more than 90 governments and UN climate chief Christiana Figueres, highlighting the importance of carbon markets to the future agreement. It also called for the three elements outlined above.
 
“As more than 80 countries mention the use of market mechanisms in their pledges for the Paris agreement, there must be provisions for their use,” says Dirk Forrister, IETA’s CEO and President. “Market mechanisms, and particularly linked carbon markets, allow emissions reductions to occur faster and cheaper than operating in isolation. These three ‘asks’ would go a long way to making this happen.
 
“With the right policy framework emerging from Paris, the next wave of carbon market activity could flourish,” he adds. “Business has been consistent on the need for clear policy signals from Paris to mobilise capital to fight climate change.”
 
Following October’s negotiations in Bonn, Germany, the latest draft negotiating text contains a more robust section on climate change mitigation, including provisions on markets. However, IETA is concerned that these proposals remain in brackets, meaning they could still be deleted in Paris.
 
“The new text is a good springboard to work from in Paris – but we need to start seeing some positive signals on the future of markets,” says Jeff Swartz, IETA’s Director of International Policy. “If governments are serious about meeting the 2°C target, all options need to be available, including markets.”
 
IETA will have a team on the ground for the duration of the Paris meeting, covering market mechanisms, REDD+, climate finance and the overarching deal. Please contact Katie Kouchakji on kouchakji@ieta.org for any enquiries.
 
We will also be running a series of events in the IETA/WBCSD Pavilion, located in Hall 3, including daily media briefings at 10.30am CET. Please see our dedicated COP 21 website for more information.