Greenhouse Gas Markets, Compliance and Voluntary Markets
International, Regional and National Carbon Markets
Nascent Markets in Sustainable Development Benefits
4Climate’s staff has over 17 years of experience in greenhouse gas markets and has facilitated, structured and monitored carbon transactions in greenhouse gas reductions for a number of clients with a combined value over 120 million EUR. 4Climate covers the following markets:
Clean Development (CDM) and Joint Implementation transactions under the UNFCCC Kyoto Protocol (until 2020):
Assisted the Luxembourg Government in the management of their carbon purchase programme for compliance with the Kyoto Protocol, 2006–2015.
Article 6 transactions under the UNFCCC Paris Agreement: Sustainable Development Mechanism, Trading in Internationally Transferable Mitigation Outcomes (ITMOs). Art. 6 transactions are not yet taking place as the modalities and procedures are still in preparation by UNFCCC, expected in late 2018.
4Climate successfully worked on robust Green Investment Schemes (GIS) using trading mechanism of the Kyoto Protocol to channel investments in housing energy efficiency. Future ITMOs trades are expected to show similarities with such GIS structures and 4Climate can leverage its experience.
EU Effort Sharing Regulation and related trades in Annual Emission Allocations (AEA) through green investment schemes or project type mechanisms. To date the demand in the AEAs is very low and nearly no trades are taking place.
Developed compliance strategies focusing on the flexible and emission trading mechanisms under the regulation.
Voluntary markets in GHG offsets. These markets are still showing good demand but supply constraints are expected in 2020 with the start of the Paris Agreement. Verifiers are starting to offer certified statements of emission reductions or climate contribution units as alternatives.
4Climate is following greenhouse gas markets in the European Union (EU ETS), California, China, South Korea, Japan, Mexico, South Africa.