Summary

The session focused on the vital role of high integrity carbon markets in achieving net zero by 2050. The first speaker provided an overview of the international carbon markets, emphasising the significant growth in compliance markets, which currently cover 23% of global emissions, with a goal to expand this coverage to 60% by 2030. The speaker highlighted the potential of voluntary carbon markets to channel investment into developing countries, thereby enhancing global climate efforts. The second speaker discussed the challenges and opportunities in finalising the technical aspects of Article 6 of the Paris Agreement, stressing the importance of international cooperation in operationalising Article 6, which has the potential to promote ambitious climate actions, particularly in developing countries. The urgency of concluding these technical discussions to reach a political agreement at COP29 was emphasised, as this will facilitate the implementation of market mechanisms essential for global climate goals. The third speaker addressed the necessity of transparency and robust standards within carbon markets, focusing on the role of clear and consistent standards, such as those outlined by the G7 principles, in maintaining market integrity. The importance of aligning voluntary and compliance markets to maximise their impact on emissions reductions was also highlighted. The fourth speaker presented a case study on the integration of Article 6 principles into a national crediting mechanism, including a pilot project deploying electric buses to reduce air pollution, illustrating the practical environmental benefits that can be achieved through well-designed carbon market initiatives. The fifth speaker elaborated on the establishment of Core Carbon Principles (CCPs) to certify high-quality carbon credits, underscoring the importance of these principles in ensuring market integrity and transparency, which are critical for building trust among stakeholders and attracting investment, particularly in developing countries. The sixth speaker focused on the demand side of voluntary carbon markets, introducing the Claims Code of Practice, which provides a standardised approach for companies to make credible carbon credit claims, ensuring that corporate actions align with broader environmental goals. The session highlighted the importance of this code in facilitating the transition to compliance markets. The seventh speaker discussed the current situation where Japanese private companies are leveraging domestic J-Credits, emphasising a self-help approach towards achieving carbon neutrality rather than relying solely on credits. The speaker stressed the importance of improving the quality of these efforts by adopting and utilising international standards set by ICVCM and VCMI. It was highlighted that while the goal of carbon neutrality is universal, each company has unique characteristics and needs a tailored narrative. The speaker underscored the necessity of enhancing the reputation of corporate activities through highly transparent disclosures, advocating for openness even when there is a risk of greenwashing accusations. The moderator guided the session, concluding with a call for harmonised approaches between voluntary and compliance markets. The session emphasised the critical role of private sector engagement and the necessity of transparent standards and policies to ensure the effectiveness and integrity of carbon markets.