UNDP's Progressive Initiative at COP28 Aims to Transform Carbon Markets for Climate Justice
The United Nations Development Programme launched a new initiative at COP28 aimed at reshaping carbon markets to benefit developing countries and promote environmental and social integrity.
These schemes translate emissions into tradable carbon credits, each representing a ton of reduced, sequestered, or avoided carbon dioxide. Activities like curbing deforestation or harnessing methane gas for electricity generation can earn these credits.
The initiative responds to the urgent need to support developing countries in adopting low-carbon technologies and securing significant private capital—potentially in the billions—to bolster their climate action efforts. Despite their potential, carbon markets have faced controversy, including concerns over double counting of emission reductions, human rights violations, and greenwashing.
Carbon markets, whether compliance or voluntary, are trading schemes that incentivize activities reducing or eliminating greenhouse gas emissions.
UNDP Administrator Achim Steiner, said "Carbon markets can bridge the trillion-dollar gap needed for developing countries to fulfill their climate action pledges. However, they must not compromise climate impact, indigenous communities, or human rights. This initiative pioneers an approach emphasizing the integrity of carbon credit supply and equity for host countries, farmers, households, and rights-holders, including Indigenous Peoples, local communities, and women."
Cassie Flynn, UNDP Climate Hub Director, added, "Carbon markets can support environmental sustainability, human rights, and economic development, especially in communities most impacted by climate change. This can only happen if they align with the goals of the Paris Agreement. For this alignment, we need increased reliability and transparency."
The initiative aims to address both the demand and supply sides of carbon markets, focusing on generating high-quality carbon credits to level the playing field for host countries. The plan includes convening diverse stakeholders, providing technical assistance to governments, and operationalizing high integrity principles into decision-making processes for all types of carbon markets.
The initiative builds upon UNDP's existing partnerships, including the Carbon Payments for Development Facility, forest carbon portfolio, and collaborations with various organizations working towards sustainable climate solutions.
As the world grapples with the climate crisis, UNDP's progressive initiative marks a crucial step towards ensuring that carbon markets not only contribute to mitigating climate change but also uphold principles of justice and equity, addressing the concerns that have plagued these markets in the past.
