BOE’s Carney Launches Global Taskforce to Boost Voluntary Carbon

EM Staff, Compiled from press releases

We can’t get to zero net greenhouse-gas emissions without robust voluntary carbon markets, and the Bank of England’s Mark Carney has launched a global initiative to make that happen.

2 September 2020 | Canadian economist and former Bank of England Governor Mark Carney today launched a global taskforce to begin scaling Voluntary Carbon Markets, which are seen as key to accelerating the growth of carbon sinks and moving to net zero emissions.

The Taskforce on Scaling Voluntary Carbon Markets aims to grow markets at least fifteenfold and possibly much more.

In addition to Carney, who also serves as UN Special Envoy for Climate Action and Finance Advisor to UK Prime Minister Boris Johnson for COP26, the initiative is chaired by Bill Winters, Group Chief Executive, Standard Chartered and sponsored by the Institute of International Finance (IIF) under the leadership of IIF President and CEO, Tim Adams. Annette Nazareth, a partner at Davis Polk and former Commissioner of the U.S. Securities and Exchange Commission, will serve as Operating Lead for the Taskforce. McKinsey & Company will provide knowledge and advisory support.

“Companies and the investment community are increasingly focused on supporting the transition to a net zero economy and developing credible transition plans,” said Carney. “To achieve net zero, they will need to decarbonize and many will need to offset some emissions as part of the transition, creating a surge in demand for offsets.”

The goal is to harness the expertise of financial markets to build liquidity and increase transparency.

“Since the Paris Agreement was signed five years ago, one of the key elements to support its goals, an effective international carbon market, has been missing,” said Winters. “By scaling voluntary carbon markets and allowing a global price for carbon to emerge, companies will have the right tools and incentives to reduce emissions at least cost.”

In the coming months, the Taskforce will take stock of existing voluntary carbon markets and efforts to grow these markets, identify key challenges and impediments, build consensus on how best to scale up voluntary carbon markets and finally, present a blueprint of actionable solutions.

The Taskforce itself will be comprised of more than 40 leaders from six continents with backgrounds across the carbon market value chain. Participants bring expertise from the financial sector, market infrastructure providers, and buyers and suppliers of carbon offsets.

Voluntary carbon markets, a critical piece of emissions-reduction efforts world-wide, enable buyers to purchase credits that support emissions-reducing projects, thereby contributing to a smaller global emissions footprint overall.

Members of the Taskforce include: