A well-structured and high-integrity carbon market has the potential to mobilize essential financing for climate action, especially in developing countries. Achieving scale will require secure, efficient, and interoperable infrastructure that fosters the growth and reliability of these markets. This Roadmap for a Safe, Efficient, and Interoperable Carbon Market Infrastructure 2024 outlines critical bottlenecks and priority action areas identified by the Carbon Market Infrastructure Working Group (CMI WG). This includes clarifying ecosystem governance, documenting current standards and market practices related to information security and transaction integrity, and enhancing data and systems interoperability.
Authors
- Disclosure Date
- 2024/11/08
- Disclosure Status
- Disclosed
- Doc Name
- A Roadmap for Safe, Efficient, and Interoperable Carbon Markets Infrastructure
- Pages
- 31
- Published in
- United States of America
- Unit Owning
- Planet -CCG-Finance Mobilization (SCCFM)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- Table of Contents 3
- Foreword 3
- Executive summary 3
- Carbon Markets Infrastructure Working Group 3
- Information security and transaction integrity 3
- Conclusion 3
- List of Figures 4
- List of Tables 4
- Abbreviations and acronyms 5
- Foreword 6
- Executive summary 7
- Carbon Markets Infrastructure Working Group 8
- Objectives and members 8
- Scope of work 9
- CMI WG discussions and contributions draw on key guidelines and standards such as those developed by ICVCM IOSCO CFTC and IIF. 9
- Outputs and outcomes 12
- The CMI WG seeks to offer practical actionable guidance to accelerate progress in building a reliable high-impact carbon market infrastructure capable of delivering meaningful climate outcomes. 12
- Priority area I Ecosystem governance 13
- Scope 13
- Clustering Functionalities and Entities 14
- Mapping Functionalities Pre-Issuance to Entities 15
- Mapping Functionalities Post-Issuance to Entities 16
- State of play 17
- The ecosystem mapping effort by the CMI WG takes a step further offering a more granular and comprehensive scope by delving into detailed entities and functionalities with laid- down definitions. 17
- Roles and responsibilities within carbon market infrastructure often overlap significantly among entities leading to potential inefficiencies and blurred lines of accountability 18
- Way forward 19
- Building on the framework established in the preliminary ecosystem mapping the guidance note will present a diagnostic assessment identifying potential overlaps gaps and conflicts of interest. 19
- Priority area II Information security and transaction integrity 20
- Scope 20
- As with any nascent market carbon markets depend on robust information security and transaction integrity to build trust ensure reliability and establish credibility. 21
- State of play 22
- Way forward 24
- The CMI WGs guidance note will deliver guidance on implementing robust safeguards for information security and transaction integrity. 24
- Priority area III Interoperability of data and systems 25
- Scope 25
- State of play 26
- Carbon markets currently face significant data fragmentation with inconsistencies across data sources registries and reporting standards. 27
- Way forward 28
- Conclusion 29
- The objective is to accelerate progress in developing a reliable high-impact carbon markets infrastructure that delivers meaningful climate outcomes. 29
- Endnotes 30
