Lesson 1, Topic 1
Challenges in the Carbon Markets
Despite of the tremendous evolution of carbon markets during the past decade, there are still important challenges that need to be addressed to ensure the credibility of the market:
- Setting the right price for carbon: Prices tend to fluctuate according to the market. However, not reaching a correct price may result into less interest from buyers, investors and project developers.
- Ensuring the integrity of carbon credits: By guaranteeing credible emissions reductions through a transparent and robust process.
- Balancing the need for flexibility with environmental integrity.
- Addressing the issue of additionality: Proving additionality is still complicated in some cases.
- Urge board participation: Promoting alignment with the National Determined Contributions (NDC).
- Need of adequate social and environmental safeguards.
- Credibility of the market: Reducing false claims and misleading marketing strategies.