The Carbon Market Institute was one of a group of 40 international companies, industry groups and non-governmental organisations that issued the Katowice Declaration on Sound Carbon Accounting at COP24 in Poland on Wednesday 5th December.
The declaration, led by the International Emissions Trading Association and the Environmental Defense Fund, is aimed at supporting sound accounting practices and the need to avoid double counting of emission reductions and ITMOs in carbon markets developed under Article 6 of the Paris Agreement. CMI is pleased to be part of this Declaration and support the strong role that the Australian Government is playing in prosecuting this important issue in these negotiations.
Formulating trading rules under the Paris Agreement involves numerous challenges, partly stemming from the voluntary nature of the agreement, which has seen great variations in the sectors that are included in individual nations’ targets. There are particular concerns around the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), set to start in 2021 and the International Civil Aviation Organization (ICAO) that is yet to agree on the types of carbon credits that will be eligible under the scheme.
“All markets benefit from strong accounting to build investor confidence, but in the world of the Paris Agreement the delivery of the environmental objective absolutely depends on it,” said Dirk Forrister, IETA’s CEO.
“The Paris rules on carbon accounting should support international market linkages that lower costs, spur technology deployment and preserve competitiveness. These are all imperatives for business to scale-up climate action,” Forrister added.
The Katowice Declaration thus states that “In this context, we, the undersigned, reiterate our commitment to environmental integrity, transparency and the avoidance of double counting of mitigation toward the achievement of the Paris Agreement temperature goals in all its forms. This includes the use of mitigation, whether transferred internationally for use by a country, or to an airline for use toward compliance under CORSIA.”
“The wide range of companies and groups united in calling for clear accounting and transparency rules sends a strong message to the Parties meeting in Katowice: the Paris Agreement rulebook must include safeguards to prevent double counting,” said Nathaniel Keohane, Senior Vice President for Climate at Environmental Defense Fund.