The Carbon Market Institute (CMI) has released its key priorities for negotiators and Australian climate leaders at COP28, calling on governments to use the concerning recent Global Stocktake Synthesis (GST) report and carbon markets reforms as an investment ‘accelerator’ that can recalibrate action towards Paris Agreement goals.
Released in September as a key input to COP28 decision making, the GST report found that despite the Paris agreement supporting collective progress towards limiting global warming, “much more is needed” in order to get close to a 1.5 degree Celsius pathway supported by Australia.
CMI CEO John Connor said the first-ever Global Stocktake at COP28 must be a defining moment in recognising the need for greater global investment and cooperation by delivering a roadmap of actions and solutions to accelerate the transition and bridge the gap:
“COP again takes place in challenging geopolitical conditions but must be the catalyst for frank assessment and a course correction following the concerning Global Stocktake report. Without further individual and collective international action, this first of five yearly global stocktakes could be the last with credible pathways to keep the 1.5C goal alive.”
“In mapping out a pathway forward, we must harness the trillions of capital capable of changing the tide, and this means supporting investable climate solutions. COP28 has opportunities to boost global cooperation and carbon market development by finalising outstanding issues under what is known as Article 6 of the Paris Agreement.”
“Australia can also assist by strengthening the Safeguard Mechanism over time, implementing sector-specific net zero plans and also collaborating with our Pacific neighbours to build capacity and carbon project investment under a revamped Indo Pacific Carbon Offset Scheme.”
CMI welcomed the government’s progress to date, expected to be detailed further in Thursday’s annual climate statement, and said there was a significant opportunity for Australia to do its own part in bridging the gap and aligning its targets with Paris goals.
“We welcome last week’s Capacity Investment Scheme announcement as a sizeable new commitment in progressing towards Australia’s 2030 targets, alongside other key developments such as the new Net Zero Economy Agency and a number of other reforms due for 2024.”
“Each of these processes should recognise the potential contributions of tools like carbon markets in harnessing investment and accelerating action. The Global Stocktake’s findings should also help to inform the development of stronger 2030 and 2035 targets, as well as specific sectoral plans for net zero by 2050 due by the end of next year.”
“Without deepening and broadening Australia’s climate policy suite, we will continue to fall short of alignment with Paris goals. While the annual climate statement is likely to include projections that the enhanced 2030 target of 43% emissions reductions is in reach, recent research from Climateworks, for example, suggests our 2030 target should be 48 – 61% to better align with Australia’s ‘fair share’ of global efforts,” he said.
For a more detailed overview of CMI’s key asks from both an international and domestic point of view, access our COP28 Priorities & Calls to Action paper here.
CMI’s latest Policy Positions statement is available here.
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a member-based institute accelerating the transition towards a negative emissions, nature positive world. It champions best practice in carbon markets and climate policy, and its 150+ members include primary producers, carbon project developers, Indigenous organisations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries. The positions put forward constitute CMI’s independent view and do not purport to represent any CMI individual, member company, or industry sector.