DAI Publishes Carbon Markets Report

December 03, 2024

DAI, in collaboration with FT Longitude, has published a report exploring what is required to establish robust, transparent, and credible voluntary carbon market systems capable of attracting international finance. Unlocking the Potential of Carbon Markets highlights success stories from developing countries—including Colombia, Ghana, Bhutan, and Thailand—and showcases actionable strategies for implementation.

The report features contributions from leading experts from organizations such as the Voluntary Carbon Markets Integrity Initiative, the U.S. Agency for International Development, BBVA, The World Bank, and Climate Focus.

Carbon markets were a focal point of discussions at COP29 in Baku, Azerbaijan. With potential revenues up to $30 billion by 2030, these markets are poised to play a pivotal role in funding national climate action plans.

“In the developing world, carbon markets have great potential to drive sustainable development, attract investment, and address climate change,” said Jette Findsen, DAI’s Vice President of Environment and Energy. “Unlocking this potential will require coordinated efforts from governments and development partners.”

Christy Owen, Senior Lead Specialist, Climate, Land and Natural Resources, emphasized the importance of learning from existing successes. “Notable progress was made on Article 6 during COP29, particularly in clarifying how countries authorize carbon credit trading and operate registries to track trades. However, there is still significant work ahead to build a high-integrity, transparent marketplace that delivers equitable benefits to all stakeholders.”

Working with governments, the private sector, and aid agencies, DAI supports carbon market development globally, including in Vietnam, aiding the Ministry of Agriculture in drafting forest carbon standards; in Pakistan, helping establish a legal framework for voluntary markets; and in Ghana, partnering with the Environmental Protection Agency to operationalize its carbon market framework.