A high-level advisory group to the United Nations, the Advisory Group on Climate Change Finance (AGF) will outline its draft proposals this week for financing efforts to combat global climate change. Carbon markets are expected to be central to their recommendations. But carbon market prices would likely be too volatile to provide a reliable source of finance. IATP's Steve Suppan warns that carbon markets are vulnerable to excessive speculation by big financial firms through lobbying governments to both scale up the trading of carbon and promoting regulatory exemptions.
Other options should be considered. "Agriculture, particularly in developing countries, is the sector most vulnerable to the effects of climate change and badly needs transpartent and predictable climate finance.A transition toward a more sustainable practices will make agriculture, and the livelihoods dependent on it, more resilient to climate change, reduce greenhouse gas emissions and strengthen global food security. We need to consider alternative climate finance proposals to make this happen" said IATP President Jim Harkness.
IATP President Jim Harkness and Senior Program Officer Shefali Sharma are in Tianjin, China this week monitoring the ongoing global climate talks that will serve as the final prelude to COP16 in Cancún later this year.
In a side event held today, entitled “Carbon markets: A reliable and practical source of climate finance?” IATP hosted a panel to discuss public finance mechanisms, market and environmental integrity in carbon trading, and consequences for sustainable agriculture. A press conference will be held on Thursday.
IATP's Senior Policy Analyst Steve Suppan has also written a new paper addressing the U.N. Secretary-General's High-Level Advisory Group on Climate Finance (AGF), entitled "Trusting in Dark (Carbon) Markets?" Read the press release below: