International Climate Initiative supports sustainable carbon markets

Between 26 and 28 May, Cologne will be buzzing with talk of emissions trading and climate protection. The German Environment Ministry (BMU) and German Emissions Trading Authority (DEHSt) will once again set out the German stall at Carbon Expo, the Global Carbon Market Fair and Conference. International Climate Initiative (ICI) projects will be among the material showcased there. Through the ICI, BMU has supported the creation of sustainable carbon markets since 2008. Fourteen such projects have now been launched, with total funding of over 12 million euros. 

The ICI projects take a variety of approaches. Some develop and test national and/or regional carbon markets and emissions trading systems. Thus the ICI aims to mobilise financial markets and private investment for climate change mitigation. Other projects serve to develop quality standards in the carbon market, and especially innovative project approaches.

Visitors to Carbon Expo will gain insights into three specific projects:

  • BMU is working with the United Nations Environment Programme (UNEP) in southern Africa on a newly-created facility to promote investment in Africa’s carbon market. It provides small-scale financial assistance to offset the very high initial transaction costs and to help projects reach the validation stage. Support focuses in particular on innovative transactions which are adapted to the prevailing conditions in sub-Saharan Africa and have significant potential for duplication and expansion.
  • BMU is also helping the Gold Standard Foundation overcome the obstacles to trading Gold Standard Certificates under the Clean Development Mechanism (CDM). A network of local experts has been established so stakeholders can share experiences and further their understanding of Gold Standard strategy and local implementation capacity.
  • As part of a pilot project in Burkina Faso, which will be registered as a CDM Gold Standard project, BMU assistance has enabled atmosfair gGmbH to build small biomass facilities. The facilities use material such as leftovers from the millet and cotton harvests. This biomass is converted into gas, which is in turn used to produce electricity.

BMU will continue to provide strong incentives for the development of the global carbon market through the ICI.