CAF will strengthen carbon markets in Latin America

The Latin American Development Bank (CAF) will strengthen the carbon markets of its member countries and will articulate the competitiveness of the supply of carbon credits, with the aim of reducing greenhouse gas emissions, mobilizing financial resources to face to global warming and respond “consistently and innovatively” to international demand, according to a statement.

Carbon markets consist of countries making transfers of emission reductions voluntarily or blindingly among themselves. Although they are not yet regulated, at the COP26 in Glasgow, the countries agreed to start activating the necessary mechanisms for their operation.

The objective of the Latin American and Caribbean Initiative for the Development of the Carbon Market (Ilacc) is to promote the global competitiveness of the supply of carbon credits generated in the region, strengthening the conditions for future voluntary and regulated markets and expanding their impact in the generation of employment, income, new technologies, green business clusters and the fight against poverty.

Among the immediate actions of Ilacc are the elaboration of a regional diagnosis on the carbon market, the start-up of the Ilacc Carbon Market Observatory, the formation of the Scientific Council and the creation of the Ilacc Regional Forum.

“The region has great climate potential, especially thanks to its unique capacity to offer nature-based solutions, which play a fundamental role in mitigating the effects of climate change”, said CAF’s Vice President of the Private Sector, Jorge Arbache.

In this sense, Arbache highlighted that the carbon market offers a historic opportunity for Latin America, which could be even more important than other boom cycles experienced by the region associated with agribusiness, mining and hydrocarbons.

K. Tovar

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Source: Atalayar