Press Release
October 30, 2023
- Global Environment
Results of Eighth Strategic Dialogue of the Carbon Market Platform
The Ministry of the Environment (MOE), Japan, hosted the Eighth Strategic Dialogue of the Carbon Market Platform in Tokyo on October 23 and 24, 2023, with the Federal Ministry for Economic Affairs and Climate Action, Germany, as the co-chair.
The Carbon Market Platform was established as a platform for a strategic dialogue on carbon markets based on the G7 Elmau Summit Leadersʼ Declaration of 2015.
At the Eighth Strategic Dialogue, active discussions were held on specific measures for enhancing the integrity of voluntary carbon markets and initiatives implemented by related countries/organizations and private sectors, etc. on the basis of the “Principles of High Integrity Carbon Markets” adopted at the G7 Ministers’ Meeting on Climate, Energy and Environment in Sapporo and endorsed at the Hiroshima Summit this year.
The Carbon Market Platform was established as a platform for a strategic dialogue on carbon markets based on the G7 Elmau Summit Leadersʼ Declaration of 2015.
At the Eighth Strategic Dialogue, active discussions were held on specific measures for enhancing the integrity of voluntary carbon markets and initiatives implemented by related countries/organizations and private sectors, etc. on the basis of the “Principles of High Integrity Carbon Markets” adopted at the G7 Ministers’ Meeting on Climate, Energy and Environment in Sapporo and endorsed at the Hiroshima Summit this year.
1. Regarding the Carbon Market Platform
The Carbon Market Platform was established as a platform for promoting a strategic dialogue on carbon markets based on the G7 Elmau Summit Leadersʼ Declaration of 2015. In 2016, Japan, as the G7 presidency at the time, hosted the First Strategic Dialogue in Tokyo, with Germany as the co-chair. Thereafter, the country holding the G7 presidency has hosted the dialogue in rotation.
2. Key points of the meeting
(1) The Eighth Strategic Dialogue of the Carbon Market Platform was hosted by MOE Japan, holding the G7 presidency, in Tokyo on October 23 and 24, 2023, with the Federal Ministry for Economic Affairs and Climate Action, Germany, as the co-chair. The meeting was attended by government officials of the G7 countries and countries interested in utilizing carbon markets, as well as people from private sectors and international organizations and research institutions related to voluntary carbon markets.
(2) At the meeting, case examples of initiatives were shared and opinions were exchanged concerning the following three agenda items on the basis of the “Principles of High Integrity Carbon Markets” adopted at the G7 Ministers’ Meeting on Climate, Energy and Environment in Sapporo and endorsed at the Hiroshima Summit: [1] market interplay and integrity; [2] enhancing integrity in voluntary carbon markets; and [3] enhancing Article 6 implementation and the ambition of NDCs.
[1] Session 1: Market interplay and integrity
Japan explained the background and outline of the “Principles of High Integrity Carbon Markets.” Then, the OECD provided an analysis on the interplay between voluntary carbon markets and compliance carbon markets led by governments and the United Nations. Participants pointed out the importance of ensuring the integrity of carbon credits and the need to encourage investments in high-integrity projects, among other matters.
[2] Session 2: Enhancing integrity in voluntary carbon markets
Information was shared on initiatives for enhancing integrity in carbon markets implemented by governments and private sectors in voluntary carbon markets from the respective perspectives of the demand side, supply side, and market side. Participants mentioned the need for further information disclosure to increase transparency and a mechanism therefor, as well as the institutional arrangements and procedures for carbon markets.
[3] Session 3: Enhancing Article 6 implementation and the ambition of NDCs
Information was shared on capacity-building support of countries and related organizations to use carbon markets and efforts to build domestic institutional arrangements, among other matters. Discussions were held on measures for promoting activities in accordance with Article 6 of the Paris Agreement toward enhancing the ambition of countries’ NDCs.
(2) At the meeting, case examples of initiatives were shared and opinions were exchanged concerning the following three agenda items on the basis of the “Principles of High Integrity Carbon Markets” adopted at the G7 Ministers’ Meeting on Climate, Energy and Environment in Sapporo and endorsed at the Hiroshima Summit: [1] market interplay and integrity; [2] enhancing integrity in voluntary carbon markets; and [3] enhancing Article 6 implementation and the ambition of NDCs.
[1] Session 1: Market interplay and integrity
Japan explained the background and outline of the “Principles of High Integrity Carbon Markets.” Then, the OECD provided an analysis on the interplay between voluntary carbon markets and compliance carbon markets led by governments and the United Nations. Participants pointed out the importance of ensuring the integrity of carbon credits and the need to encourage investments in high-integrity projects, among other matters.
[2] Session 2: Enhancing integrity in voluntary carbon markets
Information was shared on initiatives for enhancing integrity in carbon markets implemented by governments and private sectors in voluntary carbon markets from the respective perspectives of the demand side, supply side, and market side. Participants mentioned the need for further information disclosure to increase transparency and a mechanism therefor, as well as the institutional arrangements and procedures for carbon markets.
[3] Session 3: Enhancing Article 6 implementation and the ambition of NDCs
Information was shared on capacity-building support of countries and related organizations to use carbon markets and efforts to build domestic institutional arrangements, among other matters. Discussions were held on measures for promoting activities in accordance with Article 6 of the Paris Agreement toward enhancing the ambition of countries’ NDCs.