The Finance for Biodiversity (F4B) initiative has published a new governance model for carbon offset markets that builds on three principles to ensure the market “grows rapidly, adheres to standards, and helps the global economy move toward net zero”. The three principles are: whole-system governance (connecting every level within the carbon value chain and external market ecosystems), complete transparency, and ascertaining inclusive participation from Indigenous and frontline community members at offset project sites. F4B’s paper also outlines how new technologies – like satellite-based geospatial imaging and blockchain – have reduced the costs of large-scale information collection and stakeholder participation in carbon markets.
📢 New paper: ‘Governing Carbon Markets’
Transparency and stakeholder accountability are required in carbon markets governance.
Today’s release highlights three design principles that should shape such governance.
— Finance for Biodiversity (@F4BInitiative) April 26, 2022
Simon Zadek, F4B Chair, said: “The successful scaling up of carbon markets has thus far been stymied by a crippling lack of trust and integrity in the system. But getting this governance model right goes far beyond just carbon markets. Our proposed design provides a template that could be used across nature markets more broadly, and could pave the way towards using market mechanisms to achieve non-financial goals, such as mitigating climate change and reversing biodiversity loss.”