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Multilateral development banks to focus on creating carbon markets - ADB

Economy Materials 14 November 2024 10:53 (UTC +04:00)
Multilateral development banks to focus on creating carbon markets - ADB
Alyona Pavlenko
Alyona Pavlenko
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BAKU, Azerbaijan, November 14. The multilateral development banks (MDBs) will focus on creating highly integrated carbon markets in 2024-2025, the President of the Asian Development Bank (ADB) Masatsugu Asakawa said during a roundtable discussion on "Driving Transformative Climate Action: Shifting the Focus from Financial Inputs to Impact and MDBs' Catalytic Effect” at COP29, Trend reports.

“As MDBs, we are united in our commitment to the Paris Agreement and our mission to achieve transformative climate action. As the current Chair of the MDBs Climate Action Group, I want to emphasize our collective efforts under the so-called Article 6 Working Group.

According to him, this platform brings together the MDBs to help countries develop and implement carbon market mechanisms and non-market approaches under Article 6 of the Paris Agreement.

“Our cooperation allows countries to use Article 6 as a powerful tool to raise climate ambition, increase investment, and promote sustainable development. In 2024 and 2025, we will focus on three critical areas: building capacity, developing enabling infrastructures for effective implementation, and co-creating highly integrated carbon markets,” he said.
Asakawa noted that the MDBs are also exploring non-market approaches, especially those that promote adaptation and address complex, hard-to-measure impacts.

To note, the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) started in Baku on November 11. The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference in the climate system.

A total of 198 countries are Parties to the Convention. Unless the parties decide otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.

The main expectation from COP29 is to agree on a fair and ambitious New Collective Quantitative Goal (NCQG) on climate finance. The COP29 chairmanship has launched 14 initiatives that include linkages between climate action and the Sustainable Development Goals, including green energy corridors, green energy storage, harmony for climate resilience, clean hydrogen, methane reduction in organic waste, action on green digital technologies, and other topics.

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