2. Climate markets. RBCF and other climate finance
International
carbon
market
Today
Article 6.4
Article 6.2
ETS
linking
Climate markets. RBCF and other climate finance
International Aviation (CORSIA) and Maritime
Policy crediting,
Programmatic crediting,
REDD+
demand only
supply only
demand
and supply
indirect
direct

3. Environmental integrity Transparency Recognise ambition Inclusiveness
Market integrity
Environmental integrity
Transparency
Recognise ambition
Inclusiveness
Cost-effectiveness
The METRIC principles would to provide policymakers, the private sector and other stakeholders to understand different options that might be available for linking and provide a framework to help assess their suitability
Reason for inclusion:
Market Integrity: The integrity of linked carbon markets is essential for ensuring that capital is allocated efficiently and to avoid disturbing the functioning of carbon and related markets.
Environmental integrity: needed for carbon markets to truly “cap” emissions and preserve emissions reductions, also under NDC accounting
Transparency: to ensure buy-in from all stakeholders and to be able to determine differences between schemes, mitigation values and other factors
Recognised ambition: to avoid pitfalls and current challenges
Inclusiveness: to not inhibit others from joining and creating a global carbon market in the long run
Cost effective: to ensure cost savings are not offset by other costs, and to foster economic efficiency
Potential applications:
Market Integrity: Design of price management systems (min, max, prices) ; regulatory and legislative oversight of ETS and other areas, particularly energy policies, that could interfere with the link
Environmental integrity: MRV processes, accounting,
Transparency: Public documentation and rules, open participation
Recognised ambition: In how far cost differences reflect ambition, whether resource transfers are politically feasible
Inclusiveness: Minimum standards that are the same throughout, possibly with some additions to account for the specific arrangement
Cost effective: central registry, clear rules of exchange