1. Panel Session Carbon trading beyond 2012: New approaches and emerging market Brief introductory remarks. Latin American Carbon Forum, Costa Rica, 27-29 September 2011 John Kilani, Director SDM, UNFCCC secretariat

2. 2 Absence of clear signals about demand The signals provided by Parties since Bali Continuation of the CDM, but with improvements Discussions on new market mechanisms The Cancun Agreement The strongest signal that countries have given so far Commitment to a maximum temperature rise of 2 degree, and a consideration of 1.5 degrees in the near future All developed countries have submitted emission reduction pledges and more than 40 developing countries have submitted their mitigation actions However, the signal is still not clear enough from the perspective of market players

3. 3 Some emerging trends, initiatives and proposals The work of the CDM EB on improvements of the CDM Negotiations under the AWG-KP Proposals on new market mechanisms under the AWG-LCA Emerging national and regional carbon markets Bilateral initiatives

4. 4 Looking into the future from the past There is no reason to believe that any new market mechanisms will find the going easier, unless of course they learn from what has gone before. No need to throw away the baby and the bath water

5. 5 Building on the experiences of the past 10 years A lot has been achieved Private capital has been mobilized Information on what works and what doesnt Market mechanisms that lack international oversight will have credibility challenges Fragmentation should not necessarily be seen as a bad thing. It signals a commitment by Parties from different fronts