Citola Blog
Climate Change and the Carbon Markets
The overwhelming consensus amongst world leaders and the global scientific community is that climate change is accelerating as a direct result of human activity. The latest reports from the Intergovernmental Panel on Climate Change (IPCC) states that the world has six years to act on climate change or face unavoidable and catastrophic consequences.
World leaders, economies, investors and the general population are beginning to understand the importance of mitigating the effect of climate change and regulating the emission of greenhouse gases into the atmosphere. This has been emphasised by nations (such as the USA, China, India, Australian, UK, EU and others) directing policies towards global binding commitments to regulated carbon ‘caps’ and reductions. The focal point is the current climate conference in Copenhagen (COP 15) where the international community was hoping to decide binding climate policy beyond 2012. Though many directives appear headed for an uncertain conclusion, Forestry and REDD mechanisms appear to be one of the 'positive' outcomes that we can expect from COP15.
Regardless of personal belief there is almost unanimous acknowledgement that economies need to adapt and become “low carbon”, reducing our dependence on fossil fuels. The carbon market provides the mechanism for this change by incentivising clean and sustainable development and technology and effectively establishing a cost on pollution.
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