Seoul, Republic of Korea, – On 27 October 2022 the Global Green Growth Institute’s (GGGI) Assembly and Council approved the establishment of GGGI’s Carbon Transaction Platform (CTP). The CTP will bring a comprehensive solution to the carbon space and will address major challenges in Article 6 market development as defined by the Paris Climate Agreement. Through CTP, GGGI will be able to extend its Article 6 work through both readiness support and the establishment of one or more (Internationally Transferred Mitigation Outcomes) ITMO-purchasing trust fund.
“Through our consultation process with Members and partner countries we noted that leveling the playing field for carbon transactions will be important,” Dr. Frank Rijsberman, GGGI’s Director General of GGGI noted. “GGGI envisions that CTP will provide equitable spaces at the table for all stakeholders, both sellers and buyers who are interested in ITMO transactions under Article 6,” Rijsberman added. Once implementation takes place the CTP will facilitate transactions between Member and partner governments by managing one or more carbon trust funds. Through the initiative GGGI will also scale up and expand knowledge exchange, technical assistance and capacity building around key issues related to Article 6 transactions through a readiness facility.
“Both buyers and sellers using the CTP will benefit,” Fenella Aouane, Deputy Director, and Head, Carbon Pricing Global Practice at GGGI said. “Sellers will be able to access crucial technical assistance such as support to craft an Article 6 Strategy and capacity building. They will also be able to gain access to multiple buyers to support transaction development, access information on terms and conditions of various buyers in the market, and build consensus on interpretation of rules,” Ms. Aouane added. “For buyers the platform will provide access to multiple sellers and a pipeline of mitigation activities at the same time as supporting with trade management through GGGI, reducing risks in contract implementation,” Ms. Aouane further explained.
GGGI is a leading provider of readiness support for its Member and Partner countries to participate in international carbon trading using Article 6 of the Paris Agreement. Following the Council approval GGGI will now start to establish the platform, working with its Members and Partners to detail its implementation plans and initial activities.
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