GGGI’s Carbon Pricing Global Practice supports the organization’s Member and Partner countries to set a price for carbon and access carbon finance. It plays an increasingly important role in delivering GGGI’s strategic outcomes, primarily by unlocking international carbon finance to increase ambition, above and beyond countries’ climate commitments under the Paris Agreement, but also by building knowledge and awareness on the mitigation potential of well-designed carbon pricing policies. It provides key services in carbon pricing policy design, development of regulatory frameworks and institutional capacity, design and structuring of transactions, and thought leadership. This work builds on GGGI’s strong track record in related issues such as the mobilization of over USD 270 million in results-based payments from the Forest Carbon Partnership and the Green Climate Fund through the design of emission reductions programs in Indonesia.
International carbon finance has the potential to become the dominant form of finance for climate action since it is transactional in nature, can involve the private sector in countries’ climate ambitions, and is only restricted by supply/demand dynamics associated with the mitigation outcomes. GGGI’s Carbon Pricing Global Practice is a leading actor in global piloting of international carbon transactions under Article 6 of the Paris Agreement. It is currently running programs funded by the Swedish Energy Agency and Norwegian Ministry of Climate and Environment to complete such transactions, which would be among the first in the world. Both programs are providing technical assistance to GGGI Member and Partner Governments to put in place the required capabilities for engaging in such carbon transactions on an ongoing basis. Further programs are being developed with the German government (under the IKI) and the Swiss (through the KliK Foundation). It is also collaborating with leading organizations in the field such as the World Bank, UNEP-DTU, Perspectives Climate Group, Carbon Limits and Pollination Group, to advance global thinking.