“The carbon market will have to be “mandatory and unique” to better contribute to achieving net zero.
The voluntary carbon market is only voluntary and a loophole for polluting and environmentally destructive firms.
The carbon bond market is not global, and an inefficiently obscure system. “
Towards a mandatory global carbon market
The carbon market must evolve if we are to achieve our goal of carbon neutrality. Voluntary carbon markets alone are not enough to force polluting companies to significantly reduce their emissions. In addition, existing mandatory carbon markets are fragmented and lack transparency.
The transition to a low-carbon economy requires fundamental change. Here’s why we need to move to a mandatory, global carbon market:
- Universal commitment: The transition to a single, mandatory carbon market means that all companies, large and small, must reduce their emissions. There are no loopholes, which encourages all companies to act.
- Global impact: Voluntary markets are fragmented. A single, mandatory carbon market harmonizes regulations and prices and encourages international cooperation, which is essential for tackling a global problem such as climate change.
- Standardization: A mandatory, global approach will standardize the rules of the game, making it easier for all stakeholders to participate. In addition, a unified system will significantly reduce the risk of tax arbitrage and other negative consequences for all stakeholders (countries, companies, communities, populations, individuals).
- Transparency and accountability: Voluntary markets can lack transparency and be prone to fraud. A single global market, backed by strict regulations and reinforced supervision, guarantees greater transparency and accountability. Increased oversight and stricter compliance will reduce fraud and abuse.
- Economies of scale: The costs of participating in voluntary markets are often prohibitive for smaller companies, limiting their ability to commit. A single global marketplace enables companies of all sizes to participate, giving them greater flexibility and better economic opportunities. In addition, such a market can encourage innovation and competitiveness, creating numerous opportunities for growth and development.
- Improving the environment: Like voluntary markets, a single global market can contribute to improving the environment. Participating companies could be encouraged to adopt more sustainable practices and reduce their carbon footprint, thus contributing to the fight against climate change. In addition, the unification of the global market and easier access to technology and information could promote environmentally-friendly practices.
- Stimulate innovation: By obliging companies to reduce their emissions, a mandatory global market stimulates innovation towards cleaner, more efficient solutions. This encourages the transition to a more sustainable economy, beneficial to all humankind.
- Equity and climate justice: Voluntary carbon markets can favor wealthy companies at the expense of vulnerable communities. A single, mandatory market reduces inequalities and ensures that climate responsibilities are shared fairly.
- Reduce inequalities: Unified markets can reduce regional disparities by improving local livelihoods.
By uniting behind a mandatory, global carbon market, we can accelerate the fight against climate change and move towards a cleaner, more sustainable future for all. Voluntary markets are insufficient to meet the climate emergency, and a single, mandatory market is the way forward for a sustainable future. Join us in this battle for the planet.
🌍🌱 #NetZero #ClimateChange #CarbonMarket #OneMarket
