Markets Have ‘Deep Roots’ in UN Climate Process, IETA Says

Market mechanisms such as the European Union’s emissions-trading system still have “deep roots” in the United Nations climate talks after negotiators failed to adopt major decisions this year, the head of a trading lobby said.

Envoys from more than 190 countries backed some measures to improve the UN’s carbon offset market, the Clean Development Mechanism, at last week’s climate summit in Warsaw. They postponed a mandated review until June and failed to agree on a framework for linking national systems. While decisions on long-term measures were put back, the commitment to have markets at the core of the future agreement is strong, according to Dirk Forrister, the chief executive officer of the International Emissions Trading Association, a market lobby.