Collaboration will help countries most vulnerable to the impacts of climate change participate in, and benefit from, high-integrity voluntary carbon markets
13 June 2024, London – The Voluntary Carbon Market Integrity Initiative (VCMI) signed a partnership agreement today with the Climate Vulnerable Forum and its V20 Finance Ministers (CVF-V20) to enable carbon finance opportunities for CVF-V20 member states through high-integrity carbon market mechanisms.
VCMI and CVF-V20 have agreed to work together to integrate high-integrity voluntary carbon markets to support and expand access to financing for the Climate Prosperity Plans of CVF-V20 member countries. Climate Prosperity Plans are country-wide investment plans that aim to boost economic growth and development, while reducing greenhouse gas emissions. The initiative is expected to direct carbon finance where it is most needed and accelerate implementation of the Paris Agreement and the realization of Sustainable Development Goals (SDGs).
The CVF-V20’s 68 member countries are home to 1.74 billion people, representing over 20% of the global population yet contributing to just 5% of global emissions. The G20 recently declared emerging markets and developing economies need $3 trillion1 by 2030 to transition to low-carbon, equitable and resilient economies that also enjoy rapid economic growth. Voluntary carbon market finance could unlock $50 billion by 20302, providing valuable new funding to low and middle-income countries to implement climate solutions, support local stewards of nature and biodiversity hotspots – including Indigenous groups, who preserve 80%3 of the world’s biodiversity – and positively impact local communities.
This collaboration seeks to identify capacity gaps preventing CVF-V20 countries from accessing high-integrity carbon markets. Gaps will be addressed through the VCMI’s Access Strategies Programme, which provides guidance to governments wishing to implement high-integrity voluntary carbon markets (VCMs) in ways that contribute to climate mitigation commitments and maximize socioeconomic prosperity.
The objectives of the partnership include:
- Lowering the cost of capital for low-carbon and resilience-building projects by utilizing carbon financing to ensure the weighted average of the cost of capital is lower than the medium-term growth rate;
- Enhancing CVF-V20 members’ capacities to deliver on key climate action priorities via participation in international carbon markets;
- Developing appropriate carbon finance strategies in support of diverse Climate Prosperity Plans;
- Enabling high-integrity and fair carbon finance flows to CVF-V20 member countries to contribute to national policy priorities and climate targets; and
- Sharing knowledge and best practices to maximize the impact of carbon finance activities in CVF-V20 member countries.
If climate finance is to flow where it is needed most, countries and companies in developing economies will need help accessing the carbon market. This partnership will support this transition and ensure the countries most vulnerable to climate change receive the social, environmental, and economic benefits of high-integrity carbon markets.
H.E. Mohammed Amin Adam, Minister for Finance of Ghana and V20 Chair said: “To achieve climate prosperity in the 68 CVF-V20 member states, our efforts are focused on developing and implementing Climate Prosperity Plans (CPPs). The financial needs for these plans, endorsed by national governments in Sri Lanka, Bangladesh, and Ghana, range from US$27 billion to US$90 billion through to 2030. Carbon finance is a crucial part of the strategy for realizing these investment pipelines. Today’s partnership with the VCMI is a pivotal step in unlocking the potential of carbon finance. By addressing constraints through VCMI’s technical support, we are equipping our member states with the necessary expertise and access to engage in carbon transactions effectively, thus supporting our CPPs and driving sustainable economic growth.”
H.E. Mohamed Nasheed, Secretary-General of the Climate Vulnerable Forum, former President of Maldives, founding Presidency of CVF said: “As a former president, I have witnessed firsthand the transformative power of strategic financial planning in driving national development. The CPPs are a testament to our collective commitment to achieving climate prosperity. It is imperative we uphold the integrity of our efforts and ensure our actions to limit global warming to 1.5°C are aligned. High-integrity carbon financing is essential to secure necessary concessional capital support and ensure impact and transparency in our climate actions. A prosperous and sustainable future for all is within reach when we use everything in the toolbox.”
Ms. Rachel Kyte, Founding Co-Chair of VCMI said: “VCMI’s partnership with the CVF-V20 will ensure that their members can grow their revenue from high-integrity voluntary carbon markets to support their climate prosperity. We know that investment in emerging markets and developing economies must increase dramatically to build resilience and prosperity especially for those countries most vulnerable to climate impacts. High-integrity voluntary carbon markets can target timely investment where it is most needed, sustainably.”
NOTES FOR EDITORS:
About VCMI
The Voluntary Carbon Markets Integrity Initiative (VCMI) is the issuing body behind the ‘Carbon Integrity’ mark. It is an international non-profit organization with a mission to enable high-integrity voluntary carbon markets (VCMs) that deliver real and additional benefits to the atmosphere, help protect nature, and accelerate the transition to ambitious, economy-wide climate policies and regulation.
www.vcmintegrity.org
About the CVF and V20
The Climate Vulnerable Forum (CVF), founded in 2009, is an independent intergovernmental organization most threatened by climate change, headquartered in Accra, Ghana. The V20 Finance Ministers, founded in 2015, is a major body of the CVF which operates as a dedicated international collaboration of ministers of finance (or, for some, economic planning ministries) working to tackle climate change by mobilizing and realizing economic and development strategies and programs while leveraging public and private finance for an enhanced response to climate change. The CVF-V20 is currently chaired by Ghana and is composed of 68 member countries from Africa, Asia, the Caribbean, Latin America, Middle East and the Pacific, who together represent 1.74 billion people. Their members are:
Africa: Benin, Burkina Faso, Chad, Comoros, Côte d’Ivoire, Democratic Republic of the Congo, Eswatini, Ethiopia, The Gambia, Ghana (Chair), Guinea, Kenya, Liberia, Madagascar, Malawi, Morocco, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda
Asia: Afghanistan, Bangladesh, Bhutan, Cambodia, Kyrgyzstan, Maldives, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Timor-Leste, Vietnam
Caribbean: Barbados, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Saint Lucia, Trinidad and Tobago
Latin America: Colombia, Costa Rica, Guatemala, Honduras, Nicaragua, Paraguay
Middle East: Jordan*, Lebanon, Palestine**, Yemen
Pacific: Fiji, Kiribati, Marshall Islands, Palau, Papua New Guinea, Samoa, Tonga, Tuvalu, Vanuatu
*Formalization pending further discussions
**As a UN non-member observer state
CONTACTS:
For the latest updates, please follow us on the following:
- CVF and V20 X at: @TheCVF, @V20Group
- VCMI X at: @wearevcmi
For media enquiries, please contact the following:
- CVF-V20: Paul Roberts at [email protected] or (WhatsApp +960 7654337)
- VCMI: [email protected]
1Independent Expert Group, 2023.
2World Economic Forum, 2023.
3World Bank, 2008
