15 November 2013
Discussions on forests reached a peak in Durban (COP17, 2011) and stagnated in Doha (COP18, 2012) but saw remarkable progress in Bonn in June this year. Here is our assessment of how forests are likely to fare over the next two weeks at COP19 in Warsaw.
1. Finance and markets: Key to the 2020 climate treaty
Why: Many countries are already trying to mitigate climate change through various approaches and many of these approaches rely on market mechanisms – e.g., the European Union has a trading system for emissions reduction units and the USA (California) has developed a cap-and-trade system – but each market uses a different currency and converting between these currencies is difficult. Thus, units are not easily traded between the different systems. This is partly the reason for the sluggish development of a global carbon market and the low interest of investors. In addition, the UNFCCC is considering creating new market mechanisms for different sectors, so the problem is likely to lead to greater inefficiency unless countries find a way to connect these different mechanisms.
Read more from Forests Climate Change here.