Bloomberg Philanthropies, Three Cairns Group Establish Global Carbon Trust

Bloomberg Philanthropies, Three Cairns Group Establish Global Carbon Trust - Carbon Herald
Image: 3rdtimeluckystudio/Shutterstock

Bloomberg Philanthropies and Three Cairns Group will join forces to launch a Global Carbon Trust (GCT) to scale up the voluntary carbon market. The news was announced on the first day of the international climate summit COP27.

In addition to the Global Carbon Trust, the two companies will also establish the Carbon Storage Governing Council. The council will provide governance, increase the supply of projects, and boost standardized financial contracts to attract market participants.

Michael R. Bloomberg, Founder of Bloomberg Philanthropies, said an efficient voluntary carbon market plays a vital role in fighting climate change. “Turning climate commitments into smart investments that make a real difference requires transparency, accountability, and reliable data, all of which the Global Carbon Trust will help bring to carbon markets,” he said.

The voluntary carbon market needs to grow 15-fold to 1.5-2 gigatons of carbon credits annually by 2030 to keep up with climate targets, according to the Taskforce on Scaling Voluntary Carbon Markets.

And while progress has been made on improving the standards and qualities of CO2 credits, the voluntary carbon market still faces a lack of standardized contracts, long-term dependability on CO2 removal and storage projects, and well-capitalized intermediaries between sellers and buyers. 

Relevant: Bloomberg Philanthropies Allocates $2.8M For Biochar Project To Reduce Emissions

To address these concerns, the Global Carbon Trust will aim to offer an effective way of managing the liquidity and supply of CO2 credits.

“The voluntary carbon market will need greater rigor, data, transparency, ongoing measurement, and capital,” said Mark Gallogly, Co-founder of Three Cairns Group. “The mission of the GCT is to augment and improve existing carbon markets and enable the VCM to scale to its needed size.”

The Global Carbon Trust will address the need for term-limited fungible CO2 credits backed by enforceable contracts so that the voluntary carbon market can align financial incentives and climate action.

The new initiative will also create standardized CO2 credit contracts and include third-party monitoring and project performance verification. 

In addition, the trust will reduce barriers to entry to boost supply by supporting innovation in carbon removal technology. 

Read more: Voluntary Carbon Market Discusses Core Carbon Principles

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »
Total
0
Share