Complexity In Carbon Markets To Take Center Stage At This Year’s European Climate Summit

Complexity In Carbon Markets To Take Center Stage At This Year's European Climate Conference - Carbon Herald
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Carbon markets have been experiencing the simultaneous effects of two strong forces recently – growing interest and demand, as well as increased scrutiny. Both have been grappling with the complexity of the carbon markets and work in both public and private settings is under way to untangle the existing threads, as well as setting up frameworks to allow for impactful growth.

We caught up with Finn Grundmann, co-founder and CIO of 44.Moles, a nascent carbon credits firm that pioneered the BLOC system (biodynamic long-term offset credit), after we learned that he will be hosting an expert panel focused on this topic at the IETA European Climate Summit in Florence, Italy, which will be held between the 16-18th of April.

“I think complexity is an issue blocking a lot of work and a lot of progress in the market. Participants in the market tend to simplify complexity when it seems easy to act and easy to achieve impact. In oversimplifying I think they’re actually eliminating a lot of solutions and possibilities from the market,” he says when discussing the importance of the matter.

Joining him on the panel will be three prominent industry figures, together representing governance, business, and legal perspectives.

Olga Gassan-zade, member of the United Nations Article 6.4 Supervisory Body, and its chair until recently, will bring the governance perspective. She has made substantial contributions to the development of the Article 6.4 framework, which is set to determine how the UN approves carbon projects.

Her decades of experience and insight into policy creation will help shed light on one of the issues facing the markets – the difference between applying single global standards, rather than those based on conditions and circumstances on the ground. “One of the things that I want to ask [in terms of governance] is what are the up and downsides of having global frameworks that are top down versus bottom up,” adds Grundmann.

Giulia Carbone, Director of the Natural Climate Solutions Alliance at the World Business Council for Sustainable Development (WBCSD) will also be among the panelists. She brings expertise in corporate social responsibility, environment and biodiversity and through the WBCSD works with some of the largest buyers of credits globally.

The third panelist will be Peter Mayer a New York City-based attorney, partner, and business advisor with 20 years of experience working in big law, that has composed and signed off on some of the biggest carbon deals so far. He brings expertise in carbon capture and carbon removals and supported 44.Moles in drafting the unique 99-year carbon project contracts that set them apart from other industry players.

“Peter has a very unique perspective on how to unite the complexity that buyers in carbon markets perceive, and the complexity that the project developer deals with trying to use regulatory frameworks as a bridge but essentially boil it down to a contract where the landowner and the buyer agree to a set of terms that allow for them to make a deal.”

Everyone should also have an interesting perspective on certain aspects of risk management. “I [also] want to take the conversation from complexity to risks during the panel. It’s about the distribution of risk, whether that is as a landowner or a buyer. Something I want to ask the panel is why regulatory frameworks don’t seem to focus on who takes on how much risk, regardless of whether it’s the EU ETS, Article 6.4 or others,” says Grundmann about another part of his plan for the conversation.

The panel will take place on the 17th April at 17:15 CET and you can find additional information about the event’s agenda here.

Read more: ICVCM Calls On Experts To Join Continuous Improvement Work Programs

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