Ensuring Developing countries’ participation in the global carbon market

Financing the move to low-carbon economic development remains a crucial part of any discussion of Carbon Finance. An interesting paper by Wagner, Keohane, Petsonk, and Wang provides a valuable framework to address that issue. To them, financing the transition to low-carbon economic development must be the focus of any framework to encourage developing countries’ participation in the global carbon market... the essence of Clean Investment Budgets (CIBs).
Their framework includes the proposal that emerging economies could adopt binding limits on greenhouse gas emissions, set above current levels but within economic and environmental constraints. Such a step would enable these nations to access carbon finance immediately and far more efficiently than existing and proposed mechanisms.