Managing Change, Maximising Benefit: Supporting a smooth transition to a nationally regulated carbon market

Gold Standard has launched a new programme of work to support a smooth transition to a nationally regulated global carbon market, to drive higher ambition, integrity, and equity in the voluntary carbon market and beyond.

Gold Standard has today announced a new programme of work to respond to the growth of national regulation and national involvement in carbon market activities, and to maximise the benefits of this transition for local communities, governments, and project developers. This new programme builds on Gold Standard’s previous and ongoing partnerships and support for governments across the world, including capacity-development activities in countries across Africa, Asia and Latin America, as well as its Article 6 Early Movers Programme from 2022-23, also supported by the Government of Germany.

As many governments across the world seek a stronger role in the regulation and management of carbon market activities, this programme will develop public awareness of the implementation of new regulations, provide best practice models, and deepen alignment between international standards and emerging national frameworks.

The programme will include the following activities:

• The development and piloting of a new framework to enable labelling and alignment between national crediting programmes and Gold Standard, intended to allow governments to draw and build on Gold Standard’s twenty years of experience in standard-setting, while providing flexibility for project developers.
• Technical assistance, guidance and information-sharing on the introduction of new market regulations globally, with solutions for project developers, governments and other actors.
• Capacity development assistance in at least two countries to foster the development of skills and expertise amongst a new generation of market experts.

Margaret Kim, CEO of Gold Standard, said:

“Governments have a critical role to play in the future development of the carbon market. This programme will provide them with the tools to maximise the benefits for their country, citizens and climate strategies, while also benefitting from Gold Standard’s 20 years of experience. If carbon finance is to play a meaningful role in the achievement of the Paris Agreement’s goals, we will need frameworks that deliver a triple-win, working for governments, the private sector and - crucially - local communities.”

A stronger role for national governments can bring benefits to project developers, local communities and other market participants if implemented well, but also has the potential to introduce risks and uncertainty.

The activities to be implemented under this programme are intended to smooth this transition. Greater awareness of regulatory developments amongst project developers and other market actors can support more informed decision-taking and risk management, while best practice guidance and a framework to align national crediting programmes with Gold Standard can both relieve the burden on national administrators, and boost credibility and trust.

The new programme is expected to run for 18 months, concluding in Spring 2025. Gold Standard intends to work with partners across the different planned activities, and welcomes expressions of interest.

As part of this programme Gold Standard is seeking an implementing partner to manage and maintain an online public information repository, providing information on carbon market-regulations globally. See here for more information. The deadline for submissions is 5 January 2024.

The program is supported by the German Ministry for Economic Affairs and Climate Action (BMWK).