As international climate policy evolves, market-based mechanisms are emerging as a vital and effective tool to channel finance directly to where it is most needed, complementing traditional climate finance and accelerating on-the-ground action.
To unlock the full potential of these mechanisms, it is essential to build a shared understanding of their value and integrity, moving beyond critique to a common appreciation for the tangible benefits these specific types of projects deliver.
This position paper presents a compelling case for carbon finance rooted in the principle of suppressed demand.
Global commitment to climate action has created an unprecedented opportunity to align financial flows with the most impactful solutions. Specifically, by directing investment toward community projects that address suppressed demand through the provision of fundamental services like clean energy and water, we can accelerate both climate mitigation and sustainable development for the world's most vulnerable.
Executed with the highest integrity, this approach is an essential tool for achieving climate justice. It is an invitation to direct investment toward the communities building a just, resilient, and sustainable future from the ground up.
