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BofA Says Cancun Rebuilds Global Climate-Protection Process
2010-12-13 10:37:20.267 GMT
By Mathew Carr
Dec. 13 (Bloomberg) -- Abyd Karmali, global head of carbon
markets for Bank of America Merrill Lynch, said the climate-
protection talks in Cancun, Mexico, helped rebuild confidence in
the process. Karmali, president of the Carbon Markets &
Investors Association, commented by e-mail.
On the outcome:
"No new legally binding targets or timetables, but at
least some important rebuilding of multilateral process that
lays foundation for future progress. Now that countries'
emission reduction targets are enshrined in the new Cancun
Agreement, it is critical for countries to move forward with
their domestic policies. It is these specific measures more than
anything that will determine the scale and rate of capital flows
into the low-carbon economy in the short-term.
On the Clean Development Mechanism, the biggest offset market:
"Significant CDM reforms were achieved, and we applaud
progress in streamlining, appeals process, standardized
baselines -- all of which will reduce transaction costs. But
there is still some overhanging uncertainty about demand for
CERs post-2012 outside the European Union."
On Reduced Emissions from Deforestation and Forest Degradation:
"Decision is a big breakthrough. Recognition of the
importance of sub-national activities and strong safeguard
provisions are both good. Lack of specifics on finance including
future use of carbon markets is a concern. On the other hand,
markets are not ruled out, and there was near consensus about
the important role that markets could play in the longer-term."
On financing for developing nations:
"The Green Fund is an important institutional step forward
for climate finance overall, but the exact interactions with
private finance will only become clearer over time."
For Related News and Information:
EU carbon-market stories TNI EU ENVMARKET <GO>
Today's top energy, environment news ETOP <GO>, GREEN <GO>
--Editors: Mike Anderson, John Buckley.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
