Government Strategies to Mobilize Domestic Carbon Credit Markets

The policy report “Government Strategies to Mobilize Domestic Carbon Credit Markets: A Policy Toolkit for Building Demand, Supply and Investor Confidence” guides governments on how to build and scale their domestic carbon credit markets and bolster investment into national mitigation activities.

Produced with support from the Voluntary Carbon Markets Integrity Initiative (VCMI), the report examines a wide range of policy instruments that countries have successfully implemented to strengthen domestic carbon credit markets. It presents a wealth of measures countries can use to build strong domestic carbon credit markets, consistently attract investment into these markets and support and encourage the development of high quality carbon projects. It also recognizes the widening climate finance gap affecting most countries, at a time when the impacts of climate change are intensifying and conventional public finance sources are insufficient to shore up much needed funding for priority emissions reduction and removal projects in the countries, regions, and sectors where it is needed most.

Recommended policy measures are presented in the report as a range of options countries can tailor to their specific needs, ensuring that domestic carbon credit markets are used strategically and as a catalyst to widen their sources of climate finance, accelerating progress toward their national climate and sustainable development goals.

The report lays out policy actions and measures guiding countries around attracting and facilitating investment into domestic carbon credit markets; driving demand for carbon credits; and increasing supply of high-quality carbon credits. It also highlights stand-out countries such as Ghana and the Republic of Korea that have successfully implemented these policies.