Decarbonization is an opportunity rather than an obligation for businesses: Dr Rambabu Paravastu, Co-Chair FICCI Climate Change Committee

Dec 11, 2023

Carbon Markets can help identify least cost abatement opportunities: Simon Henry, Director of Carbon Markets Development, IETA

 

Market understanding has to be developed for policy to be effective: Pietro Bertazzi, Global Director, Policy Engagement and External Affairs, CDP

 

 

DUBAI, 11^th December 2023: FICCI, jointly with Delta Electronic Foundation and German Emission Trading Association yesterday organized an official UNFCCC side event titled ‘Investing in Climate Solutions: Strategies and Innovative Finance for Decarbonized Growth’ at the ongoing COP28. 

Dr Rambabu Paravastu, FICCI Co-Chair Climate Change Committee & Chief Sustainability Officer, Greenko Group said, “Decarbonization is an opportunity rather than an obligation for businesses across the globe. The carbon markets have a significant role in development of low carbon emitting projects, especially renewable energy projects, given the urgency and global need for net zero goals.”

Ms Shan Shan Guo, Vice Chairman, Delta Electronics Foundation stressed on the need for new technological interventions to foster circular economy, capacity building and science-based targets to drop greenhouse gas emissions.

Mr Pietro Bertazzi, Global Director, Policy Engagement & External Affairs, CDP highlighted that financial institutions have big role to play in driving climate action. This must be based on data and disclosure to international standards. Market understanding has to be developed for policy to be effective.

While talking about carbon markets, Mr Simon Henry, Director of Carbon Markets Development, IETA pointed out that these markets are not just efficient tools but also key enablers of actions under the Paris Agreement. Carbon markets have multiple key benefits, one of them being mobilizing finance for climate actions. This can be achieved by putting an obligation on carbon emissions and a value on removals thus creating incentives on carbon. Such markets can help identify least cost abatement opportunities to minimize the cost of mitigation, he added further.

Dr Daniel Tutu Benefoh, Director, Environment Protection Agency, Government of Ghana underscored the need to mobilise resources in the limited fiscal space while dealing with emission reduction. Innovation with climate finance will additionally advance development in areas such as access to energy and emission reduction. He added that Article 6 provides the developing nations with a high chance to meet their climate aspirations.

The session discussed the role of financial institutions and investors in driving climate action as well as how innovative financial solutions such as carbon pricing systems and management instruments can accelerate green energy projects and low-carbon technologies. It also discussed the need for a robust Market Mechanism under Article 6 of the Paris Agreement, to reduce the cost of decarbonization, mobilize investment in low-carbon technologies, and support sustainable industrial growth and development. The panel comprised of individuals with vast experience and expertise in the climate change discussions.