Vi har intervjuat Gareth Philipps som är ordförande i Project Developers Forum.

How important are carbon markets in the whole policy mix?

Markets are very important, and I think it is certain that we won’t meet the two degree target without them. Markets are the only way in which finance is going to be applied at scale; the Green Climate Fund has a target of USD100 bn per annum by 2020 and although this sounds like a lot of money, in global terms and in terms of the investment in energy infrastructure, it’s a relatively small amount. We need to transition to low carbon technologies and the best way to do that is to place a price on carbon emissions via markets. Note – this means the role of the market is to finance the transition to low carbon technology, not just to reduce emissions as cheaply as possible. Under this definition, we have seen some notable market failures recently, particularly the EU ETS where the price has been too low to trigger investment in low carbon technologies; and a very notable success – the CDM – where strong forward price projections resulted in the creation of a pipeline of projects worth in excess of USD500bn. Markets have a massive role in solving this problem but we have to get them right and that has not happened yet.

What do you see as important outcomes from this COP?

Two main outcomes are that the CDM’s role is acknowledged and that the Green Climate Fund is operational. Now the important step is to raise and deploy USD100 billion on an annual basis. The Green Climate Fund is intended to be a primary tool to demonstrate how to channel funds needed to bring the total annual greenhouse gas emissions in line with the remaining GHG budget so as to stay below the 2 degree target. Once operational, its success will be measured in actual tons of CO2 emission reductions and total costs to do so, a mighty task ahead of us.