Carbon markets should fund adaptation, loss and damage: Mohieldin

Ahram Online , Sunday 21 May 2023

Mahmoud Mohieldin, UN climate change high-level champion (HLC) for Egypt, stated that carbon markets should not only be utilized to reduce emissions, but also to fund climate change adaptation and mitigate losses and damages.

UN Climate Change High-Level Champion for Egypt Mahmoud Mohieldin (centre) speaking during a meeting organized by the Egyptian Presidency of COP27 in the headquarters of the Egyptian Foreign Affairs Ministry on Sunday. Mohieldin Media Office


Mohieldin’s remarks came during his participation on Sunday in a meeting organized by the Egyptian Presidency of COP27, Ministry of Environment and HLC for COP27 in the headquarters of the Ministry of Foreign Affairs.

The meeting discussed issues related to carbon markets and their developments at local, regional and international levels.

It featured the participation of Ambassador Mohamed Nasr, director of the Environment, Climate and Sustainable Development Department at the Ministry of Foreign Affairs and Sherif Abdelrahim, head of Climate Change Technology and Research General Department at Ministry of Environment.

It was also attended by Catiana Garcia-Kilroy, sustainable finance expert at the World Bank; Andrea Abrahams, managing director at the International Emissions Trading Association; and Bogolo Kenewendo, climate champions' special advisor, in addition to a number of officials from local and international banks and finance entities and representatives from the private sector.

Mohieldin, who is also the UN special envoy on Financing 2030 Sustainable Development Agenda, stated that the carbon market in Egypt should be linked to related international and regional updates. In addition, local stakeholders should be mobilized in order to amplify the benefits of carbon markets and reduce losses.

He emphasized the importance of identifying the type of market, whether it will be compulsory or voluntary, and establishing a regulatory framework with the help of experts and academics.

He also highlighted the need to learn from successful experiments in different countries, particularly in Asia, to produce positive effects in various sectors, especially finance and energy. Furthermore, encouraging the participation of the private sector by applying environmental, social, and corporate governance metrics will prevent greenwashing.

Mohieldin stressed the importance of planning for the market side when launching the carbon market. Available opportunities and global competitiveness must be taken into account and special attention must be paid to developing national standards and coordinating them with the existing international standards.

It is also essential to establish clear regulatory policies for the carbon market, he said, including governance and tracking, to ensure transparency and to leverage digitalization through partnerships with related technology companies.

Mohieldin commended the Egyptian government's interest in establishing a carbon market and the involvement of relevant ministries in dialogue and collaboration with local stakeholders to identify roles and combine efforts in setting policies and moving towards market operation.

Moreover, he emphasized the need to place the mechanism of carbon markets in a more comprehensive framework to contribute to achieving various sustainable development goals.

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