3. Three financial instruments to support NDCs
When developing their NDCs, countries establish the policy and regulatory framework, as well as the role assigned to financial regulatory systems (ETS or taxes).
In the private sector, carbon crediting mechanisms are constantly evolving to align with NDC targets. International rules—particularly through the adoption of rigorous standards such as the Core Carbon Principles (CCPs)—are becoming essential for the international recognition of voluntary credits.
The Integrity Council for the Voluntary Carbon Market is a set of international standards that certify CO 2 reduction or sequestration projects in carbon markets. Projects certified under these standards can generate tradable carbon credits.
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Three financial instruments to support NDCs
Carbon pricing that is struggling to boost NDCs
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