The Board of the International Organization of Securities Commissions (IOSCO) today has launched a 90-day public consultation on recommendations for establishing sound Compliance Carbon Markets (CCMs) and on key considerations for enhancing the resilience and integrity of Voluntary Carbon Markets (VCMs).
IOSCO calls on market participants to provide feedback on how to foster fair and functional markets and increase structural resilience to ensure these markets achieve their raise d’être, i.e., the environmental objectives upon which their existence is based.
Announcing the publication of the reports at COP27, Jean Paul Servais, IOSCO Chairman, IFRS Foundation Monitoring Board Chair and Chairman of the Belgium FSMA, said “In recent years, carbon markets have gained significant importance as a mechanism for corporates, and society in general, to facilitate their transition towards net zero. However, they have so far fallen short of their objectives. No market can function without appropriate levels of integrity and, transparency, and liquidity so IOSCO today hopes to lend its international, market expertise to help develop appropriate frameworks for sound and well-functioning carbon markets, focusing on promoting integrity and liquidity and increasing transparency to facilitate price discovery.”
Rodrigo Buenaventura, Chairman of the Spain CNMV and Vice Chair of the IOSCO Sustainability Taskforce, said “Financial market regulators and IOSCO are eager to see well-functioning carbon markets, which means liquid markets that investors can trust and where there are strong disclosure practices. That has not yet been consistently achieved. There are good practices we have now set out which will make that achievable.”
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