@misc{37152,
title = {The Role of Finance Ministries in Carbon Markets},
author = {Delgado, Raúl and Caffera, Marcelo and Talbot-Wright, Hipólito and Arioua, Eugenia  and Torres Pelaez, Daniela and Alves, Tatiana and Loo-Kung, Rudy},
year = {2025},
doi = {10.18235/0013741},
abstract = {Carbon markets are gaining prominence in Latin America and the Caribbean (LAC) as tools to help countries achieve climate goals, mobilize climate finance, and generate government revenue.  This report, led by the member countries of the Regional Climate Change Platform of Ministries of Economy and Finance (MEF Climate Change Platform), examines the role of finance ministries in the design and implementation of carbon markets in Latin America and the Caribbean. It clarifies the distinctions between carbon credit and carbon permit markets, including their operational frameworks, objectives, and legal characteristics, highlighting their challenges and risks. The study finds that while MEFs do have a role in carbon markets, their involvement should be strategic and focused on areas aligned with their core competencies and mandates. To enable MEFs to effectively contribute, revisions to existing legal and regulatory frameworksincluding climate change laws, government organization acts, tax laws, and inter-ministerial coordination policiesare necessary to explicitly define their mandates and responsibilities in carbon market governance. Ultimately, the study advocates for a strategic and focused involvement of finance ministries, emphasizing their expertise in fiscal policy, economic analysis, and revenue management to ensure these markets contribute to climate goals and sustainable economic development.},
url = {https://doi.org/10.18235/0013741}
}