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dc.titleThe Role of Finance Ministries in Carbon Markets
dc.contributor.authorDelgado, Raúl
dc.contributor.authorCaffera, Marcelo
dc.contributor.authorTalbot-Wright, Hipólito
dc.contributor.authorArioua, Eugenia
dc.contributor.authorTorres Pelaez, Daniela
dc.contributor.authorAlves, Tatiana
dc.contributor.authorLoo-Kung, Rudy
dc.contributor.orgunitFiscal Management Division
dc.contributor.orgunitClimate Change Solutions Division
dc.date.available2025-10-03T00:10:00
dc.date.issue2025-10-03T00:10:00
dc.description.abstractCarbon 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.
dc.format.extent80
dc.identifier.doihttp://dx.doi.org/10.18235/0013741
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Role-of-Finance-Ministries-in-Carbon-Markets.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/El-papel-de-los-ministerios-de-finanzas-en-los-mercados-de-carbono.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.relation.seriesMEF Climate Change Platform
dc.subjectGreenhouse Gas Emission
dc.subjectMinistries
dc.subjectIntegration and Trade
dc.subjectFinance
dc.subjectClimate Change
dc.subjectRegulation
dc.subjectPollution Prevention
dc.subjectDecarbonization
dc.subjectTaxation
dc.subjectWage
dc.subjectParis Agreement
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeF30 - International Finance: General
dc.subject.jelcodeD53 - Financial Markets
dc.subject.jelcodeQ56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
dc.subject.jelcodeO20 - Development Planning and Policy: General
dc.typeLearning Materials
idb.identifier.pubnumberIDB-LM-00767
idb.operationRG-T4158
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