Publication

This report discusses the role of the Framework for Various Approaches (FVA) under the UN Framework Convention on Climate Change (UNFCCC). According to the author, the FVA will be needed not only to create a liquid global carbon market, but also to allow some of the emerging national carbon markets to function properly. Many national carbon markets will find it challenging to be liquid on their own, and a market without liquidity will be dysfunctional, and give wrong price signals. The FVA is, it is argued, therefore not a luxury, but a necessity.