Emissions trading systems are one of the most effective and cost-effective options to meet agreed climate change targets. Many countries in Latin America, including Brazil, Mexico, and Chile, are currently trying to implement such market-based instruments. In order to promote emissions trading systems as well as a continuously growing network of emission trading schemes in these newly industrialized countries, Ecologic Institute initiated contacts between employees of the German Federal Ministry of Environment and Latin American stakeholders dealing with emissions trading and its possible implementation.
This cooperation provided basic knowledge about the operation of carbon markets and built the networks that are necessary for later coordination. The core part of the project was therefore the strengthening of the exchange on emission trading between German and Latin American stakeholders. As a first step, a background paper on the state of the consideration and preparation in terms of emissions trading in Latin America was compiled. It describes the state of preparation for future emissions trading systems and has helped to decide whether it already made sense to travel to these countries to establish contacts, and to select the relevant destination countries. This project focused on Argentina, Brazil, Chile, Costa Rica, Colombia, Mexico, and Peru.
The project enabled the sponsor to pursue the development of emissions trading in specific countries through selected personal contacts and initiated future cooperation by supporting the introduction and the establishment of a trading system.