Fixing carbon prices, the key to invest in sustainable projects

The VIII Latin American and Caribbean Carbon Forum (FLACC, for its acronym in Spanish, closed with an urgent call to the governments of the region to prioritize the climate agenda. For three days, close to 100 experts and national and international authorities presented initiatives and relevant information regarding climate change, emphasizing the need to migrate toward low in carbon economies. 

Ligia Castro, Director of Environment and Climate Change at CAF, Development Bank of Latin America, stated, "The Forum has promoted opportunities and public-private alliances that encourage efficient and competitive projects, facilitate the migration of our countries toward low in carbon economies, and allow us to adapt to the new conditions of climate change".  

The event, which included tha participation of close to 700 people between authorities, speakers, and participants from 39 countries, will lead to the promotion of what would be a draft of the agreement which is expected from the Conference of the Parties in the Lima COP 20 in mid-December, which will be a key step to achieve a global agreement in the 2015 Paris COP 21. 

John Kilani, Director of the Sustainable Development Mechanisms program of the United Nations Secretariat of the Framework Convention on Climate Change (UNFCCC) expressed, "I am impressed by the participation of Latin America and the Caribbean to face up to climate change. The proactive search for solutions to establish a carbon price, the interest of this market, and the tools based on the Clean Development Mechanisms are very promising leading to the Lima Conference". 

The event brought up to the representatives of the countries the need to establish a carbon price for companies. James Close, Director of Climate Change at the World Bank,  expressed, "The region has become a center for innovation, including green transportation systems, clean energy, insurance for natural disasters, and forestry conservation programs. However, we will not see the necessary investments in clean technology without establishing a significant price for carbon." 

For the experts, it is important to achieve a tariff agreement in favor of sustainable development that is friendly with the environment. At the close of the event, Dirk Forrister, President and CEO of the International Emissions Trade Association (IETA)  assured that "We had a powerful business force demonstration in all of Latin America during the Forum. You could feel the enthusiasm and flow of creativity in the discussions. This is just what we need for a new wave of action. The most important message is that the price of carbon is essential because it is the key for new investments.

Successful cases, innovative projects, and best practices were also present during the development of the Forum. For example, the case of Costa Rica, which became a leader in carbon markets after it established a tax on carbon 17 years ago.

Alvaro Umaña, former Minster of the Environment in Costa Rica, concluded that " that tax which is paid when buying fuel for vehicles, has generated more than USD 200 million which have been invested in protecting forests, reforestation, indigenous communities, and has distributed wealth in rural areas where there is greater prevalence of poverty". 

The eighth version of the FLACC was held in Bogota, Colombia, between September 3rd and 5th. The inauguration was in charge of Gabriel Vallejo, Minister of the Environment and Sustainable Development in Colombia, and Victor Traverso, CAF's Director Representative in Colombia. The two entities hosted the event.