Market mechanisms provide opportunities for local climate action, higher capacities needed

On 7-8 May, adelphi conducted the 15th Climate Technology Initiative (CTI) Workshop in Berlin. More than 70 experts from 27 countries discussed the possibilities and the challenges of applying market-based climate mitigation instruments in urban contexts.


Carbon market mechanisms have enormous potential in terms of city and municipality-based climate action. The way that a comprehensive application of such mechanisms could eventually play out in the urban context, however, depends to a large extent on the outcomes of the upcoming international climate change negotiations at COP21 in Paris. These are the main findings from the 15th edition of the CTI Workshop, hosted by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) on 7-8 May 2015 in Berlin, Germany.

Under the title of "Market Mechanisms for Climate Action at the Urban Level", policy experts, decision-makers, scientists and representatives of financial institutions met to discuss the role market based instruments can take in climate mitigation at the city level. In addition to an integrated approach to cities, the workshop focused on the building, transport and waste sectors. Participants also took the opportunity to exchange experiences and to network.

Market mechanisms offer numerous positive side-effects in urban planning

The two-day workshop opened with a panel discussion on the transferability of market mechanisms to climate action at the local level. The panel came to the conclusion that cities need more autonomy if they are to be able to take effective action. The four panelists saw particularly high potential for approaches that combine mitigation and adaptation. Two aspects became clear in subsequent presentations and discussions: firstly, the participants found that applying market mechanisms at the urban level can have positive co-benefits, such as a decrease in noise pollution and an improvements in road safety. Secondly, however, participants warned that developing countries must achieve large capacity increases before they are able to make comprehensive use of these market-based climate mitigation instruments.

The second day of the workshop focussed on the construction, transport and waste industries. The speakers presented projects, programmes and initiatives that are already applying market mechanisms in their respective sectors or show potential for such application.

As in previous years, adelphi took on the organisational, technical and content-related planning of the workshop, as well as selecting participants and speakers and conducting the 2015 CTI Workshop on behalf of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).