King & Wood Mallesons welcomes the publication of the final report of the International Organization of Securities Commissions (IOSCO) in respect of compliance carbon markets. The report brings together the views of industry bodies and market participants around the globe as to:
- the objectives and role of compliance carbon markets;
- the challenges and best practices relating to the implementation of compliance carbon markets;
- the regulatory frameworks that apply;
- policy recommendations to relevant authorities as regards the development of compliance carbon markets (having regard to the IOSCO Principles for the Regulation and Supervision of Commodity Derivatives Markets and the IOSCO Objectives and Principles of Securities Regulation), and
- the possibility of linking compliance carbon markets.
King & Wood Mallesons is delighted to have worked with the Global Financial Markets Association (GFMA) in preparing a comprehensive response to IOSCO’s consultation. GFMA represents the world’s leading financial and capital market participants, through its constituent alliance members AFME (the Association for Financial Markets in Europe), ASIFMA (the Asia Securities Industry & Financial Markets Association) and SIFMA (the US Securities Industry and Financial Markets Association).
We are very pleased to see that IOSCO has generally taken on board the views and recommendations set out in the GFMA consultation response, including that for compliance carbon markets to be effective, it is important they are underpinned by the same principles as any sound and robust regulated financial market: integrity, transparency, stability, and accountability.
We look forward to publication of IOSCO’s final report relating to voluntary carbon markets in due course and its assessment of the views and recommendations of GFMA members (given in the consultation response prepared by King & Wood Mallesons).
King & Wood Mallesons is excited to continue our work with ASIFMA in preparing an industry paper to promote the development of robust and liquid carbon markets across APAC.
