Background

South Pole Ltd. contributes to a more sustainable world by assigning a value to greenhouse gas emission reductions on the market. Market-based instruments are an innovative way to tackle the challenge of climate change.

The Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) is the first international treaty that contains binding emission reduction targets. By 2012 industrialised countries on average have to reduce their greenhouse gas emissions by 5.2% below their 1990 levels. Emission reductions can either be achieved domestically or by purchasing certificates from abroad. These so-called “flexible mechanisms” form the basis of an international emissions trading market.

The Clean Development Mechanism (CDM) is one of these “flexible mechanisms”. Using the CDM, buyers from industrialised countries finance project activities in developing countries, which contribute to mitigating climate change and to promoting sustainable development.

The CDM Gold Standard is a quality label endorsed by major NGOs. The Gold Standard is an independently audited best practice benchmark for CDM projects that deliver high quality carbon credits of premium value. Initiated by WWF, the Gold Standard is supported by approximately 40 environmental and development NGOs worldwide.