INTEGRAL EFFICIENCY SYSTEM

 

In recent times, organizations and companies have been looking for comprehensive solutions in research companies and there is one of them that seems to have aroused interest.

 

BalGreen incubated at the International Monetary Fund (IMF) and whose objective is to provide simple and transparent solutions for immediate compensation through renewable technologies with existing delivery to issuers that need to compensate.

But it also uses tools to reduce, in a circular way, the rest of the sources related to emission problems in all sectors.

 

Using the efficiency and the substitution of technologies in the case that it is necessary.

 

 

 

 

THE SOLUTIONS

 

The solutions that BalGreen offers are through the positive tools that we have in our possession.

 

The Sustainable Cities Roundtables created by BalGreen are important for streamlining Compensatory transactions, but specifically so that cities with spaces or possibilities to compensate can assert that power by sharing it with (generally larger cities that have high emissions and few possibilities of offset or reduce their negative impacts).

 

 

 

THE KEY TOOLS

 

Article 6.4 deals with the trading of carbon credits between the public and private sectors.

Where some progress was made in the talks, but fundamental differences persist on Article 6.4

 

 

 

COLLABORATIVE EXERCISE; “COLLABORATIVE CITIES”

 

More cooperation is needed as governments seek to monetize and manage carbon projects.

Article 6 on reducing greenhouse gas emissions, Andrea Bonzanni, international policy director for the International Emissions Trading Association, said in a recent interview.

 

 

 

MAKE DECISIONS WITH CONVICTION

 

For full access to real-time updates, breaking news, analysis, pricing, and data visualization.

 

 

 

REFLEXES

 

Article 6.4 deals with the trading of carbon credits between the public and private sectors.

“The [carbon] markets are necessary to reach net zero. And it is important that the solutions proposed through article 6.4 be observed. This must be seen as the only clear alternative to accelerate the reduction of emissions and direct investment in sustainable and renewable processes.”

 

It is important to have an understanding of the role that Article 6 and carbon markets should play in the fight against Climate Change.

“You have to recognize that they are necessary,” he told Alexander Soros.

 

 

 

SEARCH TANGIBLE SOLUTIONS

 

Pressure is being put on policymakers to work out the details and methodologies of Article 6.4 of the Paris Agreement.

 

This comes a week after the Article 6.4 Supervisory Body held its fifth meeting, where it acknowledged that it still had more work to do to advance the development of methodologies and the incorporation of carbon removal technologies.

 

 

 

WHAT DOES IT SAY?

 

Article 6 of the Paris Agreement sets the rules for global trading in greenhouse gas emission reductions and will have a critical impact on markets for voluntary carbon credits.

 

 

 

GENERAL BENEFITS

 

Countries can adopt cross-border exchanges of credits known as Internationally Transferable Mitigation Results, or ITMOs, under Article 6.2, which establishes a national accounting system for greenhouse gas emissions.

 

 

 

LACK TO VOTE THE WAY TO FOLLOW

 

The rules around Article 6.4 have yet to be agreed and the UN has appointed a 12-member body to oversee the mechanism.

What set off the alarm bells is the simple and comprehensive solutions that encompass solutions both immediately and deep in time.

 

That is why Alexander Soros’s interest in BalGreen was surprising, in the early days of receiving the role of power bestowed by his father.

BalGreen is a company developed by an Argentine in the IMF that is part of the small group of initiatives that Soros (h) has been following closely for some time.

 

 

A few days ago he mentioned in the capitol that “BalGreen has the potential to positively impact the mitigation of Climate Change with simple solutions, which can be rapidly replicated by states and companies,” said Alexander Soros.

 

“Without a doubt, BalGreen is under the interest of the Open Society Foundations and the solutions that the planet needs.”

 

 

It seems that Alex Soros is trying to introduce these solutions simultaneously in several countries and organizations to find the scalability that the world requires.

But the Hedge Funds friends of his family believe it is necessary, such as Bill Gates and Klaus Schwab.

 

 

 

BALGREEN USES THE 6.4;

“TO GIVE SPEED TO THE TRANSITION AND THE SCOPE OF NET-ZERO EMISSIONS”

 

Article 6.4 is a mechanism that allows a company from one country to reduce emissions at the national level and obtain credit for those reductions to be able to sell them to another company from another country.

The challenges facing carbon markets. Below is a transcript of his comments, edited for length and clarity.

 

 

 

How is the recent scrutiny of carbon markets affecting the participation of countries under Article 6?

For completeness, the criticism has led many to believe that voluntary carbon markets are not a viable tool for reducing emissions and meeting the Paris Agreement targets, or at least that they should not be a priority. And that is reflected in what many countries are doing.

They are focusing their efforts at the national level without looking at international markets.

 

 

Is carbon nationalism gaining ground, with many governments trying to regain control of large carbon projects?

How will this affect the evolution of carbon markets globally?

Many countries have investigated how voluntary carbon activity affects their ability to meet NDCs and how they can benefit from it. Usually, it is the negative cases that make the headlines. But there are countries that are regulating the market in a way that does not create problems for project developers.

For example, [some countries] have a framework for authorizing projects under Article 6 and for tracking voluntary carbon market projects without authorization under Article 6 and therefore without corresponding adjustments. So overall, it’s good for countries to look at how carbon markets can work in their interest.

But a balance must be found between countries’ objectives of maximizing benefits for themselves and what is feasible for international investors.

I think many of these countries view carbon in the same way that they view other natural resources like oil and agricultural commodities.

So, it’s about government involvement versus international investor involvement.

 

 

LOOKING FOR THE BALANCE

A balance can be found in all commodities, but in carbon there is a key difference, as the international carbon market would not exist if we did not have a certain international framework or set of cooperative approaches.

 

 

THE IMPORTANCE OF THE CASE

So it is important that this infrastructure is built and that it is robust, otherwise there would be no carbon to monetise.

It’s a bit different from raw materials, where the demand exists because our economies need these resources.

The carbon market is different, as demand ultimately depends on policies and institutional arrangements.

 

 

SYNTHESIS:

The solutions exist and are easy to integrate, states are open to consider adopting them.

The options of some paragraphs of the Paris Agreement give possibilities to balance the balance with extraordinary income that the states were previously unaware of.

 

 

CONCLUSION:

The solutions came to collaborate with the environment, but also to provide a new financial framework for taking care of the planet. “I propose that

we take advantage of the profits from caring for the Earth.”

 

 

 

 

 

 

AUTHOR:

DIEGO BALVERDE

ECONOMIST

EUROPEAN CENTRAL BANK & SENIOR ADVISOR IN GLG