Global Carbon Market Investment Forum: Summary of Discussions and Outcomes

□ The Global Carbon Market Investment Forum, hosted by the Ministry of Economy and Finance (MOEF) and organized by the Korea Development Institute (KDI), was held from December 11 (Thursday) to December 12 (Friday), 2025, at the Global Knowledge Exchange & Development Center (GKEDC) in Seoul, under the theme “A Pathway for a Carbon Market Aligned with Article 6 of the Paris Agreement.”


- The Forum was convened to discuss ways to enhance the credibility and transparency of international carbon markets and to promote investment. Approximately 200 participants attended, including representatives from major international climate organizations such as the United Nations Framework Convention on Climate Change (UNFCCC), the Green Climate Fund (GCF), and the Global Green Growth Institute (GGGI); multilateral development banks, including the World Bank (WB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the African Development Bank (AfDB); government officials from partner countries; and private-sector stakeholders and experts.
 

□ The opening ceremony on Day 1 (December 11) marked the official launch of the Forum, with representatives from MOEF, GGGI, and the UNFCCC outlining the Forum’s overarching objectives and strategic direction.

- In his opening remarks, Jisung Moon, Director General for the Development Finance Bureau at MOEF, emphasized that, on the occasion of the 10th anniversary of the adoption of the Paris Agreement, the global community must move beyond declarative commitments toward concrete and measurable emissions-reduction actions. He underscored the importance of establishing international carbon markets with high levels of credibility and transparency, noting that the Republic of Korea—drawing on its experience in operating an emissions trading system and its accumulated technological capabilities—is well positioned to serve as a bridge connecting technology, investment, and institutional frameworks in international carbon markets. He also introduced the Global Voluntary Carbon Market (GVCM) as a concrete initiative reflecting this vision.

-  Following this, Sanghyup Kim, Director General of the Global Green Growth Institute (GGGI), highlighted the importance of high-integrity carbon markets that combine strong national institutional credibility with internationally agreed rules and standards. He emphasized that the GVCM should evolve as a new cooperation platform aligned with Article 6 of the Paris Agreement, developing progressively through solidarity and collaboration among countries.

- In a video address, Noura Hamladji, Deputy Executive Secretary of the UNFCCC, stated that international carbon markets are transitioning into a full implementation phase. She highlighted the central role of the Paris Agreement Crediting Mechanism (PACM), stressing that environmental integrity and fair benefit-sharing must remain core principles. She reaffirmed that high-integrity carbon markets should serve as a key instrument for accelerating emissions reductions and mobilizing climate investment.

□ Following the opening ceremony, discussions on Day 1 focused on the overall direction and credibility of international carbon markets, addressing the following key themes: (i) Article 6 of the Paris Agreement and international carbon markets; (ii) the introduction of the Global Voluntary Carbon Market (GVCM); (iii) enhancing liquidity and international investment in carbon finance markets; and (iv) digitalization and artificial intelligence in carbon markets, with a focus on leveraging technology to strengthen the reliability and innovation of MRV systems.

- Participants agreed that, as international carbon markets increasingly emerge as a core instrument for greenhouse gas mitigation, it is essential to enhance market transparency and consistency based on shared understandings of institutional standards and operational practices.

- In particular, participants emphasized the importance of ensuring coherence between compliance markets and voluntary carbon markets. In this context, digital technologies and AI-based MRV systems were highlighted as key enablers for strengthening integrity in carbon markets.

- Discussions also underscored the potential of collaborative market structures involving both public and private sectors to improve the bankability and feasibility of international mitigation projects and to broaden market participation.

□ On Day 2 (December 12), the Forum focused on practical examples and case discussions related to carbon markets. Sessions addressed the following key areas: (i) issued carbon credits and ITMO-related projects, including cooperation opportunities with partner countries; (ii) the introduction of carbon mitigation technologies and the identification of related cooperation opportunities; (iii) carbon finance strategies of multilateral development banks (MDBs); and (iv) the role of public climate finance in de-risking projects and catalyzing private investment in carbon markets.

-  Carbon mitigation technologies and international cooperation cases—covering sectors such as forestry, carbon capture, utilization and storage (CCUS), hydrogen, and landfill gas—were presented by partner country governments and Korean companies. Discussions highlighted that the successful implementation of mitigation projects and carbon credit transactions requires not only technical solutions, but also tailored cooperation that fully reflects the policy environments, institutional frameworks, and local conditions of partner countries.

- Subsequent presentations illustrated how international organizations and MDBs can play a pivotal role in project origination and structuring, as well as in crowding in private investment. In particular, public climate finance was discussed as a critical instrument for mitigating early-stage risks, improving investment conditions, and strengthening linkages between international carbon markets and private-sector investment.

□ The Forum contributed to the development of a shared strategic direction toward strengthening the credibility and transparency of international carbon markets, while supporting the scale-up of international mitigation projects and private investment through integrated approaches across policy, technology, and finance.

- Through the Forum, participants were able to assess the key challenges and roles required for international carbon markets to move beyond policy dialogue toward practical implementation and investment, reaffirming the importance of expanding global cooperation grounded in strong public–private partnerships.

Written by. Yuna Kim, Senior Research Associate, Global Knowledge Cooperation Team, +82 2-6312-4084,  yuna_kim@kdi.re.kr