During a virtual event, the Partnership for Carbon Accounting Financials (PCAF) launched today a public consultation on two reports: (i) Draft GHG accounting methods for green bonds, sovereign bonds, and emissions removals; and (ii) Discussion paper on capital market instruments.
The three new draft methods launched today are designed to measure financed emissions from green bonds, sovereign bonds, and loans and investments in emissions removals activities. The methods were developed by the PCAF Core Team, a group of 21 financial institutions from Africa, Asia Pacific, Europe, Latin America, and North America. PCAF now seeks feedback on these methods, and the PCAF Core Team will continue to refine the methods in light of the consultation responses.
The discussion paper, also launched today, highlights the importance of capital markets to facilitate the climate transition, and introduces the concept of facilitated emissions. It explains the key choices necessary to develop guidelines for facilitated emissions and describes the complex challenges around making those choices. In the paper, PCAF presents the next steps for developing and publishing a GHG accounting methodology for capital markets activities in 2022.
Giel Linthorst, Executive Director of PCAF says: “The publication of these new methods for green bonds, sovereign bonds and emissions removal, combined with the discussion paper on capital markets instruments highlight another milestone in the progress PCAF has been making to harmonize the measurement and disclose of GHG emissions associated with financial activities globally. I'm proud of PCAF's Core Team for the work they have delivered and look forward to receive feedback on these publications”.
The draft methods and the discussion paper are open for public consultation from today until 17 December 2021. PCAF seeks feedback from all stakeholders, including financial institutions, regulators, policy makers, supervisors, data providers, consultants, and NGOs.
To participate in the public consultation, stakeholders should follow the instructions on the PCAF public consultation webpage.
Executive Director, PCAF Secretariat
Program Manager, PCAF Secretariat
The Partnership for Carbon Accounting Financials (PCAF) was launched globally in September 2019. Currently, more than 170 banks and investors have subscribed to the PCAF initiative. PCAF participants work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry to measure and disclose the greenhouse gas emissions of their loans and investments. By doing so, PCAF participants take an important step to assess climate-related risks, set targets in line with the Paris Climate Agreement and develop effective strategies to decarbonize our society.
Learn more at: https://carbonaccountingfinancials.com