Navigating Jurisdictional REDD+: A Ministry Playbook for Corresponding Adjustments

A group of economists and other experts from the Environmental Defense Fund (EDF) and Wildlife Conservation Society (WCS) released a joint guide, “A Ministry Playbook for Corresponding Adjustments – Pricing strategies in carbon markets”. This guide outlines an initial set of key considerations to give confidence to national governments when evaluating complex tradeoffs between selling carbon credits in the Voluntary Carbon Market (VCM) or authorizing Corresponding Adjustments (CA) credits in compliance mechanisms.

The guide aims to help countries with pricing strategies to maximize financial resources from the sale of carbon credits to reach their own economic development and climate goals while upholding the integrity of the Paris Agreement. 

Nationally Determined Contributions (NDCs) are central to global climate action, and carbon markets can be a critical source of finance for achieving the goals of the Paris Agreement. Corresponding Adjustments (CA) credits can play a pivotal role in jurisdictions’ engagement with carbon markets, but governments must navigate complex decisions about issuing carbon credits and authorizing CAs. This paper provides key considerations for national governments, outlining how to strategically manage carbon finance, meet NDC targets, and assess the trade-offs between selling credits in the Voluntary Carbon Market (VCM) or authorizing CA credits. 

Download report PDF

Authors 

• David McLaughlin – Senior Economist, EDF
• Dylan McCall-Landry – Senior Director of Sustainable Finance, EDF
• Sarah Walker – Director of Natural Climate Solutions, WCS
• Stephanie Wang – Associate Director of Climate Finance Policy, WCS