PNG LIFTS MORATORIAM ON VOLUNTARY CARBON MARKET PRODUCTS

By Ricky ISRAEL

PNG is lifting its moratorium or the temporary suspension on new Voluntary Carbon Market (VCM) projects.

This announcement was made today by the Minister for Environment, Conservation, and Climate Change, Simo Kilepa. The government had imposed a temporary suspension on VCM projects in 2022. This was done to create a solid framework for regulation and governance in the sector.

Minister Kilepa explained that significant progress has been made over the past two years.

The new regulations will ensure that carbon market activities are conducted in a fair, transparent, and well-managed way.

He also emphasized that the lifting of the moratorium will help PNG become a responsible and competitive player in the global carbon market.

It will also ensure that the benefits of these projects are shared fairly among landowners, investors, and the government.

Key legislative changes, including the amendment of the Climate Change (Management) Act 2015 to the current Climate Change (Management)(Amendment) Act 2023, the Climate Change (Management) (Carbon Markets) Regulation 2024, and the National REDD+ Safeguards Guidelines.

These policies provide the necessary safeguards to ensure that carbon market activities in Papua New Guinea (PNG) are conducted with integrity, transparency, and inclusivity
These policies aim to safeguard the integrity of the carbon market while promoting sustainability and inclusivity.

In addition, the Acting Managing Director of the Climate Change Development Authority, Debra Sungi, expressed pride in the achievements made in the past year under the leadership of Minister Kilepa.

She highlighted that the new carbon market regulations would benefit PNG, especially its forestry sector, and involve other sectors like energy and waste.

Sungi also mentioned the country’s first pilot project under a partnership with Japanese Government and PNG Power Limited to upgrade the Port Moresby transmission grid with an investment of $US10 million.

Minister Kilepa stated that this marks an important step forward for PNG, and with the new carbon market regulations, the country is well-positioned to attract more investments while tackling climate change.