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This study investigates multi-stakeholder interactions around data on firm-level carbon management and performance, broadly termed “carbon data markets.” In, Zegas, and Baek focus on studying the regional carbon data market structure within the global carbon data value chain due to country-specificities, such as economic development regime, industrial relations, market maturity, and decarbonization strategy. They use a case study of South Korea due to its high degree of financial market development, its relevancy to the global value chain, and its predominantly state-led decarbonization activity.
Using interviews across each step of the carbon data market value chain, they examine the functioning of a state-led carbon data market and the potential limitations that may arise in similarly oriented carbon data markets. Korea’s top-down approach, while potentially beneficial for the early stage of the carbon data market’s development, manifests in limitations and inefficiencies, including a mismatch in the breadth versus depth of roles taken on by the public sector as well as constrained market activity in the downstream value chain.
They recommend emphasizing capacity building, incentivizing private market activity, and improving data transparency, accessibility, and usability to spur the carbon data market to its next step of maturity. These findings are relevant to governments considering the best strategies for implementing carbon emissions accounting, disclosure, and enforcement and for developing a balanced carbon data market to support decarbonization and achievement of national emissions reduction targets.
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