* The Paris Agreement and subsequent flurry of net-zero targets is shaping today’s climate policy. Now, every policy is a climate policy * The role of emission reductions and carbon removal in climate action will evolve, and the latest IPCC report has shed new light on how * The world is moving beyond the announcement of climate targets and into getting things done – this is a much bigger challenge on both country and corporate level * There are exciting policy developments in Europe that will shape the world for corporates for decades to come * The role and shape of carbon markets is changing, we’re in a transition phase and expecting convergence of voluntary and compliance carbon markets * SMEs have various roles in climate action, there are also global initiatives to facilitate this work.

1. Climate Action: the role of SMEs
Eve Tamme
Founder and Managing Director
Climate Principles
By Illuminem and StimShift, 07 June 2022

2. THE PARIS AGREEMENT
Framing the Climate Policy
Source: IPCC Special Report on 1.5 degrees

3. Source: WGIII contribution to the IPCC Sixth Assessment Report
Adoption of policy instruments

4. The Three Roles of Carbon Removal

5. Compliance markets
Actors: governments, companies
Size: > $851 bn
Characteristics: growing, slow to change
voluntary Markets
Actors: mostly companies
Size: > $1bn
Characteristics: rapidly growing, flexible
Source: Emissions Trading Worldwide: 2022 ICAP Status Report
Source: Data from the Ecosystem Marketplace
Carbon Markets

6. • Currently in transition phase
• Increasing convergence between the
two
• Both compliance and voluntary
markets are growing
• Eventually, carbon markets will
become carbon removal markets
The Future of Carbon Markets

7. The Three Roles of SMEs
Making climate your business
tackling climate impact of your business
tackling climate impact beyond your business

8. @EveTamme
EveTamme
evetamme.com;
Eve.Tamme@climateprinciples.com
climateprinciples.com
Thank you