COP31 Roadmap: Governance Framework for Carbon Markets

Algeria is actively developing a robust, integrated national governance system alongside precise national measurement tools for climate finance and carbon markets. This comprehensive initiative, highlighted during an international workshop in Algiers overseen by Prime Minister Sifi Ghrieb, aims to establish a national roadmap for the 31st session of the Conference of the Parties (COP31). The primary objective is to mobilize essential resources to fulfill Algeria's commitments under the Paris Agreement, aligning environmental responsibilities with national economic development priorities as enshrined in the 2020 Constitution and further supported by the 2023 National Green Hydrogen Strategy and an updated Nationally Determined Contribution.

The proactive approach involves building national capacities for Measurement, Reporting, and Verification (MRV) of greenhouse gas emissions, alongside reinforcing institutional and regulatory frameworks. This includes fostering collaboration among diverse sectors, economic and financial institutions, universities, and research centers, while also integrating international expertise. The Prime Minister underscored the importance of involving the national private sector and domestic financial institutions in climate project funding, coupled with efforts to attract external investments. This vision frames carbon markets not merely as compliance tools but as new economic sectors capable of driving investment, technology transfer, and value creation through measurable emissions reductions, all while safeguarding national economic interests and ensuring environmental integrity.

Algeria maintains its commitment to reduce greenhouse gas emissions by 14% by 2035, with the potential to reach 31% given adequate international support. National economic enterprises, including Sonatrach, are integral to this transition, pursuing decarbonization efforts through solar energy development, the elimination of routine gas flaring, and ambitious goals for zero methane emissions by 2030, alongside carbon capture and green hydrogen development. In a related initiative, Algeria and the United Nations Development Programme signed a cooperation project to enhance Sonatrach's methane emission MRV capabilities and conduct a feasibility study for green hydrogen. Internationally, Algeria advocates for a just and balanced approach that respects national specificities and development rights, reinforcing a strong negotiating position to protect the economies of developing and energy-producing nations, and influencing future climate finance and carbon market mechanisms to reflect the realities and needs of Southern countries, advocating for simplified access to international funds like the Green Climate Fund.