Climate Change and Carbon Market Initiatives Act, 2022
1. To enable the Government to create incentives and implement initiatives to support the overall global target of greenhouse gas emissions reduction consistent with its Nationally Determined Contributions;
2. To ensure compliance by The Bahamas of its obligations under the Paris Agreement;
3. to enable the establishment of a market in The Bahamas to trade in carbon credits.
This Act applies to carbon credits in respect of land and airspace of The Bahamas, including its internal waters, territorial waters and exclusive economic zone; the seabed and subsoil underlying these waters; its continental, coastal and marine ecosystems and related water; and its forests.
Part II sets out the administration of the Act. The responsibility for the administration of the Act is distributed, with distinct responsibilities, between the Prime Minister, the Minister of Finance, and the Minister for Environment. This part sets out the appointment and functions of management companies, as well as the appointment and functions of an Advisory Council.
Part III outlines the fundamental principles governing trade in carbon markets. Mentioned are:
- Additionality, measurability, permanence, etc.;
- Prohibition against double counting;
- Verification and validation;
- Provision of social and environmental benefits;
- Share of proceeds and cancellation rates.
- Minister may make regulations to further the fundamental principles governing trade in carbon markets.
Part IV delineated the obligations of the Bahamas under the Paris Agreement.
Part V concerns the creation and implementation of initiatives to reduce emissions, which the Prime Minister may undertake to comply with the Paris Agreement.
Part VI provides an overview for the options for participation in the carbon market in The Bahamas. There are three:
1. Bilateral or multilateral trading agreement;
2. As a result of trading with a private entity;
3. In a voluntary carbon market.
Part VII establishes a National Emissions Registry.
Part VIII concerns miscellaneous.