Navigating Carbon Markets? A Workshop on Country Guidance for Saint Lucia

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Organisation of the Eastern Caribbean States (OECS) organized a workshop on “Strategic Pathways for Small Island States in International Carbon Markets” on October 21, 2025. This workshop was held in support of the Caribbean Alliance on Carbon Markets and Climate Finance and hosted by the Government of Saint Lucia.

According to the UNDP (2025), carbon markets are carbon pricing mechanisms which enable governments and non-state actors to trade greenhouse gas emission credits. This would help to achieve climate targets and implement climate actions in a way that optimises cost efficiency. With the operationalization of Article 6 of the Paris Agreement, and the continued evolution of voluntary carbon markets, there is renewed interest among SIDS in exploring how international carbon markets could be leveraged to attract climate finance and incentivize mitigation activities. However, Eastern Caribbean countries also recognize that engaging with these markets—particularly as host countries issuing and transferring carbon credits—requires careful strategic and institutional considerations. Therefore, the workshop was geared to equip countries with the knowledge and frameworks necessary to decide whether market participation aligns with their national interests, capacities, and climate priorities.

Ms. Anita Montoute, Permanent Secretary in the Department of Sustainable Development opened the workshop by explaining: “This meeting comes at an extremely timely moment, considering that Saint Lucia recently convened a government wide consultation on our involvement in Article 6 of the Paris Agreement. We hope that this workshop will pave the way for countries to make concrete and operational decisions on whether and how we should engage in these new and innovative cooperative approaches. In addition, this important meeting will outline necessary requirements to create the enabling environment including institutional arrangements, accounting and reporting. We would like to encourage the technical experts in this room to put mechanisms in place that can strategically place them in a position to better consider and take advantage of opportunities that may come their way.”

The event brought together representatives from Ministry of Finance, Climate Change and other relevant government agencies from six OECS Member States, Belize, The Bahamas, and Jamaica, development partners, and technical institutions to examine strategic options for engaging in international carbon markets under Article 6 of the Paris Agreement. Discussions centred around the advantages of regional action through bundling micro and small-scale mitigation activities, especially in priority sectors such as cooling, renewable energy and blue carbon. The workshop programme included a site visit to two mangrove forests in St. Lucia. The idea of a regional mangrove restoration project has been discussed. This initiative aligns with the objectives of the Marine Health Alliance (MHA).

Ms. Shanna Emmanuel from the OECS Commission elaborated: “This workshop comes at a pivotal time for all Caribbean nations, as traditional sources of climate finance are diminishing amid shifting global priorities. Carbon markets present a vital opportunity for our countries to continue advancing their ambitious climate targets while unlocking innovative financing mechanisms. Through this initiative, OECS Member States will gain the critical knowledge and tools needed to engage with carbon markets in a manner that upholds environmental integrity and supports their own resilience goals and sustainable development ambitions.”

The workshop included presentations from both the seller and buyer perspectives in carbon market engagement. The Bahamas outlined their advancements in developing a legal and institutional framework to enable participation in Article 6 transactions and the KliK Foundation, the European Union, and the Eastern Caribbean Civil Aviation Authority provided valuable insights into buyer expectations.

Dr. Annett Fleischer, Head of the GIZ Caribbean Global Carbon Market project summarized the main achievements of the workshop as follows: “Building on the recently launched document “Country Guidance for Navigating Carbon Markets”, the workshop focused on high-level strategic questions rather than technical implementation details. In doing so, we created a space to explore key participation decisions such as authorization, pricing, and integrity, reflect on institutional readiness and collaboration opportunities and ultimately assess if and how to move forward in this space—collectively or individually. Participants were provided with an increased understanding of carbon market options, identified shared regional needs and capacity gaps, as well as opportunities for regional collaboration and left with a greater clarity on the "go/no-go" decision for Article 6 engagement.”

For further information on the GIZ Global Carbon Project, please reach out to Dr. Annett Fleischer, annett.fleischer@giz.de +1 758 725 5675 or visit the following webpage: www.giz.de.