Abstract
The findings and opinions expressed herein do not necessarily reflect the views of the partnering organizations and of their member countries.This note examines how to maximize the benefits from the use of market instruments in support of developing countries' low-emission development priorities.First, it briefly surveys the current state and trends of the carbon market, highlighting the main achievements of carbon finance over its decade-long history.Second, it reviews updated scenarios of the scale of future carbon markets and associated financial flows, in light of developments in climate negotiations and domestic markets.Finally, it identifies the necessary steps to scale up carbon market flows in future, on both the demand and supply sides, including the reform of existing mechanisms, and innovation to broaden the scope, scale and reach of carbon markets.