COMMENT: Russian business must develop its own path towards climate mitigation
The regulation of greenhouse gas emissions in Russia, and the introduction of market-based approaches to environmental issues in general, is still at the embryonic stage of development. Experience suggests there is a high probability of a slow-moving path: from setting up a mandatory MRV system, to imposing emission targets on sectoral basis, progressing to command-and-control enforcement of the targets in parallel with government subsidies for individual emission reduction projects.
Read MoreCOMMENT: China’s ETS – A vote of confidence in carbon markets ahead of Paris
The recent announcement by President Xi Jinping that China will start a national emissions trading scheme in 2017 can be seen as a genuine game changer. It has given a boost to carbon markets and cap-and-trade as the preferred way forward for those economies that have the capacity, the depth and the breadth for a liquid carbon market, writes Andrei Marcu, head of Brussels think-tank CEPS’s Carbon Market Forum.
Read MoreDIALOGUE: Is there a future for international carbon trading?
In the run-up to next month’s climate summit in Paris, all major emitters have submitted INDCs focusing on domestic efforts to cut greenhouse gas emissions. So what are the prospects for international carbon trading?
Read MoreCOMMENT: Marching forward – China is creating the world’s largest market-based carbon pricing system
During his visit to Washington last week, China’s President Xi Jinping confirmed that the world’s largest greenhouse gas emitter, which has pledged to reduce its carbon intensity and reach a peak of overall emissions by 2030, will use a cap-and-trade market approach to help realize this.
Read MoreCOMMENT: Global CO2 market based on current INDCs could see demand of up to 1.9b tonnes
There are currently six nations that intend to use the international markets to meet their INDCs: Ethiopia, Japan, Liechtenstein, New Zealand, South Korea and Switzerland.
Read MoreCOMMENT: Getting to the root of the problem with ERUs – Low mitigation ambition
Some commentators have used SEI’s recent JI study to call into question the use of international emission trading. In this context, it’s important to recognise the fundamental role that weak national mitigation targets played in producing this outcome.
Read MoreNPR REPORT: How are UN climate talks like a middle school? Cliques rule
It seems to be part of human nature to want to belong to a group. People constantly form groups, in all kinds of situations, and high-stakes negotiations on climate change are no exception. Ever heard of the Umbrella Group? Or the Like-Minded Developing Countries? How about the Group of 77? (Here’s a hint — it doesn’t actually have 77 countries.)
Read MoreCOMMENT: Questionable ERUs add woes to farcical New Zealand ETS
In New Zealand, the NZ ETS is the sole instrument used to reduce emissions. About 90% of emissions surrendered in recent years have been foreign Kyoto units, and the flood of these super cheap units effectively inverted the market’s intended function of ‘pricing carbon so as to reduce emissions’ to ‘paying the polluters’ and providing opportunities for a raft of arbitrage scams. The emitters made money and the environment missed out.
Read MoreCOMMENT: CMIA policy paper on the EU ETS, MSR and Phase IV
CMIA welcomes the improvement which the Market Stability Reserve has brought to the EU ETS … However, we are disappointed that, even with the MSR in place, the amendment proposed by the Commission on 15 July 2015 will not fulfil several aspects of the mandate given by the Council in October 2014.
Read MoreDIALOGUE: JI casts a long shadow, but does it have redeemable features?
The UN’s Joint Implementation (JI) has long been subject to criticism over its environmental integrity and may have been dealt a knock-out blow by a study this week that found almost three-quarters of its carbon credits may not represent emission reductions.
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