Carbon pricing must be clearly referenced in the global climate pact to be signed in Paris and details on a global market-based system must be outlined in subsequent years, according to Morocco’s Hakima El Haite, who will likely steer the UN summit to be held next year in her home country.

“The carbon market must be a priority in the transition to a green economy,” said told the Green Growth Summit at the European Parliament in Brussels on Thursday.

“A global carbon pricing system should be clearly indicated in the Paris agreement and further defined on the road to 2020,” she said.

In its INDC submitted in June, Morocco said it was open to using international carbon markets to achieve its 2030 GHG reduction goals, which included an unconditional target to cut by 13% below BAU levels, and a conditional one to cut by a further 19% based on receiving financial assistance.

PRICING ESSENTIAL

Observers are divided on whether having a direct market reference is needed for the Paris agreement.

Speaking later in Thursday’s meeting, the EU’s top climate official Jos Delbeke said “the role of carbon pricing is essential” in the global climate effort, and the EU ETS and other climate policies were being followed by others.

“Our legislative and technological drive is being followed throughout the world. I’m very hopeful and very hopeful (about the INDCs), and basically why – in view of Paris – we are going to see a major change in policies (worldwide),” he said.

Of the EU ETS, he added: “The fact there is a price is very important because everyone expects the price to be higher in the future.”

He touted both the Commission’s proposed Innovation Fund, which he said could raise €5-10 billion through selling EU Allowances next decade, and its Modernisation Fund to drive energy sector upgrades in the poorer eastern European countries.

By Ben Garside – ben@carbon-pulse.com