Amid the celebrations after the Paris climate agreement, few diplomats or politicians talked much about carbon markets or pricing.
But as the euphoria died and the focus turned to delivering fast cuts to greenhouse gas emissions, penalties for pollution are becoming an attractive quick-fix solution – especially if the funds generated can be directed towards clean energy and protecting forests.
Article 6 of the Paris deal offered the potential of an international carbon market in the future, with regional and national schemes steadily converging under a global framework.
Prices for carbon remain low, but these markets are expanding. According to the World Bank 40 national and 23 sub-national governments are now pricing carbon pollution.
The EU’s emissions trading scheme is well-established. South Korea launched its market in January. China plans to open a national ETS in 2017.
Canada, California, Massachusetts, New Hampshire and New York participate in regional initiatives. Chile and Ethiopia added their backing to calls for a global price last December.
On Wednesday Mexico, Quebec and Ontario announced plans to cooperate on linking their domestic markets.
And in October countries will decide at the UN’s International Civil Aviation Organisation (ICAO) on a new market-based approach to tackle fast-growing aviation emissions.
On 21 September representatives from the World Bank, North and Latin American regional government plus leading investors will gather in New York to discuss the potential for pricing carbon.
Climate Week 2016
The conference, organised by Responding to Climate Change and the World Bank, will cover the pros and cons of different carbon price revenue options, drawing on real-world experiences from countries and states already running markets.
We’ll hear from World Bank chief Jim Kim,a strong supporter of a price on carbon and a vocal champion of tougher climate action.
The conference will also hear from business leaders who are driving climate innovation, and discuss how future climate-smart industries will develop by 2020.
Check the RTCC website for more details of how you can attend.