The International Energy Agency (IEA), International Emissions Trading Association (IETA) and Electric Power Research Institute (EPRI) hosted the 16th Annual Greenhouse Gas Emissions Trading Workshop on October 18-19 in Paris.
Each year this invitation-only workshop brings together over one hundred senior officials from OECD countries, the European Union and other nations, corporate executives from electric companies, energy-intensive industries, brokerage companies and the financial community, analysts and researchers from non-governmental organisations and academia, to discuss developments in GHG emissions trading and related issues around the world. The workshop combines presentations based on recent research with interactive discussions, held under the Chatham House rule.
Workshop Overview and Introductions
Kamel Ben Naceur International Energy Agency (IEA) Dirk Forrister International Emissions Trading Association (IETA) Tom Wilson Electric Power Research Institute (EPRI)
Session 1: Paris Agreement – International trading to achieve and surpass NDCs
The Paris agreement creates new momentum for carbon markets, allowing for voluntary use of international carbon trades toward achievement of (or to go beyond) the national targets set in Nationally Determined Contributions (NDCs). This session will unpack provisions relevant to carbon markets in the Paris Agreement, exploring different perspectives on the interpretation and implications of the agreement for bottom-up development of carbon markets.
Session 2: Carbon Markets in Asia-Pacific: Updates and Next Steps Post-Paris
This session will explore in detail carbon markets in the Asia-Pacific region, including an update on the status of China’s national ETS implementation (2017) as well as the seven ETS pilots. Presentations will provide a status update of the respective policies, and will be followed by a roundtable discussion on the current challenges each system faces and next steps with respect to Article 6 of the Paris Agreement and implementation of the NDCs.
Session 3: European Union Emissions Trading System – Current Challenges and Future Prospects
This session will provide a brief overview of the EU ETS and identify the challenges that need to be addressed in the coming years. The session will explore to what extent the EU ETS, together with other existing market signals, can drive cost‐effective investment in low‐carbon technologies and the gradual phase-out of existing thermal capacity. Presentations will address one or more of these challenges from their perspective.
Session 4: Paris Agreement – Article 6.4 Mechanism
A new market mechanism is to be established by the UNFCCC under Article 6.4 of the Paris agreement, building on experience gained with existing mechanisms including the CDM and JI. This session will explore the expected form of this new mechanism, and the process by which it will be developed.
Session 5: Aviation Update
The International Civil Aviation Organisation (ICAO) has agreed on a global market-based-measure to offset global aviation emissions beyond 2020 levels. This session will clarify what has been agreed in ICAO, and what the consequences are for aircraft operators, as well as for the demand for offset credits. In addition, the session will discuss the political considerations surrounding this global agreement, in light of the EU’s and other regions’ approaches to covering “domestic” aviation emissions in regional emissions trading systems.
Michael Gill Air Transport Action Group (ATAG) Reactions from: Laurence Graff European Commission David Antonioli Verified Carbon Standard
Session 6: Evolution of GHG Emissions Trading in North America
Across North America, regional GHG emissions trading programs are rapidly evolving and are expanding their footprint. Will these subnational programmes evolve into larger regional efforts through linking or do they provide the underpinnings of possible national ETS in the coming years? Sub-national efforts to develop and implement GHG markets in Ontario, Manitoba, as well as continued market evolution in CA and the RGGI states will be impacted dramatically in the coming years by the uncertain implementation of President Obama’s Clean Power Plan. This session will highlight key recent developments in new GHG emissions trading programmes in the United States, Canada and Mexico.
Session 7: Closing - Linkages and Carbon Clubs
Economic analysis shows benefits and costs to linking carbon markets and developing carbon clubs. This session will discuss the benefits of trading and linking, and the considerations to take into account when linking carbon markets. The panel will share their experiences from around the world on their recommendations and lessons learnt about linking carbon markets or creating regional carbon clubs.
Dirk Forrister IETA Tom Wilson EPRI Dave Turk IEA