Carbon Policy and Markets
This module looks at the different climate policy options for putting countries on a low-carbon growth path. It explores domestically focused policies, as well as market mechanisms linked to the international carbon market.
The following aspects are covered:
- Policy instruments for climate mitigation:
- An overview of existing and available policy tools
- Choice of policies to address different objectives and sectors
- How to best combine policy instruments
- Introduction to carbon market mechanisms:
- Today’s global carbon market – characteristics and key players
- Domestic market mechanisms for reducing greenhouse gas emissions and how they work - cap-and-trade, certificate schemes
- Principal international market mechanisms and how they work - CDM, JI
- Future outlook of the carbon market - sectoral mechanisms, NAMA crediting
- Carbon market readiness:
- Domestic market framework and mechanisms and ways to access the international carbon markets
- Technical, policy and institutional requirements for establishing domestic or international market mechanisms
Why is this topic important?
Carbon markets are relatively new and evolving rapidly, and therefore can be challenging to understand. Countries pursuing low-carbon growth face many choices concerning policy options and how to combine them. Distinguishing which choices will be the most fruitful at the national level is key, as is the ability to enter and benefit from the international carbon markets.
IEA’s credentials – why learn from us?
For over a decade, the IEA has analysed emissions trading and carbon markets, including the links between energy security and climate policy, the consequences of uncertain policy on investment, and the various strategies used for different sectors that have successfully reduced emissions. The Agency actively contributes to the United Nations Framework Convention on Climate Change (UNFCCC) process, providing up-to-date commentary on developments and their implications.
Who will benefit from this module?
This module is targeted at
- Government officials in charge of formulating climate policies
- Private or public sector entities subject to GHG reduction policies (voluntary or binding), and in particular those with an interest in using international carbon markets in reaching their goals
- Financial sector players interested in entering the international carbon markets
What will participants gain?
After attending this course, participants will have a general understanding of making climate policy choices and structuring strategies for moving towards a low-carbon economy. In particular, the module will prepare policy makers for considering market-based mechanisms and accessing international carbon markets. It will provide best practice examples from developed countries that have been through several cycles of climate policy developments.