Episode 13: Scope Expansion of ETS: Design and Policy Challenges, with Dr. Theresa Wildgrube
In this episode of ICAP’s Carbon Market Conversations, host Trevor Laroche-Theune sits down with Dr. Theresa Wildgrube (ICAP Senior Carbon Market Expert) for a behind-the-scenes conversation on ICAP’s recently published paper Scope Expansion of Emissions Trading Systems: Design and Policy Challenges, co-authored by Trevor, Theresa, and Andrés Olarte. As emissions trading systems continue to mature and expand across the globe, a growing number of jurisdictions are asking what comes after launch, and for many, the answer involves broadening or deepening the scope of their ETS. This episode walks through the paper's core findings: the concrete design challenges jurisdictions face when expanding ETS boundaries, and the political and policy dynamics that shape whether expansion happens at all, and how. Drawing on conversations with ICAP members actively navigating these questions, Theresa and Trevor reflect on the process of developing this work and the conclusions of the research.
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Breakdown of topics covered:
0:55 – Introduction to today’s topic and our guest
3:00 – Why a paper on scope expansion of ETS is particularly relevant at this time
4:25 – Scope and structure of the paper
5:50 – Broadening vs. deepening classifications and examples of scope expansion
6:55 – Design vs. policy challenges
8:45 – Discussion of design-side challenges and cases including considering design effects on existing covered entities and how to prevent double regulation
11:40 – Discussion of policy-side challenges and cases including political opposition from multiple angles and price effects on existing covered entities
17:40 – The role of clear and careful planning
19:35 – The importance of early implementation of MRV infrastructure
20:20 – Benefits of stakeholder consultations
21:40 – Upcoming ICAP work on ETS scope expansion
23:10 – Closing remarks
You can read the full ICAP paper Scope Expansion of Emissions Trading Systems: Design and Policy Challenges here.
