Issue: 24 2019年11月27日, 星期三
Dear ,
All eyes in the world of climate policy will soon be on Madrid, where COP25 is set to begin on 2 December 2019. In addition to formal negotiations including on the Paris Agreement’s Article 6, which has major implications for international carbon pricing, individuals and organizations from around the world will come together in Madrid to discuss key issues on the global climate agenda. ICAP will be among them, co-hosting four events focusing on various aspects of ETS and carbon pricing as a key element toward deep decarbonization.
Below you will find an overview of the events we will be co-hosting in Madrid as well as a summary of the latest developments in emissions trading around the world and an update on ICAP activities. For more information on cap-and-trade programs in force and in the works around the world, please visit the ICAP Interactive ETS Map. It is updated regularly as new information becomes available. For the latest ETS prices please visit ICAP’s Allowance Price Explorer. In case you missed it, we also launched a new research tool in its beta phase. The ICAP ETS Library offers a comprehensive reference database on emissions trading and makes sources searchable with filters tailored to the needs of policymakers, researchers, and civil society.Kind regards,
ICAP is co-hosting a number of COP25 side events on carbon pricing from 3-6 December in Madrid with a range of partners. Check out the full listing and details below!
Date: 3 December 2019Time: 13:00-14:30Location: UK Pavilion Driving further power sector decarbonization cost-effectively will require policymakers and the private sector working together. This event will bridge policy and market perspectives, discussing how power sector regulations and carbon pricing mechanisms interact and can be aligned to ensure a cost-effective decarbonization of the power sector. A key focus will be keeping these efforts in line with the Paris Agreement while safeguarding the reliability and affordability of electricity systems in transition. The event is co-hosted by the International Energy Agency (IEA) and the World Bank’s Carbon Pricing Leadership Coalition (CPLC). William Acworth, Senior Project Manager at ICAP, will moderate the discussion.Speakers:• Luca Lo Re, Climate Policy Analyst, IEA• Hugh Salway, Head of Global Carbon Markets, UK Department for Business, Energy & Industrial Strategy (BEIS)• Marta Martinez, Head of Studies, Chairman’s Area, Iberdrola • Ana Quelhas, Director of the Energy Planning Department, Energias de Portugal (EDP)• Representative from California, the Regional Greenhouse Gas Initiative (RGGI), or the Republic of Korea (TBD)• Helen Mountford, Co-Chair, CPLC (TBC)
Date: 4 December 2019Time: 12:30-14:00 Location: Brussels Room of the EU Pavilion Carbon pricing policies significantly reduce mitigation cost and unlock economic opportunities of the low-carbon transition, which makes them a key mechanism for achieving and scaling up Nationally Determined Contributions (NDCs) under the Paris Agreement. This event explores that potential from a variety of perspectives.Event co-host the World Bank Group will draw from its headline publication “The State and Trends of Carbon Pricing” to provide a global perspective on recent progress on carbon pricing as well as the challenges ahead. Policymakers from jurisdictions operating ETSs will provide an update on key developments in their systems, with a focus on what can be learned for jurisdictions considering adopting carbon pricing. Finally, the International Emissions Trading Association (IETA) will provide a business perspective on the importance of carbon pricing in creating a credible policy framework for the low-carbon transition. The event will be moderated by Constanze Haug, Head of Secretariat at ICAP. Speakers:• Dirk Forrister, President and CEO, IETA• Venkata Ramana Putti, Program Manager, World Bank• Beatrice Yordi, Director European and International Carbon Markets, DG Climate Action, European Commission (TBC)• Dirk Weinreich, Head of Division Emissions Trading, German Federal Ministry for the Environment• Prof. Duan Maosheng, Director of China Carbon Market Center at Tsinghua University• Lisa DeMarco, Senior Partner, DeMarco Allan
Date: 5 December 2019Time: 15:00-16:30 Location: Room 1 of the official UNFCCC Pavilion Emerging economies are seeing a growing interest in and use of carbon pricing. This event will provide an overview of carbon pricing in emerging economies (e.g. Mexico, China, Colombia, South Africa); aspects of policy choice between ETSs and carbon taxes; options to address concerns about competitiveness of domestic industries; and discussions on how to create domestic support for carbon pricing. The event is co-hosted by the Mexican government and the Corporacion Andina de Fomento, a Latin American development bank. Constanze Haug, Head of the ICAP Secretariat, will moderate the discussion. Speakers:• Constanze Haug, Head of ICAP Secretariat • Government representative from Mexico (precise speaker TBD)• Green Climate Fund (precise speaker TBD) • George Marshall, Climate Outreach• Mandy Rambharos, government of South Africa (schedule permitting)• Olga Yukhymchuk, government of Ukraine (TBC)
Date: 6 December 2019Time: 11:30-13:00 Location: Benelux PavilionGHG neutrality will require steep emissions reductions from industries that are difficult to decarbonize and compete internationally with firms that may not face similar carbon costs, giving rise to concerns about carbon leakage in jurisdictions that have implemented carbon pricing. This event will take a fresh look at the issue of competitiveness and carbon leakage, examining its relevance and magnitude in the context of the Paris Agreement goal to achieve greenhouse gas neutrality by mid-century. We will discuss the appropriateness of existing leakage mitigation provisions in the medium to long term as well as alternative options for carbon leakage protection, including border carbon adjustments and innovative policy solutions that can be combined with carbon pricing to drive decarbonization. The event is co-hosted by the World Bank’s Carbon Pricing Leadership Coalition. Speakers:• William Acworth, Senior Project Manager, ICAP• Helen Mountford, Co-chair, Carbon Pricing Leadership Coalition (TBC)• Éric Théroux, Assistant Deputy Minister, Quebec Ministry of the Environment• Royal DSM (exact speaker TBD) • Philippe Wen, Deputy Head of Unit, Climate, Environment, and Agriculture, French Ministry of Economy and Finance Directorate General of the Treasury
On 21 October 2019 the Republic of Korea announced reforms for phase III of the Korean Emissions Trading Scheme (KETS), including a tighter cap and changes to allocation. The changes were announced as part of the Second Framework for Response to Climate Change and signal increased ambition for the third phase of the ETS, which will run for a five-year period from 2021 to 2026. Foremost, Korea announced a stricter emissions cap that will be in line with reaching its 2030 GHG emissions target of 536 MtCO2e (compared to 709 MtCO2e in 2017). See the ICAP website in the coming days for the full update.
The New Zealand government has reached consensus with the agriculture sector to foster on-farm emissions reductions and work towards implementing farm-level pricing by 2025. The agreement to price agricultural emissions marks not only a turning point for New Zealand’s climate policy but will may set a precedent for domestic carbon pricing worldwide.Livestock emissions, which include methane and nitrous oxide from livestock farming, will be priced through a farm-level levy/rebate scheme starting 2025. Synthetic nitrogen fertilizers will be priced at the producer/importer level starting in 2025. Fertilizer is being treated differently from livestock emissions because there are currently no measurable farm- specific practices to reduce emissions other than to use less.Read more...
On 30 September 2019 the Chinese Ministry of Ecology and Environment (MEE) released a trial plan for allocating emissions allowances to the power sector. This plan is expected to be the basis for further refinement of the allocation plan rules for the upcoming simulation phase of the Chinese national ETS. The trial plan includes two allocation schemes which are identical in most respects but differ in their benchmarks. It was attached to a notice of training for allowance allocation and management by MEE that covers national climate policy, data reporting, compliance management, the registry system, and other aspects. As scheduled in the Work Plan for Construction of the National Emissions Trading System (Power Sector), simulation trading in the national Chinese ETS is expected to begin around the end of 2019, with the deepening and expanding phase starting approximately one year after the simulation period is launched. Read more...
On 1 October 2019 the Mexican Ministry of Environment and Natural Resources (SEMARNAT) published final regulations for the pilot phase of the national ETS, the first in Latin America. The pilot will last three years and will start on 1 January 2020.The pilot is designed to pose no economic impact on regulated entities, which means that there will be no monetary sanctions for non-compliance. However, it will help test system design and identify the need for adjustments after 2022; allow participants to familiarize themselves with emissions trading and develop essential capacities; and generate an indicative value for emission allowances and offsets for the operational phase beginning 2023.The cap will be published by 1 December 2019 along with allowance allocations at the facility level. These elements will be prepared using the historical emissions reported in the National Emissions Registry (RENE) and will align with the Nationally Determined Contribution (NDC) sectoral mitigation targets established in the General Law of Climate Change. The final version of the regulations is very similar to the draft regulations released on 25 May 2019 for public consultation.
On 3 October 2019 Pennsylvania’s Democratic Governor Tom Wolf signed an executive order directing the Pennsylvania Environmental Quality Board (EQB) to develop a proposal for an ETS covering CO2 emissions from the electric power sector and its linkage to the Regional Greenhouse Gas Initiative (RGGI) by 31 July 2020. The move aims to bypass the Republican-controlled state legislature, which opposes carbon pricing and has asserted any ETS must be approved by lawmakers.The executive order comes after Pennsylvania’s Department of Environmental Protection (DEP) recommended the implementation of an ETS for the power sector in April 2019 and the EQB approved a petition of over 200 businesses, organizations, and individuals to introduce an economy-wide cap-and-trade program in the state. With Pennsylvania joining RGGI, the initiative’s carbon market would increase significantly, as Pennsylvania’s power sector emissions (78 MtCO2 in 2017) are higher than the collective emissions output of all RGGI states (58.9 MtCO2 in 2017).
On 30 September 2019, ten northeast and mid-Atlantic US jurisdictions of the Transportation and Climate Initiative (TCI) released a draft framework outlining basic design features of a regional transport sector ETS starting in 2022. The framework is part of a design process that has included public workshops, webinars, and expert consultations as well as technical, environmental, and economic analyses.The framework is now open to public comments until 5 November 2019. Additional details on the features of the proposed ETS as well as further modelling results of the environmental and economic implications of different cap levels and investment scenarios will then be released as part of a draft memorandum of understanding (MOU). The MOU is expected to be signed by all participating member states by the end of 2019.The framework includes general information on participating sources, compliance and enforcement requirements, flexibility and cost containment mechanisms, and provisions for the use of revenue. Further program details such as the cap and the decline factor are yet to be decided.
On 19 September 2019 the California Air Resources Board (CARB) approved the Tropical Forest Standard (TFS), a set of criteria intended to serve as a model for assessing offset crediting programs that reduce emissions from deforestation.California has been considering how offsets from tropical forestry might be used in a market-based program for about a decade. The move paves the way for national or subnational jurisdictions to link forestry offsets to California’s Cap-and-Trade program as well as other mandatory and voluntary markets around the world, although CARB would still need to approve their use for compliance in the system on a case-by-case basis. CARB has explicitly cited the potential for TFS-aligned programs to supply the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).TFS marks the first government-enacted international standard that applies to large, sector-based tropical forestry programs at the jurisdictional level. California officials have stressed TFS’ wide applicability by setting minimum requirements for a robust, replicable model to serve GHG mitigation programs, as well as sustainable commodity supply chains and other initiatives.
On 20 September 2019 the German government released the cornerstones of its Climate Protection Program 2030, a package of measures to reach its 2030 climate targets that includes a CO2 pricing mechanism for fuels used in the building and transport sector starting 2021.The carbon pricing mechanism will come in the form of a national ETS with a fixed price per tCO2 in the first phase followed by a minimum and maximum price per tCO2 in the second phase. Since GHG emissions from Germany’s energy, industry, and domestic aviation sectors are already covered by the EU ETS, the introduction of the national ETS will lead to all major sectors in Germany facing a CO2 price by 2021.
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