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What prospects for the global carbon market after COP26?

FSR Debates

Add to calendar 2021-12-09 14:00 2021-12-09 15:30 Europe/Rome What prospects for the global carbon market after COP26? Zoom YYYY-MM-DD
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When

09 December 2021

14:00 - 15:30 CET

Where

Zoom

The part of the Paris Agreement Rulebook meant to implement Article 6 provisions has just been agreed at COP26. However, many questions, to be discussed in the FSR Debate, remain.

Taking place only a few weeks after the UN Climate Conference in Glasgow COP26, this FSR Debate will review the outcome of the conference and discuss the implications of the progress made, or lack thereof, for the development of the global carbon market.

Background

Parties to the Paris Agreement can use different instruments for trading emissions reductions at the international level through several mechanisms established by Article 6 of the Paris Agreement. Article 6.2 allows countries to develop decentralised cooperative approaches under which they could trade mitigation units, so-called Internationally Transferable Mitigation Outcomes (ITMOs), to reach their own Nationally Determined Contributions (NDCs). Article 6.4 opens the possibility to set up a new UN centralised mechanism to trade emissions reduction credits related to specific sustainable development projects. Article 6 also provides the opportunity further to account for international cooperation and integration of non-market approaches.

The development of Article 6-compatible carbon markets could allow countries to achieve net-zero targets with greater economic efficiency, increased economies of scale, and further financial cooperation. According to a recent study from the International Emissions Trading Association and the University of Maryland, the market value of financial flows between countries could potentially exceed $1 trillion per year in 2050.

The part of the Paris Agreement Rulebook meant to implement these Article 6 provisions has just been agreed at the COP26 in Glasgow. However, many questions, to be discussed in the FSR Debate, remain. What are the prospects for international carbon markets? Will this new Rulebook stimulate the possibility of moving toward a global carbon market? Or does it contain loopholes that could harm the environmental integrity of the mechanisms? What could governments do to ignite the global carbon market?

Programme

The event will be moderated by Alberto Pototschnig and Simone Borghesi from the Florence School of Regulation.

 

Introduction to the Debate and Opening Presentations

14.00 – 14.05   Introduction to the Debate

Ilaria Conti | Florence School of Regulation

14.05 – 14.15   Opening address

Representative from DG Climate Action, European Commission*

14.15 – 14.25  ETS Alignment: possible reforms for integration

Stefano Verde| Florence School of Regulation

 

Panel Discussion: Introductory Remarks, Polls and Comments

14.25 – 14.50 Introductory remarks from the panellists

Kelley Kizzier | Environmental Defense Fund

Luca Lo Re | International Energy Agency

Billy Pizer | Resources For Future

14.50 – 14.55  Polls

14.55 – 15.20  Comments on the outcome of the poll and Q&A from the audience

Panellists

15.20 – 15.30  Concluding remarks

Simone Borghesi | Florence School of Regulation

Alberto Pototschnig | Florence School of Regulation

 

*invited speaker to be confirmed

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