1 / 16

Greenhouse Gas Markets

Exploring the Challenges and Opportunities for Establishing a North American Emissions Trading System November 14, 2007, Chicago, IL Kate Zyla World Resources Institute. Greenhouse Gas Markets. Cap-and-Trade Markets Currency: Allowances GHG emissions capped by total number of allowances

moira
Télécharger la présentation

Greenhouse Gas Markets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Exploring the Challenges and Opportunities for Establishing a North American Emissions Trading System November 14, 2007, Chicago, IL Kate Zyla World Resources Institute

  2. Greenhouse Gas Markets • Cap-and-Trade Markets • Currency: Allowances • GHG emissions capped by total number of allowances • SO2 and NOx model • Carbon Offset Markets • Currency: Credits • GHG reductions purchased from uncapped sources • Which Work Together… • Credits may be bought and used as allowances under most GHG cap-and-trade systems

  3. Greenhouse Gas Markets

  4. Greenhouse Gas Markets • Large and growing… • EU ETS valued at $24 billion in 2006 • Kyoto Protocol offset market: $5.5 billion • Voluntary offset market: $100 million • Chicago Climate Exchange: $38 million * World Bank, 2006 Data

  5. Carbon Offset Markets • Hitting stride, led by CDM… Source: World Bank / IETA, State and Trends of the Carbon Market 2007

  6. North American Compliance Offset Markets • Current Programs: • Climate Trust • Alberta • Numerous Others Contemplated or Under Development: • Regional Greenhouse Gas Initiative • California / Western Regional Offset Program • British Columbia • Manitoba • Ontario • Canadian Domestic Offset Program • U.S. Federal?

  7. Voluntary Offset Markets • Current transactions around 10 million tons per year and growing* • Valued at close to $100 million* • Projected potential volume of 400 million tons ca. 2012? * World Bank / IETA 2007

  8. CDM Already a Common Compliance Currency RGGI: link if price hits $10/ton California: link contemplated EU ETS: Linking Directive CDM U.S. Federal: links contemplated Australia NETS: link contemplated

  9. CDM Also Underpins the Voluntary Market • CDM Gold Standard • Voluntary Carbon Standard • ECIS Standard • VER+ Standard • 3C VER Standard • CCB Project Design Standards • UK & Norway “Best Practice” Standards • Others

  10. But This Doesn’t Mean Full Harmonization… • Current links are all one-way, unilateral • No links (yet) between non-CDM offset programs and standards • Significant differences exist among programs on: • Accounting & Additionality Standards • Monitoring & Verification Standards • Registry & Enforcement Systems

  11. Why Harmonize Offsets? • Reduce search costs for buyers • Reduce transaction costs for sellers • Establish common currency—first step towards future integration of emissions markets

  12. The Challenge: Different Priorities for Offsets • Low-cost reductions that reduce overall compliance costs (and/or allow more ambitious emissions targets) • Reduction opportunities in sectors difficult to cap • Secondary social, economic, environmental objectives (co-benefits) • Political constituencies

  13. Standardizing Offset Markets • Project eligibility rules • Types of allowable projects • Geographic locations of projects • Offset accounting rules • Real, quantifiable, permanent, additional, etc. • Standards-based vs. project-specific • Setting baselines • Leakage

  14. Standardizing Offset Markets, cont. • Monitoring and Verification Procedures • Accuracy, frequency • Qualifications of verifiers • Registries and Administrative Systems • How much project information is disclosed • Fair amount of harmonization possible—single institution?

  15. Possible Ways Forward: Key questions • Are rules and requirements of existing North American offset programs similar enough that linking and/or integration seem feasible? • How can programs whose rules are still being considered coordinate efforts with existing programs? • To what extent should North America rely on and/or recognize credits generated under other (international) offset programs? • Are there existing institutions that could provide a common registration/admin system?

  16. Standardizing Offset Markets • Project eligibility rules • Types of allowable projects • Geographic locations of projects • Offset accounting rules • Real, quantifiable, permanent, additional, etc. • Standards-based vs. project-specific • Monitoring and Verification Procedures • Accuracy, frequency • Qualifications of verifiers • Registries and Administrative Systems • How much project information is disclosed • Fair amount of harmonization possible—single institution?

More Related