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  • 18 Sep 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, press@ieta.org

    IETA welcomes European ministers’ support for markets in 2015 climate agreement

    BRUSSELS, 18 September – Commenting on the European Environment Ministers’ council conclusions relating to the Paris agreement, IETA’s Director of International Policy Jeff Swartz says:

    “IETA is encouraged that the European Environment Council has given a clear mandate for Europe to negotiate a role for market mechanisms in the Paris agreement. Market mechanisms are one of the few tools in the architecture of the Paris agreement that will maximise the innovation and ‘can-do’ spirit of the private sector in reducing greenhouse gas emissions globally.

    “The absence of clear provisions on market mechanisms in the agreement would lead to less ambition by the numerous countries which seek carbon reduction abatement opportunities outside of their domestic borders. It would also send a signal to the private sector that the UN process has failed in its attempts to put a price on carbon.

    “Europe’s mandate to its climate negotiators to include markets in the 2015 agreement is a positive signal ahead of the next meeting in October to progress the text before the world gathers in Paris this December to finalise the agreement.”
    About IETA: IETA is the voice of business on carbon markets around the world. Established in 1999, IETA's members include global leaders in the oil, electricity, cement, aluminium, chemical, technology, data verification, broking, trading, legal, finance, and consulting industries.



  • 27 Aug 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Sarah Deblock, deblock@ieta.org

    GENEVA, 27 August – IETA calls on policymakers to advance talks on mitigation strategies and cooperative mechanisms for the Paris agreement, including the role of markets, as negotiators prepare to meet from 31 August until 4 September in Bonn, Germany.  

    Economists and businesses alike recognise that broad international market linkages can lower costs, improve competitiveness and bolster deployment of advanced technologies.  A study1 by the Harvard Project on Climate Agreements last year suggested that simple references to encourage carbon market integrity with good accounting of imports and exports could help support future development of market linkages, strengthening the ability of nations to pursue a 2°C level of climate protection. 

    This concept is being demonstrated this year, as a number of countries stated in their Intended Nationally Determined Contributions (INDCs) for the Paris agreement that international market mechanisms are crucial to meeting their mitigation goals, be it through acquiring credits or receiving vital investment in low-carbon technologies to develop sustainably. Importantly, some INDCs specify  the minimum that the country can achieve domestically, and how much more could be realised with links to international markets and finance.

    “There has been slow progress on the mitigation and market aspects of the negotiations so far,” says IETA CEO & President Dirk Forrister. “With only 10 more official negotiating days before Paris, it’s time to step up the pace on this crucial component of the agreement. Good carbon accounting and markets are joined at the hip with climate change mitigation – if we have no progress on markets and accounting , we’ll have no real progress on mitigation.” 

    He adds: “We urge negotiators to speak up at Bonn about how access to markets can help achieve mitigation goals in INDCs.  In fact, countries can achieve more mitigation, more quickly and at a lower cost if there is clarity on market mechanisms.”

    Next week’s talks will be the first since the release of a streamlined negotiating text2 last month. While welcoming steps to consolidate the text, IETA remains concerned that there is scant detail on approaches to mitigation, use of markets and transparent emissions accounting. IETA's detailed reaction to the streamlined text was published yesterday here

    “There is definitely scope to put a hook for markets in the mitigation part of the text,” says Jeff Swartz, IETA’s Director of International Policy. “For example, the language on implementing decisions jointly could be expanded to make mention of a unified transfer system such as that proposed in IETA’s Straw Proposal3.” 

    “The private sector has been waiting for a signal that market mechanisms will be recognised in the Paris agreement so that it can begin to plan and make investments now for a cleaner future,” adds Swartz. “Next week’s talks are a good opportunity to provide that signal.”


    NOTES
    1 The study, prepared in cooperation with IETA, was released in full at COP20 in Lima, Peru
    2 The streamlined negotiating text is available on the UNFCCC website
    3 IETA’s Straw Proposal has been revised to reflect the language of the Geneva negotiating text


    Please download this press release here.

  • 03 Aug 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Tom Lawler, lawler@ieta.org

    WASHINGTON DC, 3 August – IETA welcomes the Clean Power Plan’s embrace of emissions trading, offering a low cost solution to meeting the plan’s goals. 

    Alongside the release of the final Clean Power Plan (CPP) rule, the US Environmental Protection Agency (EPA) released a proposed federal plan and model trading rules. The federal plan would apply to states that do not have their own provisions to comply with the Clean Power Plan. The model trading rules are designed to assist states wishing to adopt a trading system to comply with the CPP. The proposals are open for public comment for 90 days.

    “IETA welcomes steps to enhance trading among states as part of the Clean Power Plan,” says IETA CEO & President Dirk Forrister. “Such a flexible approach to compliance can help reduce costs for business and consumers while still meeting environmental objectives – as well as introducing a price signal and incentives for clean investments.”

    “The US is not alone in employing this method to cut emissions; emissions trading systems are already in place in China, the EU and South Korea, as well as 10 US states, with more in development around the world,” he adds. “Absent Congressional legislation, this is the next best option, and we look forward to engaging with the EPA as it seeks to finalize the federal plan.”

    “Coupled with the proposed model trading guidelines, we look forward to seeing robust carbon markets developing throughout the US,” says Tom Lawler, IETA’s Washington, DC representative. “IETA will focus on working with our members and states over the coming months to further improve the trading guidelines and the federal plan. With these tools, the goals of the Clean Power Plan can be met at the lowest cost.”

    Further information on the Clean Power Plan can be found on the EPA's website

    Please download this press release here.

  • 27 Jul 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, Kouchakji@ieta.org

    GENEVA, 27 July – Commenting on the release of the consolidated version of the Geneva negotiating text, to guide negotiations towards an international climate change agreement in Paris at the end of this year, IETA’s CEO and President Dirk Forrister says:

    “We welcome efforts to streamline and consolidate the negotiating text – especially as there are only 10 more official negotiating days before the Paris conference. As governments prepare to meet in late August for five days of talks, we urge them to turn more attention to international market mechanisms that deliver carbon price signals which stimulate climate action by business.

    “However, we remain concerned at the lack of clarity on the use of markets and tools to accelerate links between systems, such as common accounting rules and project crediting mechanisms. For the past year, the private sector all around the world has voiced strong support for policies that put a price on carbon, because they give economic signals about the value in reducing emissions. Enabling links between existing and future markets would lead to faster emissions reductions at even lower cost, allowing countries to go further while keeping costs down. We urge negotiators to move these elements into the agreement or decision texts.

    “The Paris agreement should establish a solid foundation for the markets of the future, ensuring their integrity and effectiveness. If policymakers are serious about getting business engaged in actions on a large scale, they must ensure that carbon market mechanisms grow strong under the future framework.”

    The streamlined text is available on the UNFCCC Website.

    Please find this press release here.


  • 17 Jul 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, kouchakji@ieta.org

    GENEVA, 17 July – Commenting on the successful first reverse-auction of carbon credits held by the World Bank’s Pilot Auction Facility (PAF), IETA’s CEO and President Dirk Forrister says:

    “We are pleased to see that the first auction by the PAF was a success.  This innovation offers a fresh approach to public-private partnerships as well as providing a lift to the Clean Development Mechanism, helping keep emissions-reducing projects to move forward in choppy economic times.

    "The PAF shows a practical way that targeted government funds can leverage larger amounts of private money - by reducing risks, it boosts investor confidence and mobilises capital to the climate challenge."

    "In the future, the world needs to see further collaboration between the public and private sectors. The PAF’s model deserves a close look by other climate finance institutions, such as the UN’s Green Climate Fund.”

    The winning bidders included Amsterdam Capital Trading and BP Energy Asia. The full auction results and list of winning bidders is available on the PAF website.


  • 15 Jul 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, kouchakji@ieta.org

    BRUSSELS, 15 July – IETA welcomes today’s publication by the European Commission of its legislative proposal to revise the EU ETS Directive to reflect political agreements reached over the past 12 months.

    The Commission’s proposal will enshrine the emissions trading elements of the bloc’s 2030 climate and energy package, as agreed in October 2014.  The proposal  includes the target to reduce overall EU emissions by at least 40%, compared with 1990 levels. The legislative package helps set a predictable framework for investors and business, says IETA.

    IETA is pleased that the proposal addresses concerns about competition with businesses in non-carbon constrained jurisdictions. In particular, IETA welcomes the proposal to use up to date production data to determine the allocation of free allowances – although closer inspection of the rules to tackle the risk of carbon leakage is needed to understand the consequences for market participants in different sectors.

    “We welcome this step in bolstering the EU ETS for the future, knowing that Europe’s leaders are looking to its 10-year old market to continue to play a central role in the region’s climate response,” says IETA President and CEO Dirk Forrister. “Enshrining the long-term target in law gives business the certainty and predictability needed to plan investments.”

    However, IETA remains concerned that closing the door to the use of carbon offset credits from developing countries will lead to higher prices for European businesses and risks stymieing efforts to encourage wider participation in global carbon markets. 

    “International credits have a role to play in meeting Europe’s wider emission reduction goals.   We firmly believe that the option to use them should be preserved,” says Sarah Deblock, IETA’s Director of European Policy.

    “IETA members have put forward strong proposals on the use of auction revenues to support climate action in developing countries, which could include the purchase high-quality offsets. This would help all nations to play a role in the climate change response, and we are encouraged to see the European Commission proposing that member states reinvest carbon auction revenues to finance climate action in third countries.”

    Deblock adds: “IETA looks forward to engaging with Members of the European Parliament and European Member States in the coming months on finding ways to ensure the revision of the Directive works towards strengthening the role of the EU ETS in Europe’s climate strategy.”

    Earlier this week, IETA released a paper examining policies that overlap with the EU ETS and recommendations to mitigate this risk.


  • 25 Jun 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Sullivan, sullivan@ieta.org

    TORONTO, 25 June – IETA welcomes Alberta’s decision to build on its existing market mechanism to tackle climate change, as sub-nationals continue to lead on carbon pricing and markets across North America.

    The province’s new Environment and Parks Minister Shannon Phillips today announced that the Alberta’s Specified Gas Emitters Regulation (SGER) system1 would be extended until at least the end of 2017, ending months of uncertainty about the future direction of climate policy. The program, the first in North America to put a price on carbon, will also seek greater emissions reductions.

    Alberta last year signed the World Bank’s Joint Statement on Carbon Pricing, and has reached out to emerging economies interested in markets via the Bank’s Partnership for Market Readiness. 

    “IETA is pleased to see that one of the first orders of business for the new Alberta government is to tackle the province’s climate policy – and to recommit to its market-based system,” says IETA President and CEO Dirk Forrister. “This is the signal that business and investors in Alberta have been needing.”

    The new expiration for SGER, 31 December 2017, coincides with the likely start date for Ontario’s emissions trading system – which is intended to link with those of California and Québec. These two systems will be starting their third compliance period from 1 January 2018.

    “IETA looks forward to working with the government on how it can further improve SGER, including potentially expanding Alberta’s next phase of carbon pricing to tie in with other developments in North America,” says Katie Sullivan, Director of North America and Climate Finance.

    “Increased coordination can help achieve greater reductions at even lower costs,” she adds. “This is crucial as the province evaluates its options to meet its long-term climate change commitments. IETA and our members stand by ready to engage with the government on this process.”

     NOTES

    1 Alberta’s SGER is a baseline-and-credit system, with the option to use offsets to comply. For more information on Alberta’s system, please see the IETA-EDF-CDC Climat case study.

    Please find press release here.

  • 18 Jun 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, kouchakji@ieta.org

    GENEVA, 18 June - IETA welcomes Pope Francis’s call for climate action in the run-up to the Paris talks. He is right to call on all of us to do our part, especially those of us in the business community.  We share his hope that the nations of the world can come together in Paris to chart an ambitious path forward that delivers climate benefits and enhances sustainable economic growth. 

    However, the encyclical's brief mention of carbon credits was out of step with the views of most economists and analysts.  Carbon markets are typically quite competitive, and they contain safeguards against the excessive speculation warned about in the encyclical.  It misses the more important point that market mechanisms can help keep the costs down for producers and consumers alike.  Through their cost-effectiveness, market approaches can enable more ambitious emissions cuts to be achieved – and more quickly than cumbersome regulations. 

    Carbon markets are not just a tool for incentivizing major economies and their industries to change.  They also  allow smaller countries and organisations to access climate finance and engage in the global response to climate change. They can also deliver side benefits, such as improved public health, access to education, job creation and female empowerment, among others, as demonstrated by REDD+ and clean cookstoves projects in the developing world.  

    IETA stands firm in its belief that market approaches can benefit climate action and enable businesses to do well by doing good.  In so doing, they can enable humanity to rise to greater ambitions in protecting the earth. 

    Download the press release here





  • 01 Jun 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, press@ieta.org

    GENEVA, 1 June – A letter from the CEOs of six oil and gas companies calling for carbon pricing to play a role in the future international climate change agreement is a welcome boost as climate negotiators begin a two-week meeting in Bonn, IETA says.

    The CEOs of BG Group, BP, Eni, Shell, Statoil and Total signed the letter to UN climate chief Christiana Figueres and France’s foreign minister Laurent Fabius.
    “We need governments across the world to provide us with clear, stable, long-term, ambitious policy frameworks,” they write. “We believe that a price on carbon should be a key element of these frameworks. If governments act to price carbon, this discourages high carbon options and encourages the most efficient ways of reducing emissions widely.”

    The six firms also highlight the opportunities for public-private dialogues that IETA provides, which could help inform the design of a carbon pricing system for energy. The letter also calls for the forthcoming Paris climate agreement to encourage linkages between pricing systems to level the playing field for business and provide policy certainty.

    “Carbon pricing is a key component in driving low-carbon investment, and must play a significant role in the future climate agreement,” says IETA’s CEO and President Dirk Forrister. “Linkages between carbon markets can help keep costs down and enable greater emissions cuts to be achieved faster than they would otherwise. Introducing a price on carbon provides opportunities for clean economic growth in new areas, such as the technological innovations outlined in the letter.”

    He adds: “IETA stands ready to help advance the public-private dialogue about market matters.”


  • 01 Jun 2015 12:00 AM | Anonymous member (Administrator)

    Contact: Katie Kouchakji, kouchakji@ieta.org 

    GENEVA, 1 June – Climate negotiations opening today in Bonn, Germany must harness the momentum from February’s talks and start narrowing differences if the Paris deal is to be adopted in six months, IETA says today. 

    In the two-week meeting, negotiators will tackle the so-called Geneva text for the first time since it was agreed in February. This 90-page text will form the basis of the Paris Agreement in December.

    “The meeting in Bonn needs to keep the positive momentum towards Paris going,” says IETA President and CEO Dirk Forrister. “Negotiators have a big task ahead of them to meet the 11 December deadline for the Paris Agreement. Consolidating discussions on carbon markets – which are currently discussed under three negotiating bodies – could aid governments on this process.” 
     
    IETA welcomes policymakers’ ongoing recognition of the contribution markets can make, including the EU’s new document expressing the importance of markets in supporting ambitious targets. The EU’s proposal reflects many of IETA’s own recommendations in its Market Provisions for the 2015 Agreement document.  
     
    Jeff Swartz, Director of International Policy, adds: “IETA is encouraged that governments are highlighting market-based mechanisms to raise ambition in cutting emissions. We welcome the EU’s new submission, setting out its vision for how markets can be included in the final text, and we look forward to engaging with the EU and other delegations on why markets matter for business.”


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