Contact: Katie Kouchakji, press@ieta.org

NEW YORK, 22 April - Commenting on the signing of the Paris Agreement today, IETA's CEO and President Dirk Forrister says:

"Today’s signing of the Paris Agreement by 170 countries is truly historic. It marks the first step to taking the deal forward. To realize its full potential, policymakers and businesses need to join forces in advancing carbon markets that can provide pricing signals to stimulate innovation and accelerate action. With good rules under article 6, they can enable countries to expand their markets through international linkages. 

Recent analysis by IETA and EDF found that 90 governments need access to markets to achieve their nationally determined reduction targets. Yesterday, we heard the leaders on the Carbon Pricing Panel set out ambitious – and achievable– goals to expand the coverage of carbon pricing. 

It's time to build on the momentum of today's signing. Climate change is not slowing down, and the longer we delay action, the more costly it will be. Market mechanisms can help to significantly cut the costs of action, while achieving the desired emissions reductions quicker than other policy options."

Contacts: IETA: Katie Kouchakji, press@ieta.org  EDF: Jennifer Andreassen, jandreassen@edf.org

LONDON/WASHINGTON DC, 21 April – A bold new global goal for expanding carbon pricing around the world, announced today by the High-Level Carbon Pricing Panel, will require new policies – but could be accomplished through multiple scenarios, an analysis from Environmental Defense Fund (EDF) and the International Emissions Trading Association (IETA) shows.  In its Vision Statement released today, the Carbon Pricing Panel – convened by the heads of the World Bank Group and International Monetary Fund – called for efforts to double the share of global greenhouse gas emissions covered by carbon pricing by 2020, and double coverage again within the next decade. The Panel – featuring the leaders of Canada, Chile, Ethiopia, France, Germany, and Mexico, along with California, Rio de Janeiro, and the OECD – committed to pursuing actions to broaden, deepen, and enhance cooperation among carbon pricing systems around the world in support of the goal.     “The leaders that have joined the Carbon Pricing Panel understand that the world must go further, faster to turn the corner on global emissions and to meet the goals of the Paris Agreement – and that putting a price on carbon is central to realizing that vision. Simply put, market-based policies make it possible for countries not only to meet the targets they announced prior to Paris, but to go beyond them – to cut climate pollution at the scale and pace the science demands,” says EDF President Fred Krupp.  “As the vision statement recognizes, to realize the full promise and potential of carbon pricing, we need to broaden it into new jurisdictions, deepen it where it already exists, and connect systems over time. The Paris Agreement gave countries all they needed to move ahead and cooperate through markets. Now the diverse leaders of the Carbon Pricing Panel have supplied a roadmap for action, a milestone to measure our progress – and a commitment that they will lead the way,” Krupp says.  Putting a price on carbon, through policies such as an emissions trading system (ETS) or a carbon tax, can be an attractive tool for countries to implement the emissions reductions targets they pledged in the lead-up to December’s Paris climate talks.  “The Panel’s visionary leadership is exactly what is needed if we are to achieve the goals set out in the Paris Agreement,” says Dirk Forrister, IETA’s President and CEO. “Carbon pricing is key to enabling nations to proceed with confidence – and in turn could significantly increase ambitions. Already, 90 governments have indicated their interest in using international and domestic markets to fulfil their pledges under the Paris Agreement.”  “The Panel’s goals are ambitious, but achievable – especially if business responds constructively,” Forrister adds. “We pledge to do our part by helping to build business coalitions in support of carbon pricing policies that harness market forces to address the climate challenge. We also plan to support international market linkages that can drive down costs and enable greater ambition over time.”   The EDF-IETA report, “Doubling Down on Carbon Pricing: Laying the Foundation for Greater Ambition”, illustrates a number of possible routes for achieving the dramatic expansion of carbon pricing envisioned by the Panel. The report presents four scenarios for meeting both of the Panel’s targets, to increase carbon pricing coverage from the current level of 12% of global emissions to 25% in 2020, and doubling to 50% coverage in the next decade. The scenarios show that the Panel’s goals are ambitious, in the sense that they will require action beyond what is currently anticipated — especially to reach the 50% goal.  At the same time, the report finds that the goals are achievable, given the existence of multiple plausible scenarios to meet them.  Carbon pricing creates a powerful economic incentive to reduce emissions at the lowest possible cost, generating momentum and impetus for more ambitious climate action. As a result, carbon pricing can play a critical role in meeting the objectives of the Paris Agreement by helping countries to implement their targets and cut emissions even more in the future.  Nonetheless, simply expanding the coverage of carbon pricing will not meet long-run climate goals: the underlying policies must be sufficiently ambitious. The ultimate test of any climate policy is the emissions reductions it achieves.  A 14 April report, also by EDF and IETA, found countries see great potential in carbon pricing as a tool, and can surpass their Paris pledges by carbon pricing through carbon markets. In fact, 90 countries included some mention of market-based policies in their pledges. EDF and IETA are partners of the Carbon Pricing Leadership Coalition. The Coalition brings together leaders from across government, the private sector and civil society to share experience working with carbon pricing and to expand the evidence base for the most effective carbon pricing systems and policies.

Contacts:
IETA: Katie Kouchakji, press@ieta.org
EDF: Jennifer Andreassen, jandreassen@edf.org 

LONDON/WASHINGTON DC, 14 April – The use of market mechanisms can help governments cut emissions even more than the minimum amounts offered in pledges under the Paris Agreement, according to a new report by IETA and Environmental Defense Fund.

With national leaders set to sign the Paris Agreement on 22 April and signalling their commitment to taking it forward, this new analysis highlights an important economic underpinning to its ultimate success. The paper analyses the 188 Intended Nationally Determined Contributions (INDCs) for the Paris Agreement and finds that 90 of these plans mention access to a carbon market will be needed to achieve the respective government’s goals. In several cases, the INDC specifies that a greater goal is possible, if market access and climate finance are available.

Since many INDCs represent the minimum of what governments will do to fight climate change, access to an international carbon market could provide the sound economic foundation to allow climate ambition to be raised – while driving costs down.

The Paris Agreement recognises the valuable role of market-based approaches (including the use of internationally transferred mitigation outcomes) in enabling ambitious reductions in climate pollution.¹ Next month, climate negotiators will meet in Bonn to begin work on guidance for emissions accounting to further support cross-border transfers of mitigation outcomes, as well as rules governing a mechanism for mitigation and sustainable development. 

“Market mechanisms are an important tool in the climate change fight, as their inherent flexibility allows environmental goals to be met faster and at lower cost than old-style regulations,” says IETA CEO and President Dirk Forrister. “As governments make preparations to implement the Paris Agreement, we urge them to accelerate work on the market elements of the agreement and to engage with all stakeholders in a transparent, open manner.

“The business community has a wealth of experience with the world’s carbon markets that policymakers can utilise in forming the rules for the next generation of these systems.”

The paper also considers what the Paris Agreement means for the potential formation of “carbon clubs” to advance climate action. For example, governments could cooperate in the development of rules and standards to ensure the integrity of international emissions trading and to promote greater harmonisation among domestic carbon markets. Numerous economic studies have shown that such cooperation could lower the costs of effective action, leading to even greater emissions cuts than what could be accomplished by countries acting on their own.

“The Paris Agreement was a landmark in the fight against climate change – and the provisions on international cooperation, including through markets, were the unsung hero of the agreement,” says Nathaniel Keohane, Vice President for Global Climate at Environmental Defense Fund.

“Markets have a critical role to play in realising the promise of Paris, by helping countries not only to meet the INDCs they have already announced, but to ratchet up their ambition going forward. The good news is that the Paris Agreement provides all the foundation that countries need to move forward with market-based policies, not only in their domestic actions but also through international cooperation.”

The full paper is available online.

NOTES

1 See article 6 of the Paris 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.

About EDF:

Environmental Defense Fund, a leading international non-profit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. Connect with us on Climate Talks, Twitter and Facebook.

Africa Carbon Forum 2016
Kigali, Rwanda, 28–30 June 2016

Promoting Cooperative Climate Action in Africa

Come to Rwanda for the 8th Africa Carbon Forum to learn how to turn climate challenges into opportunities

The international community achieved a resounding success crafting a new, universal climate change agreement at COP21 in Paris in December 2015. The agreement marked the start of a historic new era for Africa – one that holds great challenges but also exciting, transformational opportunities driven by ambitious national action and increased international cooperation on policies and action for low-carbon development, climate finance, market-driven approaches, technology transfer and capacity-building.

Reasons to participate in ACF 2016

The event will cover:

• Opportunities for Africa post-Paris
• Nationally Determined Contributions to climate change action – policy options and opportunities for transformational development in Africa
• Innovative projects, programmes and investment opportunities for low-carbon and climate-resilient development, such as the Africa Renewable Energy Initiative and Africa Initiative on Adaptation, Loss and Damage
• Sources of climate finance and how to access them, including market-based approaches for sustainable development
• Results‐based financing –rewarding real action on climate change
• Training opportunities on minigrids and other Low Emission Development Strategies
• Efforts to increase demand for carbon credits generated by the Clean Development Mechanism
• Cooperative initiatives under the Nairobi Framework Partnership

.. . and much more!

Who should attend?

ACF 2016 features a comprehensive programme of plenary sessions, technical sessions, solutions-focused dialogues and in-depth training sessions specific to the needs of project developers, financiers and policymakers. This free event offers an invaluable mix of information and diverse networking opportunities.

Network building

The Africa Carbon Forum has a proven record connecting African policymakers and practitioners, investors, local project developers and carbon market players.They come together to share the latest knowledge and opportunities for collaboration on regional and global climate change initiatives. For progressive African policymakers, this annual forum is a “must‐attend” event, critical for keeping up to date with climate finance and market- and policy-based approaches to incentivize development.

Join us in Kigali to learn, share and connect at ACF 2016. For more information, see www.africacarbonforum.com.

We hope to see you there!

IETA Secretariat
www.ieta.org

Contact: Katie Sullivan, sullivan@ieta.org 

IETA comment on Ontario’s cap-and-trade regulatory proposal 

TORONTO, 25 February – Ontario’s government today released its much anticipated regulatory proposal for a cap-and-trade system, expected to launch in January 2017. This comes a day after the Liberal government introduced Bill 172, the Climate Change Mitigation and Low-Carbon Economy Act (2016). This proposed law includes Ontario’s reduction targets, provisions for creating the province’s five-year climate action plan, and details around the management of “regulatory proceeds” from Ontario’s future allowance auctions and the creation of a new Greenhouse Gas Reduction Account.

Commenting on the draft rules, IETA President and CEO Dirk Forrister says:

“The release of detailed design for Ontario’s cap-and-trade program is a significant step forward for North America’s next carbon market. In fact, it is the first major market development since the Paris Agreement was completed in December. It gives Ontario’s businesses the first insights into how this market may take shape. We look forward to continuing our engagement with Ontario officials as they move to finalize the regulation.”

Once in place, Ontario’s program is expected to eventually link to North America’s largest carbon market, comprised of California and Québec’s systems, which recently held their sixth joint allowance auction. In December 2015, the province of Manitoba also announced its intention to move forward with cap and trade, with the intention of linking to this broader regional market.

“The growing provincial leadership is impressive, and the momentum on carbon pricing across Canada is undeniable,” says Katie Sullivan, IETA’s Director of North America. “Linking these markets brings increased flexibility for business so that high environmental achievements are possible while keeping costs in check.”

She adds: “By using cap and trade, governments can also be sure that the environmental goal – emissions reductions – will be met efficiently and at a low cost. This tool allows Canada to remain competitive in a world where many others, from US states to Europe, China and Korea, are controlling greenhouse gases with similar market-based strategies.”

Contact: Katie Kouchakji, press@ieta.org

LONDON, 10 February – Yesterday, the US Supreme Court granted a stay to the US Environmental Protection Agency’s Clean Power Plan pending further legal challenges. Commenting on the decision, IETA’s President and CEO Dirk Forrister says: 

“Despite this ruling, the 2022 enforcement date remains unchanged at this stage. The decision just suspends temporarily the legal obligation for states to submit their implementation plans. While the ruling is procedural and not a direct comment on the substance of the rule , it shows that the Court has some reservations about the rule.  

“The delay adds legal uncertainty about the rule that could have implications for investment planning. This in turn could have negative long-term implications for US emissions levels. This is why IETA has long preferred federal climate legislation that would provide stronger regulatory stability. Still, we will continue to work with our members, states and other interested parties on how market mechanisms can help interested states and regions to consider how to reduce emissions at lowest cost and drive the innovation that our future needs. 

“As the recent Paris Agreement demonstrated, the need to act to cut emissions globally is not diminishing – and we are seeing others around the world taking action, from China to Canada. As governments move to implement the Paris Agreement, these ranks will continue to swell.”

Contact: Katie Kouchakji, press@ieta.org

BRUSSELS, 26 January – European policymakers should capitalise on momentum from the Paris climate talks and ensure the revision of the EU ETS keeps the system at the core of the region’s climate change response, says IETA.

In a position paper released today, the business group and its members welcome the proposal to revise the EU ETS for the post-2020 period, to ensure it plays a central role in the EU’s climate policy. This revision process is an opportunity to address key principles for the smooth functioning of the market, such as allowance scarcity and improved coordination of emissions reduction policies, says IETA.

In light of last month’s historic international climate change agreement in Paris, the paper also calls for clarity on the process if the EU is to increase its emissions reduction target every five years and the impact on the emissions trading programme. 

“The EU ETS revision is a welcome step to enshrining in law the political agreement on the EU’s 2030 climate policy and bolstering confidence in the market’s future,” says Dirk Forrister, IETA’s CEO and President. “The Paris Agreement has given a fresh burst of energy to carbon markets globally – and with more systems under development, it is important that existing programmes set an example and work as efficiently as possible.”

The paper also sets out IETA’s position on how best to address competitiveness concerns, in light of a tighter cap of allowances post-2020. Any provisions to address the risk of carbon leakage should be fair, proportionate and harmonised across the EU to avoid causing market distortions, says the paper.

“The EU ETS revision offers a timely moment to address the appropriate level of support needed for sectors genuinely facing a loss of competitive edge due to climate policies, particularly in situations where leakage could increase overall GHG emissions globally,” says Sarah Deblock, IETA’s Director of European Policy. “However, if we are to meet the 2°C target, it is also important that any support does not hinder cost effective emissions reductions and should be phased out as the threat to competitiveness subsides.”

The full paper is available on the IETA website. 

Contact: Katie Kouchakji, press@ieta.org

LONDON, 18 January – More than 80 businesses from Europe, North America and Australia and China are meeting in Beijing today for a one-day workshop on emissions trading. 

The workshop, organised by IETA’s Business Partnership for Market Readiness (B-PMR)¹, is supported by China’s National Development and Reform Commission and the World Bank. Representatives from the World Bank’s Partnership for Market Readiness (PMR) initiative will also be in attendance. 

Topics on the agenda include sector-based insights, success factors for emissions trading participation, allowance management strategies and the use of project-based credits.  

“IETA is honoured to have been invited by the Chinese government to organise this first of its kind event for large state-owned enterprises preparing for the national carbon market,” says Dirk Forrister, IETA’s President and CEO. “With the country moving ahead quickly to introduce a nation-wide emissions trading system next year, it is encouraging to see such a productive dialogue between Chinese enterprises and their international counterparts.” 

He adds: “The B-PMR offers IETA and its members a unique opportunity to engage with the next wave of carbon markets, in China and elsewhere.” 

The B-PMR will also be holding an ETS Dialogue in Chongqing on Thursday, at the invitation of the city’s UK Consulate General. 

For more information on the B-PMR, please see http://www.ieta.org/B-PMR.

NOTES

1 The B-PMR, launched in 2012, is a complementary programme to the World Bank’s PMR. The latter supports the preparation of carbon pricing mechanisms in developing countries, at a government-to-government level. The B-PMR aims to bring together businesses in these jurisdictions with their counterparts from around the world to share experiences and best practice for emissions trading. 

Contact: Katie Kouchakji, press@ieta.org

PARIS, 12 December – IETA welcomes the adoption of the Paris Agreement today, with a clear role for market mechanisms going forward.  

The final Agreement, which governments approved today, sets out a clear pathway for global climate policy. Governments reaffirmed their commitment to keeping the average global temperature increase to 2°C above pre-industrial levels – and pursue efforts to keep this to 1.5°C.

It also has a clear role for markets, both through international cooperative efforts and a new mechanism to support sustainable development. These will be underpinned by robust accounting provisions, key to ensuring environmental integrity and trust.

These are the three elements IETA and 20 other business groups asked for in a letter to governments in October.  

“We congratulate governments on a historic agreement, grounded in a new spirit of cooperation,” says Dirk Forrister, IETA’s CEO and President. “With the endorsement of more than 190 governments and a strong foundation for markets going forward, businesses can begin planning for a vibrant new future.”

He adds: “We look forward to keeping the momentum going from Paris as the agreement moves from promise to action.”

Contact: Katie Kouchakji, press@ieta.org

PARIS, 7 December – IETA is pleased to announce several new appointments to its board and three new fellows.

At its AGM last week in Paris, the business group’s members elected Paul Dawson from RWE as Chairman of the board, supported by Rick Saines of Baker & McKenzie and Matthew Bateson of Rio Tinto as vice-chairmen.

The members also elected three members to fill vacancies on the Council, including PwC’s Jonathan Grant, Fiona Wild from BHP Billiton and BP’s Dan Barry.  The AGM also approved Council members’ re-election for another term, including:

“I am delighted to announce these new appointments, which bring a new range of experience and perspective to our board,” says Dirk Forrister, IETA’s CEO and President. “As carbon markets continue to spread around the world, IETA’s membership is increasingly diverse, both geographically and in terms of sectors, and I feel the new board reflects this.”

The IETA Council also announced the appointment of three new IETA Fellows:

“Frank, Pedro and Anne-Marie bring a depth of knowledge and experience to our Fellows programme, which will be even more crucial as the next wave of emissions trading ramps up,” says Forrister. “Over the years, all three have played key roles in building the profession through IETA.  We are delighted to offer them this tribute for their contributions of time and talent.”

IETA Fellows are announced annually as the organisation’s highest honours to recognise the contributions of individuals in developing market-based solutions to climate change and in strengthening the role of the IETA in building the profession.

Please download this press release here.