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  • 13 Jan 2017 11:26 AM | Anonymous member (Administrator)

    European Union regulators should avoid overlapping policies as a matter of principle, to protect the market effectiveness of the EU Emissions Trading System, according to a reflection note from IETA.

    In recent months, there has been considerable discussion into the impact of unilateral policies, such as carbon floor prices and taxes on coal consumption in EU member states.

    National policies often overlap and/or conflict with EU-level regulation. More specifically, these policies have a significant impact on the supply and demand in the EU market, on the functioning of the EU ETS and on efforts on decarbonisation across Europe. They also encourage a fragmented approach to EU climate action that, in turn, creates intra-EU distortions. 

    “Emissions trading has the lowest cost per tonne of CO2e abated compared to other types of regulation. As such, it should be the preferred option to decarbonise the economy in the most cost-effective way,” IETA wrote.

    Moreover, often the impact of national and unilateral measures on the EU ETS is not adequately taken into account. Therefore, greater transparency is needed on whether such policies contribute to turning the EU ETS into a residual policy instrument as emission reductions in the ETS sectors would be achieved not through a well-functioning ETS, but as a consequence of other national policies and regulations, associated with higher costs per tonne of CO2e abated.

    IETA recommends that policy overlap should be avoided wherever possible. To achieve greater transparency, national policies and measures should, as a minimum, be subject to an analysis of their impact on the system, in terms of potential additional emission reductions that they might create, the intra-EU distortions they might cause, and any potential additional costs for achieving such reductions compared to what would have been the case with the EU ETS only.

  • 19 Dec 2016 1:37 PM | Anonymous member (Administrator)

    LONDON, 19 December -- IETA is delighted to announce the appointment of Julia Michalak as EU Policy Director, with effect from 16 January 2017.

    Julia joins IETA from the Polish Institute of International Affairs (PISM), where she has been responsible for research on EU climate and energy policy.

    “We’re delighted Julia will bring her experience and knowledge of European policy to bear on our mission to develop efficient, robust carbon markets both in the EU and elsewhere,” said Dirk Forrister, chief executive officer.

    Previously, Julia worked for several years on EU climate policy, with a special focus on Poland. Before PISM she worked for a Warsaw-based policy think-tank demosEUROPA, Climate Action Network Europe secretariat in Brussels and Greenpeace Poland. She led European NGOs’ advocacy work on the EU Emissions Trading System, focusing on “backloading”, the Market Stability Reserve and free allocation to the power sector in Central and Eastern Europe. In the years 2008-2009, she also followed the UNFCCC negotiations. 

    “With the Paris Agreement in place, the EU advancing its carbon market reform and China launching a national system next year, there is a strong momentum for market instruments in delivering meaningful climate action. I look forward to contributing to these positive developments,” Julia said.

    Beginning on 16 January 2017, Julia will work in the Brussels office with Stefano De Clara, who was recently promoted to Director of International Policy. Until then, enquiries on the EU ETS should be directed to Stefano De Clara.

  • 12 Dec 2016 9:46 AM | Anonymous member (Administrator)
    BRUSSELS, 12 December -- The International Emissions Trading Association today called on members of the European Parliament’s environment committee (ENVI) to reach a swift agreement on amendments to the proposed EU ETS revision.

    The committee delayed a vote on compromise amendments until Thursday December 15 after political groups could not reach agreement ahead of the original December 8 deadline. Shadow rapporteurs from all political groups will meet today, Monday December 8, to continue discussions with a view of reaching a compromise.

    “MEPs need to adopt a common position on the revision in a timely manner, so as to avoid any further delays to the legislative process,” said Dirk Forrister, chief executive officer of IETA. 

    "We are pleased that a number of improvements are under consideration that could bolster the ETS's role as the centerpiece of European climate policy, and we look forward to seeing a compromise package that helps the EU achieve its Paris goals cost effectively."

    About the EU ETS Revision

    First tabled by the European Commission in July 2015, the Revision set out changes to the EU ETS for the fourth phase of the market, starting in 2021.

    The Commission proposed to increase the rate at which the market cap is reduced to 2.2% per annum; to retain the share of permits to be auctioned at 57% of the total; and to revise the system of allocating free permits to energy-intensive trade-exposed industrial sectors.

    The proposed legislation must be reviewed, amended and approved separately by the Parliament and the member states in Council, before they join the Commission in a trilogue process to agree a common text.

    The revision is expected to be finalised in the second half of 2017.

  • 30 Nov 2016 12:10 PM | Anonymous member (Administrator)

    IETA welcomes the European Commission’s Winter Package as a further step toward harmonising the bloc’s climate and energy strategy.

    The Winter Package includes legislative proposals to implement the remaining building blocks of the EU’s 2030 Climate and Energy Framework; in particular, it includes a proposed Renewable Energy Directive and Energy Efficiency Directive.

    While we are pleased that the Commission has introduced these proposals to update existing regulations for the next decade, we believe great attention should be paid to ensuring that the new proposals work well in coordination with each other and with the EU ETS. 

    Policy overlap should be avoided as a matter of principle. Overlapping policies inhibit the market effectiveness of the EU ETS which is, as the Commission has emphasised, the central pillar of the bloc’s strategy to reduce GHG emissions cost-effectively.

    Several studies estimated that emissions trading has the lowest cost per tonne of CO2 abated compared to other types of regulation. As such, it should be the preferred option to decarbonise the economy in the most cost-effective way. The ETS avoids the unnecessary economic burden to society associated with other types of regulation.

    Moreover, an analysis carried out by IETA last year showed that the combined impact of the Energy Efficiency Directive and Renewable Energy Directive would lead to an additional reduction in demand for ETS allowances of more than 700 million tonnes of CO2 by 2020. 

    Without additional measures to ensure this reduced demand is reflected in the EU ETS cap, this would have a significant impact on the supply and demand of allowances and on the carbon price.

    IETA would therefore welcome clear and transparent estimates of delivery of emission reductions and their timing through these non-market regulations, as well as the CO2 abatement costs associated with these measures, as a way to inform the policy making discussion.

    If despite these considerations, there is evidence that some elements of the Winter Package would cause a material impact on the ETS, then an ex-ante discussion is required to assess whether the baseline of the ETS should be adjusted going forward.

    The ongoing revision of the EU ETS for Phase 4 is a good opportunity to ensure that the functioning of the carbon market will not be affected by the impact of other policies. 

    As outlined in our position paper, IETA recommends that the ETS Directive itself spell out the process by which such assessments and reviews will take place to address transparently the question of policy interaction. 

    In summary, to ensure the market is equipped to take on the challenge of functioning for its fourth and longest Phase, IETA encourages greater policy coordination and harmonisation amongst the various energy and climate policies before 2020.

  • 17 Nov 2016 3:18 PM | Anonymous member (Administrator)

    MARRAKECH, November 17 -- The International Emissions Trading Association (IETA) and the Climate Markets and Investment Association (CMIA) are delighted to recognise the Government of Canada as their second Carbon Pricing Champion of 2016.

    The award, sponsored by Ecosphere+, was presented to Federal Environment Minister Catherine McKenna at a ceremony in Marrakech.

    “This award recognises the remarkable steps Canada has taken in the last year, after it emerged as a significant player in the Article 6 discussions in Paris,” said Dirk Forrister, President and CEO of IETA. 

    At the historic COP 21 meeting in Paris last December, Canada emerged as a signatory to the Ministerial Declaration on Carbon Markets, and a member of the Carbon Pricing Leadership Coalition, lending its support to efforts to build effective market mechanisms through the Paris Agreement.

    "Since Paris, Canada followed through by proposing a national carbon pricing program, where all parts of the country will see an explicit price on carbon by 2018,” said Katie Sullivan, Managing Director at IETA. 

    “In cooperation with sub-national leaders, Canada’s innovative approach will recognise existing provincial systems – including the Quebec-Ontario cap-and-trade system or the Alberta and British Columbia hybrid levy systems. It will also  encourage the other provinces to choose between cap-and-trade or direct pricing systems, starting at C$10/t in 2018 and scaling to C$50/t by 2022,” said Sullivan.

    "We’re delighted to see such a progressive stance on market mechanisms, and congratulate Canada on its climate leadership and championing of carbon pricing,” Forrister added.

  • 15 Nov 2016 6:27 PM | Anonymous member (Administrator)

    MARRAKECH, November 15 — At its Annual General Meeting yesterday in Marrakech, IETA named two new board members and announced the appointment of its first China Representative.

    Joining the board is Sung-Woo Kim, Regional Head of Climate Change and Sustainability in Asia Pacific at KPMG. Mr. Kim is a leader in the region on carbon markets and climate finance. He is also the first South Korean member of IETA’s board.

    “The appointment of Sung-Woo is an important signal for the South Korean carbon market,” Dirk Forrister, IETA’s CEO said today. “He has been an active member of our South Korean Working Group and is also active with the Green Climate Fund.”

    Also joining the board is Jeanne Ng, Director of Group Sustainability at China Light & Power. She is a former member of IETA’s council, and presently works with the association’s China Working Group.

    “China Light & Power is represented in a number of Asia Pacific nations,” Forrister said. “Jeanne will help us build Chinese carbon markets leadership in the future.”

    Meanwhile, IETA has appointed Li Min as its first China Representative from December 1. Li Min joins IETA from Blue World Carbon Capital, where she developed a strong understanding of China’s developing carbon market. Li Min also has extensive business development experience working in the Kyoto Protocol’s Clean Development Mechanism.

    Min Li also has valuable experience of working with China’s NDRC on the country’s Agenda 21. More recently, she worked with GTZ on capacity-building in China.

    “We’re very pleased to have Li Min joining us at such an important time for China’s emissions market,” Dirk Forrister, IETA’s CEO, said today. “A new system will need time to grow and develop, and we’re confident she will help IETA to be a robust advocate for the Chinese market going forward.”

    The meeting also reappointed the following Council members:

    • Scott Weaver – AEP
    • Paul Dawson – RWE
    • Christine Faure-Fedigan – Engie
    • David Hone – Shell
    • Abyd Karmali – Bank of America / Merrill Lynch
    • Rick Saines – Baker McKenzie
    • Jonathan Shopley, Natural Capital Partners
    • Ed Ma – Suncor Energy

    IETA will also announce the appointment of a new EU Policy Director in the near future.

    The Association’s Council also decided to honour three new IETA fellows for their contribution to the organisation and its mission.

    John Kilani, the former Head of Sustainable Development Mechanisms at the UNFCCC;

    Bruce Braine, former vice-president of American Electric Power and a former chairman of the board of IETA; and

    Ken Newcombe, formerly of the World Bank, Climate Change Capital and Goldman Sachs.

  • 10 Nov 2016 9:16 PM | Anonymous member (Administrator)

    MARRAKECH, November 10 -- The International Emissions Trading Association (IETA) and the Climate Markets and Investment Association (CMIA) are delighted to recognise the International Civil Aviation Organisation as their first Carbon Pricing Champion of 2016.

    The award, sponsored by Ecosphere+, was presented at a ceremony in Marrakech.

    Last month, ICAO member nations agreed to create the Carbon Offsetting and Reduction System for International Aviation (CORSIA), the first global, sectoral carbon pricing system.

    The agreement in Montreal in October was the culmination of years of work, and sets a goal for the aviation industry worldwide of carbon-neutral growth from 2020 onwards.

    “This new market will provide a real source of demand for offsets at a time when the markets need to see strong signals from buyers,” Jeff Swartz, international policy director at IETA, said today.

    “CORSIA involved hard work from governments, the private sector and with civil society to provide an outcome that’s good for the planet and good for market-based approaches to reduce emissions. We look forward to working with ICAO on implementing the CORSIA.”

    Margaret-Ann Splawn, executive director of CMIA, said: “CORSIA is proof of the ability to establish a global sectoral mechanism rather than a purely national market. This new market creates demand for high-integrity offset standards above and beyond those recognised by other cap-and-trade systems such as the CDM. This creates the pathway to expanding the reach of where emissions reductions can come from.”

  • 09 Nov 2016 10:42 PM | Stephanie Olegario (Administrator)

    Marrakech, 9 November — IETA and the Climate Markets and Investors Association (CMIA) today released a joint statement supporting the inclusion of emissions offsets from Reduced Emissions from Deforestation and Forest Degradation (REDD+) projects in the new market mechanism being developed by the International Civil Aviation Association (ICAO).

    IETA and CMIA are pleased that ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) seems likely to make REDD+ projects eligible for airlines to use in meeting their obligations under the mechanism.

    However, the two organisations are concerned that there is no clarity yet on the scale or manner in which REDD+ credits may be used.

    IETA and CMIA call on ICAO to allow REDD+ projects into its market system as soon as possible, to allow the development of REDD+ projects on a wider scale. At present only a very few countries have implemented REDD+ to generate credits on a national scale.

    Please click here to read IETA and CMIA’s position, and makes the case for early inclusion of REDD+.

  • 09 Nov 2016 1:12 PM | Anonymous member (Administrator)


    Marrakech, November 9 -- IETA and the International Air Transport Association (IATA) have entered into a Memorandum of Understanding to cooperate in the development and delivery of a series of regional workshops for airlines on compliance with the Global Market-Based Measure (GMBM) that was agreed by the ICAO last month.

    A series of five workshops will be held around the world in February and March 2017, at which experts and industry participants will discuss preparations for the world’s first sectoral carbon market mechanism.

    ICAO’s Carbon Offsetting and Reduction System for International Aviation, known as CORSIA, will cover growth in CO2 from international flights from 2020, starting with a voluntary scheme and moving to a mandatory system after six years. The CORSIA is expected to cover over 80% of the growth in CO2 from the sector from 2020 by requiring operators on those routes taking part in the scheme to offset emissions through approved carbon reduction projects. More information is available here.

    IATA Director of Aviation and Environment, Michael Gill said: "Over 80% of the growth in international aviation CO2 will now be covered by the CORSIA. This global commitment to aviation sustainability is being matched by airlines who are already undertaking significant efficiency measures to drive down CO2 emissions. The cooperation agreement between IATA and IETA to build capacity and carbon-offsetting understanding is an important step to helping airlines prepare for the implementation of the CORSIA in the next few years.”

    “In addition, by working closely with ICAO in the area of capacity building, I am confident we can also increase the level of voluntary commitments to this comprehensive and environmentally robust global offsetting scheme."

    The IATA/IETA workshops are aimed at helping to develop understanding of the emerging principles that will govern CORSIA, and allow industry participants a chance to share experiences and jointly develop approaches to achieving compliance.

    “The advent of ICAO’s market mechanism demonstrates the appeal of carbon pricing as an efficient tool to manage greenhouse-gas emissions,” Dirk Forrister, CEO of IETA said. “The aviation industry faces new opportunities and challenges, and IETA is committed to making a success of CORSIA. Our members have many lessons-learned to share from the early experiences in carbon markets. "

    The two-day workshops are scheduled to take place in Singapore, Nairobi and Casablanca in February 2017, as well as Geneva and Miami in March 2017.

  • 03 Nov 2016 6:43 PM | Anonymous member (Administrator)

    IETA is pleased to announce the publication of its annual Greenhouse Gas Market Report for the year 2016-2017.

    This year’s report takes as its theme “Bridging the Ambition Gap: The Rise, Reach and Power of Carbon Markets.” It celebrates the growing popularity of emissions trading systems by looking at the elements that will build the institutions of the Paris Agreement and new national markets.

    “This year’s report reflects on the importance of cooperation and collaboration. It focuses on how to prompt the next wave of market investments in support of the Paris Agreement by following through on the operational elements,” says Dirk Forrister, CEO of IETA. “This vital work of establishing institutions and rules gets underway next week in Marrakech.”

    “There is a wealth of knowledge and experience built up in existing market mechanisms around the world, and we hope governments will look to these lessons as they start crafting the implementation details of the Paris Agreement.”

    The report is introduced by Dirk Forrister, and contains keynote articles written by Jos Delbeke, the Director-General of the European Commission’s Climate Directorate and Vikram Widge, manager of the World Bank-IFC Climate and Carbon Finance Unit.

    There are contributions from Swedish and Brazilian climate diplomats, considering the importance of the key Article 6 of the Paris Agreement to both emerging and developed economies.

    This year’s report also contains articles that consider the role that accounting, offsets and forestry will play in the new system. There are also papers looking at key principles of emissions trading that should be considered when creating new cap-and-trade systems around the world.

    The report looks at developments in key jurisdictions, including the US, where President Obama’s Clean Power Plan is held up by legal challenges, the EU, where lawmakers are considering reform of the bloc’s carbon market, and Africa, where potential is seen for the emergence of carbon pricing.

    IETA’s Greenhouse Gas Market Report is available on the IETA website at www.ieta.org/ghgmarkets2016.

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