24 September 2020
The International Carbon Action Partnership (ICAP) and the International Emissions Trading Association (IETA) will co-host the high-level event “Ambitious and resilient carbon markets: a central pillar for green recovery” as part of 2020 New York City Climate Week. With ICAP, a partnership of over 30 national and regional governments working on emissions trading and IETA, a non-profit association and voice of the business community on market solutions to climate change, two key international organizations are working together to highlight the resilience of carbon markets to the economic and financial fallout from the COVID-19 pandemic and to promote carbon pricing as a central element of a green recovery.
Panelists presentation available HERE
Recording of the session available HERE
OBJECTIVES: Worldwide, emissions trading systems (ETS) continue to be a key piece of the mitigation puzzle, with 21 systems now operating across four continents and over 20 further systems under development or under consideration. Markets in the European Union, the California and Quebec linked carbon market as well as New Zealand have years of experience and have been reformed to ensure their resilience to external shocks. The markets have varying designs to handle situations of reduced demand for allowances and still support a steadily increasing carbon price to send the critical long-term investment signal for clean technology. Earlier this year, we saw shocks to world economies due to the global pandemic caused by COVID-19. Like other markets, the existing carbon markets were not immune to impacts of these economic shocks or reduced economic activity. However, although they have different design features, data shows they saw rational market behavior and a return to long-term market fundamentals in a short amount of time.
This session would allow for administrators of different carbon markets as well as global business leaders to provide their insights into performance of major carbon markets throughout the ongoing crisis. The event aims to demonstrate that carefully designed carbon markets have shown themselves to be a resilient policy instrument for climate change mitigation even in the face of an unprecedented pandemic.
Resilient carbon markets to drive a green recovery
Moderated by Dirk Forrister, President & CEO, IETA