In the lead-up to the 2015 Paris climate change conference, policymakers stressed the need for creation of integrated carbon markets and called for linking new climate financing mechanisms with the United Nations-organized Green Climate Fund (GCF) based in South Korea. Both the U.S. and China have committed to accelerating the transition to low-carbon development internationally. Through a $3 billion per year pledge to GCF by the U.S. and a new annual $3.1 billion climate finance guarantee by China to support other developing countries to combat climate change, the two countries have committed to enhance multilateral climate cooperation. Read more>>
Tag: Electricity Markets
Carbon Market Watch released a policy brief that examines the Doha decisions. The brief is available here: Carbon Market Watch policy brief. Carbon Market Watch was launched in November 2012 to provide an independent perspective on carbon market developments and is based in Brussels, Belgium.
The Doha compromise has two main elements related to surpluses from the first and second commitment period.
- It does not limit the carry-over of surplus AAUs from CP1 but puts limits on their use in CP2 and countries without a reduction target in CP2 cannot sell their surplus to countries with a reduction target.
- It restricts initial assigned amount, that is, the number of AAUs a country initially receives for CP2. This helps in avoiding a build-up of new surplus.
In a recent Discussion Paper titled “A Safe and Just Space for Humanity: can we live within the doughnut?,” Oxfams’s Kate Raworth writes, “International carbon-offsetting schemes have been set up to enable high-emissions companies and individuals to buy carbon credits by financing investments, often in developing countries, which reduce net CO2 emissions.” Raworth has developed a global compass for sustainable development based on ‘doughnut economics,’ created by combining social foundation with environmental ceiling.
But countries are beginning to internalize environmental externalities by monetizing the greenhouse gas emissions through carbon offsets. For example, animated graphics of thirteen countries of life expectancy vs. carbon emissions, and income per capita vs carbon emissions, show remarkable carbon variations.