On 23 May 2016, ELEEP hosted a UNFCCC Side Event on the topic "Transatlantic Perspectives After Paris: Carbon Markets and the linking of Emission Trading Systems". The event featured guest speakers Aki Kachi (ELEEP Fellow 2015/2016) and Michael Mehling (Executive Director of the Center for Energy and Environmental Policy Research at the Massachussetts Institute for Technology). Matthias Duwe (Head of Climate, Ecologic Institute) moderated the event. During the event, the speakers discussed existing options for the development of carbon markets post-Paris and provided a perspective on what they could mean for carbon markets in the US and the EU.
The Bonn Climate Change Conference in May 2016 marked the beginning of the Paris Agreement’s implementation and comes at a time in which discussions on carbon markets are gaining renewed prominence:
- The Paris Agreement provides the framework for new mechanisms in its Article 6 and leaves room for interpretation in its implementation.
- While facing legal challenges, Obama’s Clean Power Plan could enable US States to achieve GHG reduction targets with the support of carbon market mechanisms.
- Within the EU Emission Trading System, options like the Market Stability Reserve are being explored to improve on the balance of allowances’ supply and demand.
- Additional states and regions (ex. China) have started carbon markets in recent years and could provide powerful partners for the linking of Emission Trading Systems.
A video recording of the event can be viewed on the ELEEP Network YouTube Channel.
Moreover, the presentation slides from the event are available on the ELEEP Network SlideShare Page.