Introduction to Carbon Markets

ICAO – Seminar - Montreal

Ms. Sophy Greenhalgh

Director – IETA

7th February 2018

Introducing IETA Established in 1999, IETA is the collective voice of stakeholders on carbon pricing, it represents the “carbon market”

An international non-profit association holding cross sectoral businesses implementing carbon pricing – business, project developers, investors, lawyers, verification bodies, carbon standards, retailers/brokers and sustainability consultants, climate change advisors.

Policy design, thought leadership, global capacity building, best practice, knowledge transfer

Global Partnerships & Dialogues with UNFCCC, World Bank,

OECD-IEA, IATA - other multilateral organisations.

Carbon Pricing

Emissions Trading Schemes

Baseline and credit mechanisms

Generate emission reduction units that can be used in compensation and offsetting

NDC Targets

CORSIA

Voluntary Business Actions Emissions Trading Schemes

Emission reduction units uses

Global climate funds

GHG reduction projects around the world

Real

Measureable

Permanent

Additional

Independently verified

Unique

Does no harm

Generating emission reduction units

9

The role of standards and certification programmes

Value chain of the carbon market

ERU Generation

• project developers, verification bodies/auditors, communities/land owners, registries, standards/certification

Intermediaries

• brokers, retailers, exchanges, consultants, advisors

Buyers/Investors

• buyers, business, investors, parties

11

Supply in current global context

12

Supply estimates up to 2020

13

Global Policy Dynamics

COP 19 Warsaw framework for REDD+

14

Carbon markets worldwide

California

Oregon

Washington

British Columbia

Alberta Manitoba Ontario

Quebec

New Brunswick

Nova Scotia

RGGI US

CANADA

MEXICO

COLOMBIA

TRINIDAD AND TOBAGO

SWITZERLAND

EU ETS

UKRAINE

TURKEY

KAZAKHSTAN

CHINA

SOUTH AFRICA

AUSTRALIA

NEW ZEALAND

VIETNAM

THAILAND

Tokyo & Saitama

SOUTH KOREA

Beijing

Tianjin

Hubei

Shanghai

Chongqing

Taiwan

Shenzhen

Guangdong

ETS in place

ETS Being Designed

Carbon Tax with Offsets Being designed

or in place

Hybrid Carbon Pricing

Linkages