15th IEA-IETA-EPRI Annual Workshop on Greenhouse Gas Emission Trading

Background

The International Energy Agency (IEA), International Emissions Trading Association (IETA) and Electric Power Research Institute (EPRI) hosted the 15th Annual Greenhouse Gas Emissions Trading Workshop in Paris on 29-30 September 2015.

Each year this invitation-only workshop brings together over one hundred senior officials from OECD countries, the European Union and other nations, corporate executives from electric companies, energy-intensive industries, brokerage companies and the financial community, analysts and researchers from non-governmental organisations and academia, to discuss developments in GHG emissions trading and related issues around the world. The workshop combines presentations based on recent research with interactive discussions, held under the Chatham House rule. 

Agenda

DAY 1

Workshop overview and introductions

Dirk Forrister, IETA
Tom Wilson, EPRI
Philippe Benoit, IEA

Session 1: Setting the Scene - From INDCs to Paris

This session explored key countries’ Intended Nationally Determined Contributions (INDCs), the role of domestic and international markets in meeting these contributions, and key concerns heading into COP 21.

Katia Simeonova, UNFCCC
Judi Greenwald, US Department of Energy
Manuel Medina, Mexican Delegation (Supplemental documents: National Climate Change Strategy; General Climate Change Law; Special Climate Change Program; Special Climate Change Program 2014-2018)
Yuji Mizuno‌, Japanese Ministry of Environment
Martin Hession, European Commission

Session 2: Carbon Markets in Asia

This session included an update on carbon pricing and carbon market developments in China, Korea, Kazakhstan, and India. It also explored how carbon pricing policies in Asia have evolved throughout 2015 and what future role there may be for bilateral trading arrangements within Asia and between Asia and other regions.

Ritu Bharadwaj, Institute for Industrial Productivity
Jan Willem Van de Ven, EBRD
Karl Upston-Hooper‌, GreenStream Network
Sunhwa Chung, Permanent Delegation of Korea to the OECD

Session 3: Climate Finance and Carbon Markets: Friends or Foes?

This session explored the evolving relationship between markets and climate finance. With the growing role of direct climate finance in the UNFCCC, what role is there for carbon markets to leverage funds, learning and tools to meet or go beyond the expected $100B per annum to be mobilised by 2020?

Venkata Ramana Putti, World Bank Group
Josué Tanaka, EBRD
Abyd Karmali, Bank of America Merrill Lynch
Nick Campbell, CEFIC Climate Change Strategy Implementation Group

Session 4: Paris COP 21 and Carbon Markets – What is at stake for carbon markets?

Some INDCs indicate that countries could achieve more ambitious emissions reductions if they have access to international carbon markets.  Market linkages could enhance economic efficiency through a centralized system that is governed through a UN mechanism – or through bilateral or regional agreements. What are the key issues, and pros and cons of moving forward under a centralized UN system vs. a set of carbon trading “clubs”?  What would each vision need from the Paris Agreement to unleash its potential?

Overview: Steven Rose, EPRI 

Ashley Conrad-Saydah, California Environmental Protection Agency
Nathaniel Keohane‌, Environmental Defense Fund
David Hone, Shell

DAY 2

Session 5: Future of GHG Trading in North America

In August 2015, the U.S. Environmental Protection Agency (EPA) finalized the U.S. federal Clean Power Plan. The CPP requires U.S. states to reduce power sector GHG emissions on average by 32% below 2005 levels by 2030.  States have considerable flexibility in meeting the requirement, including decisions on whether or not to trade. This session explored GHG trading options under the CPP, including the potential for the creation of new or expansion of existing regional trading programs and the complexities of establishing trading programs among states with diverse GHG targets, economic and power sector profiles, and political perspectives.

Overview: Jonas Monast‌, Duke University 

Tom Wilson, EPRI
Kevin Leahy‌, Duke Energy
Gary Helm, PJM Interconnection

Session 6: With Mitigation Action Going Global, is Industrial Competitiveness Still at Risk?

Concerns over industrial competitiveness have led every jurisdiction introducing GHG emissions trading to provide transitional assistance, via free allocation, to industry participants. With a growing number of countries making mitigation contributions under the Paris agreement, is this assistance still justified? Are we likely to see increasing protection measures due to asymmetric global efforts, or is the trend towards a phase down of such measures? How can the 2015 agreement give countries confidence on comparability of action?

Overview: Jonathan Grant‌, PwC UK

Cédric de Meeûs, LafargeHolcim
Russel Mills, Dow Chemical
Julia Reinaud, European Climate Foundation

Session 7: The 2015 Agreement and Markets in a Bilateral, Bottom-up World

The COP21 Paris agreement will be a cornerstone for the future of international carbon markets. It could signal whether and how elements of the Clean Development Mechanism and Joint Implementation will be carried forward post-2020, how domestically-developed market linkages and crediting systems will be recognised toward international targets, and whether the UNFCCC will take a role in overseeing the quality of international market mechanisms. This session brought together key actors in the climate negotiations to discuss expectations for the Paris agreement itself, and how quickly decisions could be implemented after COP 21.

Overview: Andrei Marcu, Centre for European Policy Studies Carbon Market Forum 

Amy Steen, UNFCCC
Laurence Mortier, Federal Office for the Environment, Switzerland
Marcelo Rocha, Fabrica Ethica Brasil (FEB)
Martin Hession, European Commission

Closing Remarks

Philippe Benoit, IEA
Tom Wilson, EPRI

Past Workshops

• 14th Annual Workshop (2014)
• 13th Annual Workshop (2013)
• 12th Annual Workshop (2012)