status and trends of carbon pricing - 2014

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Carbon Expo Cologne May 2014

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http://www.leonardo-energy.org/webinar/status-and-trends-carbon-pricing-2014 The webinar will outline key developments on carbon pricing based on the 2014 report “State and Trends of Carbon Pricing”. The report gives insights to existing and emerging carbon pricing initiatives around the world. Those initiatives cover instruments that put an explicit price on greenhouse gas emissions, such as emissions trading schemes, offset mechanisms, carbon taxes and results-based financing. This report goes a step further than 2013 version also prepared by Ecofys, with better coverage of carbon taxes, and a good look at prices.

TRANSCRIPT

Page 1: Status and Trends of Carbon Pricing - 2014

Carbon Expo Cologne May 2014

Page 2: Status and Trends of Carbon Pricing - 2014

12% of global GHG emissions under the KP CP2 (so far, only 9 Countries have ratified)

So far, the only country with a CP2 target that ratified the KP CP2 is Monaco, with 90k CO2e (0.0002% of global GHG)

European Union

Australia Ukraine

Kazakhstan

Belarus

Norway

Switzerland

Iceland

Liechtenstein

Monaco Size represent relative annual GHG emissions

Ukraine, Kazakhstan, and Belarus have not yet confirmed

Page 3: Status and Trends of Carbon Pricing - 2014

International credit supply outstrips demand, but CDM success should not be overlooked

Full potential for issuance for 2014–2020

Residual demand for 2014–2020

OVERALL CDM SUCCESS MtCO2e

Page 4: Status and Trends of Carbon Pricing - 2014

Uncovering the cover Increasing share of global emissions under ETSs

GHG covered by each scheme is represented by the quantity of tiles

Swiss ETS Saitama ETS Tokyo CaT RGGI Hubei pETS Shenzhen pETS Chongqing pETS Guangdong pETS EU ETS Alberta SGER NZ ETS Australia CPM Tianjin pETS KAZ ETS Québec CaT California CaT Beijing pETS Korea pETS Shanghai pETS

Page 5: Status and Trends of Carbon Pricing - 2014

About 40 national and over 20 sub-national jurisdictions are putting a price on carbon

global GHG emissions

Carbon pricing instruments cover almost 6 GtCO2e, about 12% of the annual global GHG emissions

Page 6: Status and Trends of Carbon Pricing - 2014

Eight new carbon markets opened their doors in 2013, and more is coming in 2014

California CaT

Québec CaT Kazakhstan ETS

Shenzhen pilot ETS

With the new joiners, the world’s emissions trading schemes are worth about US$30 billion

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Start date of compliance

Shanghai pilot ETS

Beijing pilot ETS

Guangdong pilot ETS

Tianjin pilot ETS

Hubei pilot ETS

Jan 2013

Jun 2013

Nov 2013

Dec 2013

Apr 2014 2014 2015

Chongqing pilot ETS

Korea ETS

Page 7: Status and Trends of Carbon Pricing - 2014

Emissions trading schemes continue to develop at pace, despite the dire state of the international carbon market

Page 8: Status and Trends of Carbon Pricing - 2014

An increasingly larger share of global emissions are being covered by ETS

Page 9: Status and Trends of Carbon Pricing - 2014

Carbon taxes around the world are evolving to allow more flexibility to reduce emissions

Page 10: Status and Trends of Carbon Pricing - 2014

Price signals in carbon pricing schemes are diverse

• Carbon prices between schemes occupy a significant range

• Increased ambition in these systems could lead to increased prices

• An illiquid market where few reductions are traded do not necessarily reflect the economic fundamentals of a mature market

• Prices reflect a range of political realities and goals

Page 11: Status and Trends of Carbon Pricing - 2014

Full deployment of available instruments of international cooperation is needed

Page 12: Status and Trends of Carbon Pricing - 2014

Jurisdiction and status of each carbon pricing instruments

Instrument Status Regional National Sub-national

ETS Implemented EU ETS Australia, Kazakhstan, New Zealand, Switzerland

Alberta, California, six Chinese pilots, three Japanese schemes, Québec, RGGI

Implementation scheduled

Republic of Korea Chongqing

Under consideration

Brazil, Chile, China, Japan, Mexico, Thailand, Turkey, Ukraine

Rio de Janeiro, São Paulo, Washington

Tax Implemented Denmark, Finland, France, Iceland, Ireland, Japan, Mexico, Norway, Sweden, Switzerland

British Columbia

Implementation scheduled

South Africa

Under consideration

Chile, Republic of Korea

Yet to be chosen

Colombia, Costa Rica, India, Indonesia, Iran, Jordan, Morocco, Peru, Russia, Tunisia, Vietnam

Manitoba, Ontario, Oregon

Page 13: Status and Trends of Carbon Pricing - 2014

Carbon Expo Cologne May 2014

www.carbonfinance.org www.ecofys.com

Thank you!!