Dr Venkata Ramana Putti Carbon Markets and Innovation Asia Pacific Carbon Forum Singapore July 1113 2018 State of Carbon Pricing 45 national and 25 subnational jurisdictions are putting a price on carbon ID: 695150
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Slide1
Role of Markets in Delivering Climate Action
Dr. Venkata Ramana PuttiCarbon Markets and Innovation
Asia Pacific Carbon Forum, Singapore
July 11-13, 2018Slide2
State of Carbon Pricing
45 national and 25 subnational jurisdictions
are putting a price on carbon
Source: World Bank Group,
State & Trends of Carbon Pricing
(May 2018)Slide3
GHG emissions coverage of CP initiatives
With the Chinese ETS, carbon pricing initiatives would cover about 20 percent of global greenhouse gas (GHG) emissions, up from 15% last year.
Source: World Bank Group,
State & Trends of Carbon Pricing
(May 2018)Slide4
1389 companies disclose the use of an internal carbon price – or intend to do so in the next 2 years
607 companies are already using internal carbon pricing as an accounting and risk management tool (17.4% increase from 2016)
Source:
CDP, Putting a price on carbon - Integrating climate risk into business, October 2017.
Growing interest of private sector in internal carbon pricingSlide5
CARBON PRICING INSTRUMENT
Supported by PMR
SCOPE OF PMR SUPPORT
Core technical components
From Readiness to Implementation
Progress so far and key milestones along countries’ readiness roadmap (beyond PMR)
Carbon Tax
Emissions Trading
GHG Crediting
Other: RECs, EECs…
Modelling & Upstream Policy Analysis
CP Instrument Design
GHG Data Mgt & MRV Systems
Regulatory & institutional framework
Stakeholder Engagement, Comms
Milestone events
as of Spring 2018
Key expected outcome/output
by end of PMR Phase 1 (June 2020)Argentina Carbon Tax recently introduced; effective next yearDecision on carbon tax extension/expansion made, informed by PMR work.Brazil Sectoral analysis on carbon pricing impact completed in several sectorsDecision on choice of carbon pricing instrument made.China Successful ETS Pilot Phase. Official launch of National ETS announced.Fully operational ETS in multiple sectors.Colombia Carbon Tax introduced and effectiveETS consideration included in new climate billDecision on supplemental carbon pricing instrument taken; ETS roadmap agreed uponCote d’Ivoire (TP) Government commitment on pricing carbon reflected in NDCDesign and introduction of carbon tax Costa Rica National carbon Neutrality Program, including CR Offset rules, reformed and re-launchedDesign of GHG Emissions LevyGHG emissions levy introduced; domestic VER market operating; piloting of sector crediting programsChile Carbon Tax introduced and effective Decision on carbon tax extension/expansion and/or supplemental ETS instrument madeIndia Design of meta-registry; development of roadmap for implementation of carbon pricing instruments in waste and MSME sectorRegistry infrastructure for MBIs in place; decision on full implementation of piloted MBIs in waste and/or MSME sector Indonesia New mandate on use of economic instruments, incl. carbon pricingChoice of explicit carbon pricing instrument made.Jordan Implementation of the MRV system under progressMRV infrastructure in place; choice of carbon pricing instrument made, informed by PMR workKazakhstan National ETS re-launched, after two-year pause.3rd ETS compliance period successful.Decision on linking with other allowance markets.
Carbon Pricing Readiness through PMRSlide6
Carbon Pricing Readiness through PMR
Mexico
Carbon Tax introduced and effective
Mandate and schedule for ETS development &pilot
ETS design finalized and pilot phase ongoing, with schedule for operation
Morocco
MRV framework (for market-based instruments) being developed
Decision on choice of appropriate carbon pricing instrument
Panama (TP)
Deployment of carbon pricing included as key policy instrument in NDCDesign and introduction of carbon tax Peru Impact of carbon price introduction assessedUse of int’l carbon markets included in NDCITMO pilots designed; MRV infrastructure incl. for international transactions in placePhilippines Develop’t of policy environment enabling private sector participation as key for mitigation in NDCChoice of carbon pricing instrument made, informed by PMR work South Africa Carbon Tax legislation finalized and to be submitted to ParliamentCarbon Tax and Offset System up and runningSri Lanka Identification of a suitable carbon pricing instrument for power and transport sector started;MRV infrastructure in place; strengthened domestic offset scheme in operation; identification of suitable carbon pricing instrumentThailand TVER national offset system in place ETS Implementation roadmap developed & agreed uponTunisia Mapping of mitigation policy instruments, fully consistent with ambitious energy & climate targetsDecision on implementation of appropriate carbon pricing instrument/sTurkey National MRV framework implemented and operational; design & impact of carbon pricing instruments assessedPilot ready for economy-wide carbon price Ukraine MRV legislation finalized and under consultationMRV legislation and framework implementedDecision on choice of carbon pricing instrumentVietnam Deployment of carbon pricing included as key policy instrument in NDCPilot program on GHG Crediting operatingChoice of carbon pricing instrument made CARBON PRICING INSTRUMENTSupported by PMRSCOPE OF PMR SUPPORTCore technical componentsFrom Readiness to ImplementationProgress so far and key milestones along countries’ readiness roadmap (beyond PMR)
Carbon Tax
Emissions Trading
GHG Crediting
Other: RECs, EECs…
Modelling & Upstream Policy Analysis
CP Instrument Design
GHG Data Mgt & MRV Systems
Regulatory & institutional framework
Stakeholder Engagement, Comms
Milestone events
as of Spring 2018
Key expected outcome/output
by end of PMR Phase 1 (June 2020)Slide7
Key priorities for action
Expanding coverage through the development of
new initiatives
and the
broadening of GHG
coverage in existing initiatives;
Deepening impact by raising carbon prices, which will send a stronger price signal, triggering more investments in low-carbon technologies;
Aligning carbon pricing
with complementary and enabling policies;
Progressing on the guidelines of the Paris Agreement
to pave the way towards linking domestic pricing schemes and enabling usage of international market mechanisms.