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14 Jun 2019

Carbon markets 101 – the ultimate guide to global offsetting mechanisms

Introduction This briefing gives an overview of the current discussions under Article 6 of the Paris Agreement which establishes the foundation for market-based climate measures after 2020. It lays out key lessons from the Kyoto Protocol markets, highlights essential issues within the Article 6 negotiations, and provides recommendations on how to solve them. It concludes…

25 Apr 2019

Cracking Europe’s hardest climate nut – How to kick-start the zero-carbon transition of energy-intensive industries?

Executive summary With total greenhouse gas emissions of 708 million tonnes1 per year, resource and energy intensive industry is the third largest climate polluter in Europe2. The cement, chemical, and steel sectors alone are responsible for almost 60% of these emissions. Industrial emissions are regulated under the EU Emission Trading System (ETS), but the numerous…

29 Oct 2018

The Clean Development Mechanism: Local Impacts of a Global System

Executive Summary The Clean Development Mechanism (CDM) was set up under the 1997 Kyoto Protocol to allow developed countries to buy emissions reductions from developing countries in the form of credits, called Certified Emissions Reductions (CERs). The objectives of the CDM are to help developed countries achieve their climate commitment and to assist developing countries in achieving sustainable…

31 Aug 2018

Reconciling CORSIA and the Sustainable Development Mechanism

Executive Summary The Paris Agreement breaks away from the division of “developed” vs. “developing” countries which was enshrined in the Kyoto Protocol. It sets a new dynamic which will inevitably impact the next generation of carbon markets. It further sets new objectives for these mechanisms, such as contributing to overall mitigation of global GHG emissions and…

8 Dec 2017

Beyond the EU ETS: Strengthening Europe’s carbon market through national action

Executive summary In autumn 2017, the EU Member States and the European Parliament agreed on the revision of the EU Emissions Trading System (EU ETS), setting out the scheme’s rules for the 2021-2030 period. The EU ETS aims to put a price on carbon by requiring installations across Europe to surrender allowances reflecting their level…

20 Sep 2017

Pricing carbon to achieve the Paris goals

Executive Summary Putting a price on carbon, based on the polluter pays principle, has the potential to be a powerful policy tool to reduce greenhouse gas emissions in the fight against climate change. A carbon price can come in the form of a tax or a cap and trade system. With a tax, the price of polluting…

22 Jun 2017

A Fair EU ETS Revision

The EU is currently finalizing the implementation of its 2030 climate framework. This work includes a revision of the EU’s Emissions Trading System (EU ETS), the EU’s flagship climate instrument. The European Parliament (EP) and the Council adopted their positions on the EU ETS revision earlier this year and are currently holding talks to reach an agreement on how to design the system for the 2021-2030 period. 

5 Jun 2017

A Clean Fit: The role of the EU ETS in the energy policy landscape

Executive Summary Around the world, governments are establishing carbon pricing systems to put a price-tag on greenhouse gas emissions and incentivize more climate friendly practices. The EU launched its own Emissions Trading System (EU ETS) in 2005. While the ETS is a necessary instrument to decarbonise the power and industry sectors in Europe, experience shows…

18 Apr 2017

Good-Bye Kyoto: Transitioning away from offsetting after 2020

The 2015 Paris Agreement, which sets out the framework for global climate action after 2020, includes the establishment of the Sustainable Development Mechanism (SDM). The goals of the SDM are to promote higher ambition that contributes to emission reductions and sustainable development, and deliver an overall mitigation of greenhouse gas emissions.

6 Feb 2017

How the EU ETS can incentivize cement’s low-carbon transition

Questions and answers on the introduction of an import inclusion scheme for cement On 14 February 2017, the plenary of the European Parliament will vote on the revision of the EU Emissions Trading System (EU ETS) for the 2021-2030 period. Members will vote on the report of the environment committee (ENVI) which was adopted in December…