Technical Workshop 10: Carbon Markets: From Current Practices to their Role in the New Climate Regime (London)

Photo credit: Hernan Pinera; Source: Creative Commons
This workshop was a forum to share lessons from existing carbon markets and to discuss relevant issues for carbon markets under the international agreement. Day 1 focused on an enabling environment for effective trade and private sector engagement, with in-depth updates from California, China, the European Union, and the Republic of Korea. Day 2 provided an opportunity to translate these practical examples of markets into a number of carbon market issues under the international negotiations.
Mar 12 - 13, 2015
London, UK
Day 1: March 12, 2015
8:30 Registration
1. Opening and Introduction
Vikram Widge, World Bank
Dirk Forrister, IETA
Pete Betts, Department of Energy and Climate Change, UK
Karl Upston Hooper, Greenstream Network and B-PMR Chair
2. Carbon Markets in Practice

This session provided an opportunity for PMR countries, technical partners, and observers to share the latest developments from their respective emission trading schemes.
Moderator: Xueman Wang, PMR Secretariat
Wang Shu, National Development and Reform Commission, China
China: Update on Nation-Wide ETS Development
Duan Maosheng, Tsinghua University
China: Carbon Emissions Trading Pilots - An Initial Review
Background Paper: Carbon Market Financial Innovation in China
10:30 Break
Hyungna Oh, Kyung Hee University
Republic of Korea: ETS - A Non-Annex I Country's Attempt to Voluntarily Reduce GHG Emissions
Background Paper: A Non-Annex I Country's Attempt to Voluntarily Reduce GHG Emissions
Moderator: Dan Barry, BP
Johannes Enzmann, European Commission
EU: Update on the EU-ETS
Michael Gibbs, Air Resources Board, California
California: Climate Program
Wang Shu, NDRC, China
12:15 Lunch
3. Enabling Trade and Private Sector Engagement in Carbon Markets

Workshop participants discussed how trade and private sector engagement in carbon markets has and is being enabled. Representatives from the EU and China provided an overview and lessons on carbon finance and emissions trading developments within their respective markets. Then there was a panel discussion with private sector representatives sharing their perspectives on operating across different and fragmented carbon markets.
Louis Redshaw, Redshaw Advisors
EU: Finance and Emissions Trading: 10 Years of Developments
Duan Maosheng, Tsinghua University
China: Carbon Finance Innovation in Emissions Trading Pilots
Lasse Ringius, IFC, World Bank Group
China: Emissions Trading and the IFC
Liva Andersone, European Commission
EU: Choice of Sectors and GHG Coverage under an ETS
Robert Fletcher, Air Resources Board, California
California: Coverage and Cap Setting
Ingo Ramming, Commerzbank
Daniele Agostini, Enel
Manuel Möller, EEX
15:45 Depart for site visit
4. Carbon Trading in Practice
Workshop participants visited seven carbon trading houses in London to experience carbon markets operating in practice and witness an interactive demonstration of a trading desk. Trading sites included Shell, Carbon Neutral Company, ICE, Commerzbank, BP, EDF trading, PetroChina, and Mecuria.
17:30 Wrap up
18:30 Reception
Day 2: March 13, 2015
Vikram Widge, World Bank
5. The Role of Carbon Markets beyond 2020
Participants shared views on the future of carbon markets, including during a roundtable discussion on how an integrated carbon market might develop and how this could be facilitated in the new climate change agreement. Questions included: What role are carbon markets expected to play in national plans to reduce emissions? Is cross-border trade likely; if so, on what time scale? How could any such cross-border trade be arranged (e.g., linking of domestic mechanisms, bilateral agreements, internationally goverened mechanisms, via technical infrastructure)? What would be required in the new climate change agreement to facilitate this?
Pauline Kennedy, PMR Secretariat
Options for How an Integrated Carbon Market Could Emerge in the Future
Robin Rix, UNFCCC
UNFCCC: Stock-take on Carbon Markets
Andrei Marcu, Centre for European Policy Studies
Report Back: Centre for European Policy Studies' "Markets in the 2015 Agreement" Meeting
10:30 Break
Panel Discussion: Perspectives on Carbon Markets and the New Climate Change Agreement
Moderator: Jonathan Grant, PwC
12:30 Lunch
6. Accounting and Avoiding "Double Counting"
The international transfer of carbon assets can help countries meet national mitigation goals or help channel finance to low emissions development. In this context, GHG accounting and references for avoiding double counting at an international level is topical. The session included an overview of accounting and double counting issues, followed by a breakout group exercise in which an expert faciliated a discussion on several topics related to GHG accounting and the avoidance of double counting.
Christina Hood, International Energy Agency
Accounting and Avoiding "Double Counting": Issues for the 2015 Agreement
Group Exercises: Accounting and Avoiding Double Counting
16:00 Break
7. Role and Form of Crediting Mechanisms beyond 2020
Several Implementing Country Participants hope to use scaled-up crediting mechanisms to achieve emission reduction goals. However, the role and form of crediting mechanisms beyond 2020 is uncertain. Workshop participants discussed a list of questions on this topic including: what is the likely scale of demand for and supply of credits beyond 2020? What types of crediting approaches will be used beyond 2020? How should crediting mechanisms take into account INDCs? Can existing modalities and procedures form the basis for a new or reformed crediting mechanism?
Lambert Schneider
Crediting Mechanisms Beyond 2020
8. Closing and Next Steps
Dirk Forrister, IETA
Xueman Wang, PMR Secretariat
Ian Trim, UK
17:45 End of workshop