At a time when mitigation efforts need to be scaled up to unprecedented levels to reach the two degrees Celsius target, pricing carbon becomes an increasingly important part in the policy mix. If ETSs are well-designed, trading in allowances offers a cost-efficient solution. Linking different domestic ETSs can further increase these efficiencies. Governments are increasingly discussing linking their ETSs with others and the first linkage agreements have been reached. Linkage between ETSs does, however, require some harmonization between key elements of the respective schemes.
This session discussed the potential for ETSs and linkage of such schemes to advance international climate change mitigation efforts. Given the importance of the Clean Development Mechanism for mitigation investments in developing countries and the threats for its future, this session also addressed challenges and opportunities for the international offset market.
Henry Derwent, Chief Executive, Climate Strategies
Eunjung Kim, Principle Researcher, Korea Legislation Research Institute
Jo Tyndall, Climate Change Ambassador, New Zealand
Chair: Ingrid Jegou, ICTSD