Role of carbon pricing mechanisms in financing a sustainable transition to a low-carbon society

Organised by
ERCST & I4CE
13 December 2017
|
Paris, France - Europe
|
14:00-17:30

In collaboration with I4CE, Institute for Climate Change Economics, ERCST organised in Paris a meeting on The role of carbon pricing mechanisms in financing a sustainable transition to a low-carbon society

This meeting was held in conjunction with President Macron's high-level summit on carbon finance and aimed to bring together stakeholders to have an open discussion about the role that carbon pricing mechanisms, including carbon markets, can play in financing the transition to a low-carbon society.

14:00 - 14:10
Welcome and introduction
A. Marcu (ERCST/ICTSD) & B. Leguet (I4CE)
14:10 - 14:25
Carbon finance and the UNFCCC process
P. Watkinson, Chair SBSTA
14:25 - 14:40
Looking ahead to COP24
P. Salek, State Secretary of Poland

 

A number of developed countries already have carbon price mechanisms in place, such as taxes or emission trading systems. The public revenues generated by these mechanisms should ideally be used to further finance the transition to a low-carbon society, and alleviate the short to medium term social and economic problems associated with this transition. Some of the main challenges developed countries currently face include diversifying the economy, ensuring a just transition for workers in, and regions with, high-carbon sectors, and shielding certain sectors faced with competitiveness caused by the asymmetries in carbon price mechanisms over the world. This panel will discuss what financial resources should be used or are already being used, including the various funds included in the EU ETS. 

 

Carbon pricing mechanisms are still rare in developing countries. However, carbon price mechanisms are starting to be developed in a number of countries all over the world. Future revenues generated from these mechanisms could be directed towards further financing sustainable development and low-carbon growth. Besides domestic sources, there are several international mechanisms already in place that can be used by developing countries, such as the REDD+, JCM or auctioning revenues generated by the EU ETS. Other mechanisms are currently under development, such as the future Article 6 mechanism of the Paris Agreement or CORSIA, and could greatly increase the financial resources available for developing countries in the coming years. This panel will focus on which sources are already being used, and how they could be used more effectively. Moreover, the potential of these future carbon price mechanisms to finance sustainable development and transition in developing countries will be discussed. 

17:00 - 17:20
Carbon Finance and the Climate Action Agenda for COP24
T. Chruszcow, High level climate change champion for COP24

      I4CE is an initiative of Caisse des Dépôts and Agence Française de Développement. The Think Tank provides independent expertise and analysis when assessing economic issues relating to climate & energy policies in France and throughout the world. I4CE aims at helping public and private decision- makers to improve the way in which they understand, anticipate, and encourage the use of economic and financial resources aimed at promoting the transition to a low-carbon economy I4CE benefits from a large network of partners.