Significant progress has been made in carbon market development around the world over the past weeks. A few key recent developments in carbon markets demonstrate the global trend towards using carbon markets as an effective tool to mitigate climate change.
“Carbon Pricing in the Americas Declaration”
The One Planet Summit held in Paris recently highlighted the cooperation on carbon markets from national and subnational jurisdictions from around the world. Leaders from Canada, Costa Rica, Mexico, Chile, Columbia, and Premiers from Canadian provinces and Governors from US States attended the summit. The representatives affirmed their commitment to carbon pricing and climate action through the Carbon Pricing in the Americas Declaration.
A significant aspect of the declaration is that it calls on the signatories to create a platform to cooperate and align carbon pricing systems and promote carbon markets in order to maximize climate action. This call to align carbon markets is significant progress towards countries’ ability to meet climate reduction goals.
China’s National Carbon Market
Carbon market development doesn’t stop there. China announced its national carbon market that covers its power sector. This a big step forward for continued development of global carbon markets. China’s cap and trade program will cover around 3,300 million tons of carbon emissions. To put that in perspective, the size of Ontario’s carbon market is 143 million tonnes and covers the power, oil and gas, cement, lime, metals, chemicals, and pulp & paper sectors.
China’s carbon market will continue to grow as more industries are covered by its cap and trade program. And the EU plans to coordinate its own carbon market with China. EU Climate Commissioner Miguel Arias Cañete announced enhanced cooperation with the possibility for linking markets in the future.
Carbon Markets Around the World and in Ontario
Other jurisdictions around the world such as Brazil, Ukraine, Turkey and Japan are currently considering cap and trade programs to effectively meet their climate commitments. The continued development of carbon markets around the world will be an important consideration for Ontario. Let’s hope that the positive trends in carbon market development continue through 2018.
The Climate Solutions Group is embracing and pursuing the opportunities currently available through carbon markets. Our business will grow as carbon markets continue to develop and mature around the world.