Carbon markets are fast becoming a key policy instrument to combat climate change around the world. Following on from the success of the flexibility mechanisms of the Kyoto Protocol to diffuse carbon pricing to all regions of the world during the Protocol’s first commitment period, the development of new carbon pricing instruments at regional, national and sub-national levels has been rapid in recent years, and market based instruments continue to gain momentum. Companies that are not already carbon constrained will need to prepare themselves for carbon legislation in the short to medium term, and a low-carbon economy in the long run.
This session will discuss the feasibility of options for integrating carbon market instruments in a 2015 climate change agreement. Representatives from business, UN, government and other stakeholder groups will identify basic principles and factors for governments and policymakers to help ensure that carbon pricing instruments, such as emissions trading schemes, taxes on carbon emissions, drive emission reductions effectively and with the lowest possible economic cost.