Recent weeks saw a hectic intellectual dynamism for carbon markets in the climate community. Parties reflected on many thorny issues that highlighted the role of internationally transferred mitigation outcomes ITMOs in achieving nationally determined contributions NDCs and how to ensure environmental integrity, transparency, and the avoidance of double accounting article 6.
It is true that the European Union, for example, as a pioneer in designing an emissions trading scheme ETS , delivers rich experience and lessons to the rest of the world for constructing their own initiatives. What seemed missing or inadequately addressed in these discussions, however, is the elaboration on those parallel efforts happening outside Europe.
To share some of the spotlight with emerging carbon markets in the Asia-Pacific is pressingly needed and would contribute geographical diversity to the discussion. Numerous literature indicates that linking carbon markets across boarders would produce environmental and economic benefits.
Adding to those benefits, the linkage could enhance transparency on GHG emissions accounting and reporting and facilitate information sharing of climate action. A closer look at article 6. An enhanced and flexible transparency framework was enshrined in article 13, requiring all parties to regularly submit a national GHG inventory and inform of implementation progress paragraph 7 and to undergo expert and peer review paragraph Developing domestic ETSs and linking them, different from the centralized market mechanism under the Kyoto Protocol, is a promising approach to holding parties accountable and giving carbon market a full play in realizing transparency.
Again, the Chinese story is encouraging, at least for those without a mature system for measuring, reporting, and verifying GHG emissions. China has been often criticized for being too protective of its emissions data and not fully reporting emissions.
At present, all the pilots have adopted local rules on GHG emissions, formulated methods and guidelines for accounting emissions from key enterprises, and established reporting platforms. The ministerial decree and policy prescriptions circulated by the National Development and Reform Commission NDRC defined who must report, what to report, and how to report, along with verification guidance and enforcement measures e.
On a more positive note, Canada has been at the forefront of pricing carbon pollution, which constitutes a core element of the Pan-Canadian Framework on Clean Growth and Climate Change announced on December 9, The new plan requires all Canadian jurisdictions to have carbon pricing in place by There are evolving cooperative initiatives between South Korea, Japan, and China, which account for over a quarter of global GHG emissions, in researching, developing, and linking ETSs.
For instance, the High-Level Roundtable on Carbon Market Cooperation in Northeast Asia gathered experts to exchange experience and seek future operation. New Zealand has a relatively mature ETS that has operated since Such agreements should provide inspiration for operationalizing articles 6 and 13 of the Paris Agreement, which serve as a foundation for a future global carbon market as a pathway parties can follow to realize their NDCs in a transparent manner.
He holds an LL. My Account Sign In. Life and Politics in Asia. By Ling Chen for The Diplomat. Click here to subscribe for full access. China emissions trading system. South Korea emissions trading scheme. As Trump looks to quit the Paris Agreement, China is seeking global climate leadership. China's Climate Change Chief on Trump: Kashmiris are skeptical about the appointment of a new interlocutor by the Indian government.
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