EPRI | Energy Systems and Climate Analysis

16th Annual EPRI-IEA-IETA Greenhouse Gas Emissions Trading Workshop
October 18-19, 2016
OECD Headquarters, 2 rue André Pascal, 75775 Paris, France

WORKSHOP OVERVIEW AND INTRODUCTION

Kamel Ben Naceur, Director of Sustainability, Technology and Outlooks (IEA)
Tom Wilson, Senior Program Manager, Electric Power Research Institute
Tom Wilson, Senior Program Manager, Energy Systems and Climate Analysis Program, Electric Power Research Institute (EPRI)

SESSION 1: Paris Agreement – International trading to achieve and surpass NDCs

The Paris agreement creates new momentum for carbon markets, allowing for voluntary use of international carbon trades toward achievement of (or to go beyond) the national targets set in Nationally Determined Contributions (NDCs). This session unpacked provisions relevant to carbon markets in the Paris Agreement and explored different perspectives on the interpretation and implications of the agreement for bottom-up development of carbon markets.

Speakers

Christina Hood, IEA (Chair)
Amy Steen, Legal Officer (Markets/Economic Instruments), UNFCCC
Andrei Marcu, Senior Fellow, Center for Regulation in Europe (CERRE)
Kazuhisa Koakutsu, Deputy Director, Office of Market Mechanisms, Climate Change Policy Division, Ministry of the Environment, Japan
David Hone, Chief Climate Change Adviser, Shell

SESSION 2: Carbon Markets in Asia-Pacific: Updates and Next Steps Post-Paris

This session explored carbon markets in the Asia-Pacific region, including an update on the status of China’s national ETS implementation (2017) as well as the seven ETS pilots. Presentations provided a status update of the respective policies, followed by a roundtable discussion on the current challenges each system faces and next steps with respect to Article 6 of the Paris Agreement and implementation of the NDC’s

Speakers

Jeff Swartz, IETA (Chair)
Xi Liang, University of Edinburgh, Scotland
Hyungna Oh, Professor, Kyung Hee University, Korea
Robert Shih, YC Consultants, Chinese Taipei
Takashi Hongo, Senior Fellow, Mitsui Global Strategic Studies Institute, Japan

SESSION 3: European Union Emissions Trading System – Current Challenges and Future Prospects

This session provided a brief overview of the EU ETS and identified challenges in the coming years. The session explored to what extent the EU ETS, together with other existing market signals, can drive cost‐effective investment in low‐carbon technologies and the gradual phase-out of existing thermal capacity

Speakers

Peter Zapfel, Head of Unit ETS Policy Development and Auctioning, DG CLIMA, European Commission
Trevor Sikorski, Head of Gas, Coal and Carbon, Energy Aspects
Daniele Agostini, Head of Low Carbon Policies and Carbon Regulation, Enel

SESSION 4: Paris Agreement – Article 6.4 Mechanism

A new market mechanism is to be established by the UNFCCC under Article 6.4 of the Paris agreement, building on experience gained with existing mechanisms including the CDM and JI. This session explored the expected form of this new mechanism, and the process by which it will be developed.

Speakers

Dave Turk, IEA (Chair)
Hugh Sealy, Department of Public Health and Preventive Medicine in the School of Medicine at St. George’s University Grenada
Karl Upston-Hooper, General Counsel, GreenStream Network
Stig Schjolset, Thomson Reuters Point Carbon
Kelley Kizzier, DG-CLIMA, European Commission

SESSION 5: Aviation Update

The International Civil Aviation Organisation (ICAO) has agreed on a global market-based-measure to offset global aviation emissions beyond 2020 levels. This session clarified what has been agreed in ICAO, the consequences for aircraft operators, and the demand for offset credits. The session discussed the political considerations surrounding this global agreement, in light of the EU’s and other regions’ approaches to covering “domestic” aviation emissions in regional emissions trading systems.

Speakers

Rick Saines, IETA Vice-Chair (Chair) Michael Gill, Executive Director, Air Transport Action Group (ATAG)
Laurence Graff, European Commission
David Antonioli, CEO, Verified Carbon Standard

SESSION 6: Evolution of GHG Emissions Trading in North America

Across North America, regional GHG emissions trading programs are rapidly evolving and expanding their footprint. Will these subnational programs evolve into larger regional efforts through linking or do they provide the underpinnings of possible national ETS in the coming years? Sub-national efforts to develop and implement GHG markets in Ontario, Manitoba, as well as continued market evolution in CA and the RGGI states will be impacted in the coming years by the uncertain implementation of the Clean Power Plan. This session highlighted key recent developments in new GHG emissions trading programs in the United States, Canada and Mexico.

Speakers

Tom Wilson, EPRI (Chair)
Jonas Monast, Professor, University of North Carolina School of Law
John Bistline, Technical Leader, EPRI
Ashley Conrad Saydah, Deputy Secretary for Climate Policy, California Environmental Protection Agency
David Sawyer, CEO, EnviroEconomics Inc.

SESSION 7: Linkages and Carbon Clubs

Economic analysis shows benefits and costs to linking carbon markets and developing carbon clubs. This session discussed the benefits of trading and linking, and considerations when linking carbon markets. The panel shared experiences from around the world on their recommendations and lessons learned about linking carbon markets or creating regional carbon clubs.

Speakers

Dirk Forrister, IETA (Chair)
Steve Rose, Technical Executive, EPRI
Ingrid Jegou, Senior Manager, International Centre for Trade and Sustainable Development (ICTSD)
Bianca Sylvester, Networked Carbon Markets, World Bank
Henry Derwent, Senior Advisor, Climate Strategies