scholarly journals Non-additionality, Overestimation of Supply, and Double Counting in Offset Programs: Insight for the Mexican Carbon Market

2021 ◽  
pp. 191-221
Author(s):  
Marcela López-Vallejo
Keyword(s):  
Clean Development Mechanism ◽  
Emission Trading ◽  
Paris Agreement ◽  
Double Counting ◽  
Trading Systems ◽  
Market Participants ◽  
Wide Variability ◽  
Flexible Mechanisms ◽  
Mitigation Projects ◽  
Emissions Trading System

AbstractMexico utilizes an emissions trading system as one of its carbon pricing instruments. Mexico’s planning, like that of other countries, includes flexible mechanisms such as offsets. Offsets allow market participants to compensate for their emissions through mitigation projects. Offsetting via participation in the Clean Development Mechanism and Joint Implementation was fundamental to the Kyoto Protocol. In contrast, the Paris Agreement is ambiguous about its use. Other national or regional offset programs, such as the EU, Australia, New Zealand, Japan, or Korea, work within emission trading systems. Subnationally, the California-Quebec program has been in effect since 2014. As Greenhouse Gases (GHGs) are global, offsetting allows market participants to compensate for their emissions through mitigation projects, whether domestically or abroad. Given their global scope, such programs present a wide variability in quality. This chapter presents an overview of offset programs worldwide and argues that non-additionality, overestimated supply, and double counting are their three most pressing quality problems. This analysis sheds light upon the nascent Mexican system and its offset program.

Common but Differentiated Responsibilities and Respective Capabilities: Did This Principle Ever Exist?

2021 ◽  
pp. 1-7
Author(s):  
Armin Rosencranz ◽  
Kanika Jamwal
Keyword(s):  
Climate Change ◽  
Clean Development Mechanism ◽  
Clean Energy ◽  
Developed Countries ◽  
Developing Nations ◽  
Paris Agreement ◽  
Significant Shift ◽  
Historical Responsibility ◽  
Common But Differentiated Responsibilities ◽  
Self Differentiation

This article argues that the UN Framework Convention on Climate Change (UNFCCC)’s conception of common but differentiated responsibilities and respective capabilities (CBDRRC) was never effectively implemented through the Kyoto Protocol. The investments under the Kyoto Protocol’s Clean Development Mechanism suggest that CBDRRC has been used by developed countries to buy a “right to pollute”, i.e., maintaining or even increasing their greenhouse gas emissions, while investing in clean energy in developing nations, thus defeating the essence of CBDRRC as intended under the UNFCCC. Second, it points out that the Paris Agreement reflects a significant shift in the CBDRRC, both in terms of its textual understanding as well as its implementation. A qualifier, “in the light of national circumstances”, was added to the principle of CBDRRC in the Paris Agreement, allowing a form of voluntary self-differentiation. This qualifier diluted a top-down, objective analysis of States’ commitments. For several scholars, this shift has meant a softening of the principle, making the “differentiation” more dynamic and flexible. In the authors’ opinion, the qualifier is a fundamental modification of the principle to make it politically more palatable. It completely disregards the notion of historical responsibility for climate change, which was the cornerstone of CBDRRC as conceived under the UNFCCC. Therefore, rather than presenting a more flexible understanding of UNFCCC’s conception of CBDRRC, the Paris Agreement marks a total departure from it. Lacking an explicit redefinition of the principle of CBDRRC, it is misleading to contend that the Paris Agreement is still anchored in it.

scholarly journals Canadian Challenges in Implementing the Kyoto Protocol: A Cause for Harmonization

2020 ◽  
Author(s):  
Elisabeth DeMarco ◽  
Robert Routliffe ◽  
Heather Landymore
Keyword(s):  
Kyoto Protocol ◽  
Emissions Trading ◽  
Legal Issues ◽  
Current Status ◽  
Trading System ◽  
Trading Systems ◽  
Legal Context ◽  
Ghg Reduction ◽  
The Impact ◽  
Emissions Trading System

On 17 December 2002, Canada ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Kyoto Protocol), taking on binding targets to reduce Canadian emissions of greenhouse gases (GHGs). Canada's ratification decision and the proposed domestic emissions trading system forming part of Canada's Kyoto implementation plan continue to be the source of considerable disagreement and conflict between the provinces and thefederal government regarding: the practical challenges associated with multiple Canadian jurisdictions implementing emissions trading systems: the current status and legal issues associated with covenants between industry and government(s) to enforce GHG reduction targets; the legal jurisdiction over domestic emissions trading system(s); and the impact on interprovincial and international trade. Each ofthese issues is examined in the unique Canadian legal context. The authors conclude that many ofthe most significant challenges may be mitigated through harmonization and coordination byfederal and provincial governments in a manner that allows for local concerns to be addressed without fragmenting the Canadian emissions markets.

The evolution of China’s emission trading mechanisms: From international offset market to domestic Emission Trading Scheme

2018 ◽  
Vol 36 (7) ◽  
pp. 1214-1233 ◽  
Author(s):  
Feng Ba ◽  
Paul R Thiers ◽  
Yonggong Liu
Keyword(s):  
Clean Development Mechanism ◽  
Emission Trading ◽  
Policy Instruments ◽  
Emission Trading Scheme ◽  
Cap And Trade ◽  
High Emission ◽  
Trading Mechanisms ◽  
Trading Scheme ◽  
New Policies ◽  
Development Mechanism

With the decline of the international market under the Clean Development Mechanism, China is establishing a national Emission Trading Scheme by setting up emission cap and trade rules for high emission industries in seven pilot areas. The shift from the international to domestic market and from an offset program to a true cap and trade mechanism requires several significant changes. This paper reviews the development and evolution of China’s carbon trading market policy instruments. We find that there are substantial changes in both structure and policy. First, Emission Trading Scheme is a broad cap-and-trade mechanism with many new stakeholders added to those already involved in China’s Clean Development Mechanism. Second, the administrative structure is decentralized compared to that of the Clean Development Mechanism. Third, while the Emission Trading Scheme is best thought of as a new policy, China’s experience with the Clean Development Mechanism influences that policy. A large number of Clean Development Mechanism projects are being converted into offsets for the national Emission Trading Scheme market, and many institutional stakeholders that emerged during the Clean Development Mechanism are now involved in the Emission Trading Scheme. The combination of new policies and stakeholders, a decentralization of structure and the conversion of Clean Development Mechanism projects raise questions regarding the integrity of the cap and the enforcement of compliance as the Emission Trading Scheme is expanded into a nationwide system.

scholarly journals Can Market-based Measures Stimulate Investments in Green Technologies for the Abatement of GHG Emissions from Shipping? A Review of Proposed Market-based Measures

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Anastasia Christodoulou ◽  
Dimitrios Dalaklis ◽  
Aykut Ölcer ◽  
Fabio Ballini
Keyword(s):  
Alternative Fuels ◽  
New Technologies ◽  
Ghg Emissions ◽  
Emission Trading ◽  
Paris Agreement ◽  
Emission Trading System ◽  
Green Technologies ◽  
Trading System ◽  
International Maritime Organisation ◽  
International Fund

In order for the maritime sector to align itself with the targets set by the Paris Agreement, it should reduce its GHG emissions by at least 50% by 2050 compared to 2008 with the ultimate aim to phase them out entirely. It is along these lines that in April 2018 the International Maritime Organisation (IMO) developed a strategy, consisting of a range of potential technical and operational measures to reduce GHG emissions from international shipping, ranking from improvements on ship design to the employment of alternative fuels. In order to stimulate the adoption of these policies, the IMO also considers the implementation of market-based measures (MBM) that will provide additional incentives to shipowners to invest in new technologies and uptake of cleaner fuels. The MBMs analysed in this paper include two different policies proposed by different countries and associations for the abatement of GHG emissions from shipping: a) the International Fund for GHG emissions from ships that includes the imposition of a global levy on marine bunker fuel for all vessels and b) the Maritime Emission Trading System (METS) that requires all maritime companies to buy/sell emission allowances to meet their annual emission reductions targets, setting a cap on global shipping emissions. This paper presents and analyses these two diverse MBMs, highlighting their main advantages and drawbacks. The scope of this paper is to investigate the potential of these MBMs to incentivise investments in new technologies and alternative fuels, both essential for the decarbonisation of the maritime sector.

scholarly journals The Flexible Mechanisms to Combat Climate Change: A Critical View of their Legitimacy

2012 ◽  
Vol 2 (2) ◽  
Author(s):  
Rosa M. Fernández Egea
Keyword(s):  
Climate Change ◽  
Emission Trading ◽  
Minimum Cost ◽  
Greenhouse Gases Emissions ◽  
New Business ◽  
Reduction Of Emissions ◽  
Environmental Integrity ◽  
Combat Climate Change ◽  
Equitable Treatment ◽  
Flexible Mechanisms

The Kyoto Protocol makes available the use of three economic mechanisms as a supplementary way of mitigating climate change: joint implementation, clean development mechanism and emission trading. They share the same rationale, which is to provide flexibility to achieve the compliance of the emission targets, allowing for the reduction of emissions at a minimum cost by efficiently allocating the responsibilities between agents. The new business opportunities they offer have attracted the attention of most developed and emerging countries. However, it is doubtful that they can bring an adequate solution in stabilizing and reducing greenhouse gases emissions, threatening the environmental integrity of the climate change regime (CCR); nor do they offer a fair and equitable solution to the challenges of global warming. Therefore, it is important that their use remains supplemental to the main goal of reducing and stabilizing green house gases emissions. As a matter of fact, sustainable development could only be achieved if economic efficiency is balanced with environmental integrity and equitable treatment.

scholarly journals Derechos de emisión temporales procedentes de actividades de forestación y reforestación en el EU ETS

2011 ◽  
Vol 7 (14) ◽  
pp. 21
Author(s):  
Ignacio Bachiller Méndez ◽  
José Luis Fernández-Cavada Labat ◽  
Jaime Martín Juez
Keyword(s):  
Climate Change ◽  
European Union ◽  
Future Development ◽  
Clean Development Mechanism ◽  
Emissions Trading ◽  
Eu Ets ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
Flexible Mechanisms ◽  
The Eu

The authors have assessed the regulatory framework set by the UNFCCC (United Nations Frame Convention on Climate Change), the Kyoto Protocol and its Flexible Mechanisms, including the CDM (Clean Development Mechanism), and the EU ETS (European Union Emissions Trading Scheme). After this general overview, the article shows how afforestation and reforestation activities have been incorporated into the CDM process and its current consideration under the EU ETS. Transaction costs of these types of CDM project activities are analyzed, together with the state of the temporary allowances market. Finally, taking into account the above mentioned elements, the authors draw several conclusions on the opportunity and expectations of the future development of this market.

Market-based Climate Policy in China? The Case of Emissions Trading Systems

2019 ◽  
Vol 11 (04) ◽  
pp. 46-59
Author(s):  
Erik BAARK
Keyword(s):  
Climate Change ◽  
Climate Policy ◽  
Carbon Emissions ◽  
Emissions Trading ◽  
Chinese Government ◽  
Negative Consequences ◽  
Trading System ◽  
Political Issues ◽  
Trading Systems ◽  
Emissions Trading System

China recognises the need to reduce carbon emissions in order to avoid negative consequences from climate change in the future. Therefore, the Chinese government initiated seven emissions trading system (ETS) pilots in 2013 and began to develop China’s national ETS in 2017. However, Chinese efforts to implement ETS have encountered legal, institutional and political issues that must be solved so that a national ETS could help to mitigate emissions in China.

Double counting and the Paris Agreement rulebook

Science ◽  
2019 ◽  
Vol 366 (6462) ◽  
pp. 180-183 ◽  
Author(s):  
Lambert Schneider ◽  
Maosheng Duan ◽  
Robert Stavins ◽  
Kelley Kizzier ◽  
Derik Broekhoff ◽  
...  
Keyword(s):  
Paris Agreement ◽  
Double Counting
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