(Utilization of International Carbon Market under the Paris Agreement)

2016 ◽  
Author(s):  
Jin-Young Moon ◽  
Jione Jung ◽  
Jihei Song ◽  
Sung Hee Lee
Keyword(s):  
Carbon Market ◽  
Paris Agreement

scholarly journals Linked Carbon Markets: Silver Bullet, or Castle in the Air?

Climate Law ◽  
2016 ◽  
Vol 6 (1-2) ◽  
pp. 142-151 ◽  
Author(s):  
Torbjørg Jevnaker ◽  
Jørgen Wettestad
Keyword(s):  
Carbon Market ◽  
Paris Agreement ◽  
Carbon Markets ◽  
Political Will ◽  
Political Ties ◽  
Political Feasibility ◽  
Climate Policies ◽  
History Of ◽  
Distribution Of Power ◽  
Silver Bullet

Does the Paris Agreement provide a boost to carbon markets? Although carbon markets are spreading globally, so far relatively few links have been established between them. The history of linking indicates that successful efforts are characterized by converging ets design, and, related to this, political will. Moreover, existing links have been facilitated by prior economic and political ties. Such linking processes face significant challenges related to distribution of power and political feasibility. The Paris Agreement does not make the more intrinsic challenges of political linking go away. Moreover, a significant amount of elaboration and clarification of the Paris Agreement remains subject to further negotiations. Nevertheless, Paris confirmed an increasing support for carbon markets: the periodic reviews of state climate policies, shared fulfilment, and common guidance for accounting, together provide a new momentum for the development of carbon markets and the process of linking them. What this boost means for the prospects of a globally interlinked carbon market remains to be seen.

Making international law, making carbon markets

2021 ◽  
pp. 1037969X2110297
Author(s):  
Nicola Silbert
Keyword(s):  
Climate Change ◽  
International Law ◽  
Carbon Market ◽  
Paris Agreement ◽  
Carbon Markets ◽  
History Of ◽  
Colonial Encounter ◽  
Law Making

This article presents an exploratory discussion of Antony Anghie’s history of the making of international law. It provides an accessible introduction to the text and some of the debates surrounding its key arguments. The article goes on to explore Anghie’s arguments in the context of Article 6 of the Paris Agreement. Anghie’s arguments are used to foreground the colonial encounter in carbon market systems, with implications for discussions of Article 6 at the upcoming 26th UN Climate Change Conference of the Parties (COP26) in Glasgow late in 2021.

scholarly journals Blockchain Application for the Paris Agreement Carbon Market Mechanism—A Decision Framework and Architecture

2020 ◽  
Vol 12 (12) ◽  
pp. 5069
Author(s):  
Marco Schletz ◽  
Laura A. Franke ◽  
Søren Salomo
Keyword(s):  
Information Asymmetry ◽  
Heterogeneous Systems ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Innovative Technology ◽  
Decision Framework ◽  
Bottom Up ◽  
Blockchain Technology ◽  
Trade Offs

This paper evaluates the suitability of blockchain technology for the Article 6.2 carbon market mechanism of the Paris Agreement. The bottom-up approach of the Paris Agreement causes challenges to the robust accounting of mitigation outcomes and information asymmetry, both of which result from a high number of heterogeneous emission accounting systems. Blockchain is an innovative technology that can act as an aggregation platform for these fragmented systems while enhancing transparency and automating accounting processes. However, this new technology is not a panacea for all problems, and the trade-offs of applying blockchain technology need to be assessed case by case. We create and apply an eight-step decision framework for testing the applicability of the technology for the Paris Agreement Article 6.2 carbon market mechanism. The analysis shows that, under current mechanism specifications, a blockchain application can enhance transparency and increase automation, thereby eliminating information asymmetry. We outline a system architecture that allows the linking of the heterogeneous systems, the integration of an Article 6.2 exchange mechanism, and the progress tracking of climate targets. This blockchain architecture offers national Parties the opportunity to co-create a decentralised system in line with the bottom-up ethos of the Paris Agreement.

scholarly journals Designing a Blockchain Model for the Paris Agreement’s Carbon Market Mechanism

2020 ◽  
Vol 12 (3) ◽  
pp. 1068 ◽  
Author(s):  
Laura Franke ◽  
Marco Schletz ◽  
Søren Salomo
Keyword(s):  
Selection Criteria ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Carbon Markets ◽  
Governance System ◽  
Market Transparency ◽  
Blockchain Technology ◽  
Technical Requirements ◽  
Climate Action

This paper examines the benefits and constraints of applying blockchain technology for the Paris Agreement carbon market mechanism and develops a list of technical requirements and soft factors as selection criteria to test the feasibility of two different blockchain platforms. The carbon market mechanism, as outlined in Article 6.2 of the Paris Agreement, can accelerate climate action by enabling cooperation between national Parties. However, in the past, carbon markets were limited by several constraints. Our research investigates these constraints and translates them into selection criteria to design a blockchain platform to overcome these past limitations. The developed selection criteria and assumptions developed in this paper provide an orientation for blockchain assessments. Using the selection criteria, we examine the feasibility of two distinct blockchains, Ethereum and Hyperledger Fabric, for the specific use case of Article 6.2. These two blockchain systems represent contrary forms of design and governance; Ethereum constitutes a public and permissionless blockchain governance system, while Hyperledger Fabric represents a private and permissioned governance system. Our results show that both blockchain systems can address present carbon market constraints by enhancing market transparency, increasing process automation, and preventing double counting. The final selection and blockchain system implementation will first be possible, when the Article 6 negotiations are concluded, and governance preferences of national Parties are established. Our paper informs about the viability of different blockchain systems, offers insights into governance options, and provides a valuable framework for a concrete blockchain selection in the future.

scholarly journals Proposal of Implementation Framework of Cooperative Approaches and Sustainable Development Mechanism

2022 ◽  
Vol 14 (2) ◽  
pp. 655
Author(s):  
Huangwei Deng ◽  
Ying Su ◽  
Zhenliang Liao ◽  
Jiang Wu
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Carbon Trading ◽  
Implementation Framework ◽  
The Sustainable Development ◽  
Three Stages ◽  
Development Mechanism

To slow down climate warming and achieve sustainable development, the Paris Agreement attempts to establish cooperative approaches (Article 6.2 in the Paris Agreement) and a sustainable development mechanism (Article 6.4 in the Paris Agreement) for carbon trading. However, deficiencies in implementation exist due to a lack of systematic execution regulations and an integrated management system. To strengthen the effectiveness of the two carbon trading mechanisms for reducing carbon emission, this paper aims to propose an implementation framework of cooperative approaches and a sustainable development mechanism. Based on the international regime theory in global climate change and the nine elements of the market mechanism, the paper makes use of comparative analysis to discuss the type of mechanism, coverage of the system, operational framework, governance framework, and implementation framework of cooperative approaches and a sustainable development mechanism. The main results and conclusions are as follows: (1) Cooperative approaches are considered as project-based and quota-/credit-based carbon market mechanisms. Under cooperative approaches, trading units should be authorized at the international-regional and sub-regional levels. CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3 are the seven types of greenhouse gases that could be traded through cooperative approaches, and they shall be accounted by the unit of CO2-eq. (2) The sustainable development mechanism is considered as an industry-based and credit-based carbon market framework. Under the sustainable development mechanism, trading units should be authorized at the international level. CO2, CH4, N2O, and PFCs can work in the sustainable development mechanism as subject matters. The unit of gases shall be CO2-eq as well. (3) The implementation framework of cooperative approaches ought to follow three stages: project preparation, project submission, and auditing, as well as internationally transferred mitigation outcomes transfer. The implementation framework of the sustainable development mechanism ought to contain three stages: project development and review, project implementation and monitoring, and project acceptance and unit transfer. The authors hope it can work as a guideline for the early implementation stage of the cooperative approaches and sustainable development mechanism to stimulate carbon reduction and further slow climate change.

Impacts of Paris Agreement on Russian economy

2018 ◽  
pp. 76-94 ◽  
Author(s):  
I. A. Makarov ◽  
C. Henry ◽  
V. P. Sergey
Keyword(s):  
Climate Change ◽  
Economic Policy ◽  
Growth Rates ◽  
Paris Agreement ◽  
Gdp Growth ◽  
Russian Economy ◽  
Climate Policies

The paper applies multiregional CGE Economic Policy Projection and Analysis (EPPA) model to analyze major risks the Paris Agreement on climate change adopted in 2015 brings to Russia. The authors come to the conclusion that if parties of the Agreement meet their targets that were set for 2030 it may lead to the decrease of average annual GDP growth rates by 0.2-0.3 p. p. Stricter climate policies beyond this year would bring GDP growth rates reduction in2035-2050 by additional 0.5 p. p. If Russia doesn’t ratify Paris Agreement, these losses may increase. In order to mitigate these risks, diversification of Russian economy is required.

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