Networked Carbon Markets : The Regulatory Framework to Support Carbon Market Linkage--A Concept Paper

Zaman, Peter ; Hedley, Adam

World Bank, Washington, DC

关键词: CARBON POLICY;    CARBON PRICING;    PARIS AGREEMENT;    GREENHOUSE GAS EMISSIONS;    REGULATION;   

RP-ID  :  114111

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper considers the regulatoryframeworkthat is required to be put in place in order tosupport theestablishment of carbon market linkages, inparticular,in light of the bottom-up approach contemplatedby theParis Agreement. Section two describes the key purposeofthe paper and details the assumptions and otherfactorsthat are made in this paper concerning‘networking’—aform of linking contemplated by the World BankGroup’s Networked Carbon Markets (NCM) initiative. The keyassumption in the paper is that the parties seeking to linktwo or more carbon markets will, before consideringtheregulatory elements required for linking, have concludedthat there must be political, administrative and/oreconomicrationale for linking. Section three considers the impact ofthe Paris Agreement, in particular Article 6, on carbonmarket linkage.Section four introduces the concepts ofgovernance, legal and regulatory frameworks and seeks todraw a distinction between these three concepts, whilstrecognising there is a degree of overlap.In section fivediscuss the regulatory framework that we consider to benecessary for carbon market linking when considered in thecontext of traditional linkage models (i.e., those thatrequire greater homogeneity in order to establishlinkages).In section six analyses a number of existingtrading arrangements to assess whether they offer a suitablefoundation for future linked carbon markets. This wouldpotentially enable existing regulatory frameworks to be usedas a means of jump-starting the linkage process.Sectionseven includes a more detailed discussion of the World BankGroup’s proposal for networking and the concept ofmitigation value (MV) which is a fundamental element ofnetworking. We consider the variety of modalities forlinking, including the networking modeland the NCMtransaction scenarios discussed in the NCM Concept Paper.This relates to the acceptance by one country of its MVassessment by a third party assessor. Although we highlightsome of the new challenges this will throw up, we concludethat further development about how MV could beoperationalised will be required before guidance on theregulatory frameworkfor networking can be further advanced.