UK Parliament’s call for Paris agreement to facilitate carbon market links

IETA has published a press release where it welcomes the release of a UK Parliament committee report which calls for the Paris climate agreement to enable links between carbon markets around the world.

The UK Parliament’s Energy and Climate Change Committee’s report, Linking Emissions Trading Systems, follows an extensive inquiry into the matter, including evidence from IETA. It recommends that the climate change framework to be agreed in Paris at the end of this year “should promote the use of carbon markets and facilitate the future linking of emissions trading systems”.

It adds: “As emissions trading systems develop and mature around the world there will be increasing opportunity for them to grow and expand so that emissions can be reduced in the most cost-effective way,” and calls on the government to promote designs compatible with the EU ETS when engaging with regions developing trading systems.

“It’s great to see the UK Parliament recognise the benefits of linkage between carbon markets, particularly in the context of the forthcoming Paris climate agreement,” says IETA President and CEO Dirk Forrister. “We look forward to supporting UK leaders as they engage with other parties to ensure that the Paris agreement will enable the greatest environmental outcomes at lowest cost – which is what linked carbon markets can deliver.”

“Around 40% of global GDP is now subject to an emissions trading system, and this number continues to grow,” says Jeff Swartz, IETA’s Director of International Policy. “Given this spread of carbon markets, governments should work to harmonise trading systems so that they can connect.”