Report

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

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collection.link.13
https://openknowledge.worldbank.org/handle/10986/2114
collection.name.13
Other Environmental Study
dc.contributor.author
Zaman, Peter
en_US
dc.contributor.author
Hedley, Adam
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dc.date.accessioned
2017-04-24T16:42:42Z
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dc.date.available
2017-04-24T16:42:42Z
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dc.date.issued
2016-04
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dc.description.abstract
This paper considers the regulatory frameworkthat is required to be put in place in order to support theestablishment of carbon market linkages, in particular,in light of the bottom-up approach contemplated by theParis Agreement. Section two describes the key purpose ofthe paper and details the assumptions and other factorsthat are made in this paper concerning ‘networking’—aform of linking contemplated by the World Bank Group’s Networked Carbon Markets (NCM) initiative. The key assumption in the paper is that the parties seeking to link two or more carbon markets will, before considering theregulatory elements required for linking, have concluded that there must be political, administrative and/oreconomic rationale for linking. Section three considers the impact of the Paris Agreement, in particular Article 6, on carbon market linkage.Section four introduces the concepts of governance, legal and regulatory frameworks and seeks to draw a distinction between these three concepts, whilst recognising there is a degree of overlap.In section five discuss the regulatory framework that we consider to be necessary for carbon market linking when considered in the context of traditional linkage models (i.e., those that require greater homogeneity in order to establish linkages).In section six analyses a number of existing trading arrangements to assess whether they offer a suitable foundation for future linked carbon markets. This would potentially enable existing regulatory frameworks to be used as a means of jump-starting the linkage process.Section seven includes a more detailed discussion of the World Bank Group’s proposal for networking and the concept of mitigation value (MV) which is a fundamental element of networking. We consider the variety of modalities for linking, including the networking modeland the NCM transaction scenarios discussed in the NCM Concept Paper. This relates to the acceptance by one country of its MV assessment by a third party assessor. Although we highlight some of the new challenges this will throw up, we conclude that further development about how MV could be operationalised will be required before guidance on the regulatory frameworkfor networking can be further advanced.
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dc.identifier.uri
http://hdl.handle.net/10986/26430
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dc.language
English
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dc.language.iso
en_US
en_US
dc.publisher
World Bank, Washington, DC
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dc.rights
CC BY 3.0 IGO
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dc.rights.holder
World Bank
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dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
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dc.subject
CARBON POLICY
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dc.subject
CARBON PRICING
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dc.subject
PARIS AGREEMENT
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dc.subject
GREENHOUSE GAS EMISSIONS
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dc.subject
REGULATION
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dc.subject
LEGAL FRAMEWORK
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dc.subject
GOVERNANCE
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dc.subject
CARBON MARKETS
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dc.subject
CARBON CLUB
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dc.title
Networked Carbon Markets
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dc.title.subtitle
The Regulatory Framework to Support Carbon Market Linkage--A Concept Paper
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dc.type
Report
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okr.date.disclosure
2017-04-07
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okr.doctype
Publications & Research
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okr.doctype
Economic & Sector Work :: Other Environmental Study
en_US
okr.docurl
http://documents.worldbank.org/curated/en/592101491569237251/Networked-carbon-markets-the-regulatory-framework-to-support-carban-market-linkage-a-concept-paper
en_US
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b084a98bb5_1_0
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okr.identifier.internaldocumentum
27339327
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okr.identifier.report
114111
en_US
okr.imported
true
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okr.pdfurl
http://documents.worldbank.org/curated/en/592101491569237251/pdf/WP-PUBLIC-RegulatoryFrameworkWeb.pdf
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okr.topic
Environment :: Carbon Policy and Trading
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okr.topic
Environment :: Climate Change Mitigation and Green House Gases
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okr.topic
Environment :: Environmental Economics & Policies
en_US
okr.unit
GCC - Fund Management Unit (GCCFM)
en_US

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