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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
dc.contributor.author
Hedley, Adam
dc.date.accessioned
2017-04-24T16:42:42Z
dc.date.available
2017-04-24T16:42:42Z
dc.date.issued
2016-04
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.
en
dc.identifier.uri
http://hdl.handle.net/10986/26430
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
CARBON POLICY
dc.subject
CARBON PRICING
dc.subject
PARIS AGREEMENT
dc.subject
GREENHOUSE GAS EMISSIONS
dc.subject
REGULATION
dc.subject
LEGAL FRAMEWORK
dc.subject
GOVERNANCE
dc.subject
CARBON MARKETS
dc.subject
CARBON CLUB
dc.title
Networked Carbon Markets
en
dc.title.subtitle
The Regulatory Framework to Support Carbon Market Linkage--A Concept Paper
en
dc.type
Report
en
okr.date.disclosure
2017-04-07
okr.doctype
Publications & Research
okr.doctype
Economic & Sector Work :: Other Environmental Study
okr.docurl
http://documents.worldbank.org/curated/en/592101491569237251/Networked-carbon-markets-the-regulatory-framework-to-support-carban-market-linkage-a-concept-paper
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b084a98bb5_1_0
okr.identifier.internaldocumentum
27339327
okr.identifier.report
114111
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/592101491569237251/pdf/WP-PUBLIC-RegulatoryFrameworkWeb.pdf
en
okr.topic
Environment :: Carbon Policy and Trading
okr.topic
Environment :: Climate Change Mitigation and Green House Gases
okr.topic
Environment :: Environmental Economics & Policies
okr.unit
GCC - Fund Management Unit (GCCFM)

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