carbon trading market

Latest Updates on Emission Trading Market

The international trading carbon market contributes significantly to the efforts in reducing global greenhouse gas emissions. There has been a spike in the number of emission trading market around the world, all in an effort to promote the usage of sustainable energy options and reduce the carbon footprint to attain better climate situations and environmental safety. Asides from the European Union trading system, a number of all the emissions trading systems have begun operations in places like Canada or China, South Korea, and the United States. In this article, we provide you with recent updates on the emission trading market.

The Paris climate agreement

Recognizing the importance of the international carbon markets, The Paris agreement was enacted to make room for optimization of international markets and also to strengthen international targets. It also pushed for transparency and accountability for all carbon markets in Paris. In a bid to promote effectiveness in the market mechanisms, the agreement states that all parties are allowed to use international trading of emission allowances to enable them to attain their emission reduction goals while also providing a framework for laid down accounting rules.

The People’s Republic of China has commissioned a new project titled “The Platform For Policy dialogue and cooperation between EU and China On Emissions Trading ”. Its implementation has begun, and the project is targeted at supporting and providing Chinese authorities training to enhance their efforts to develop the Chinese nationwide emissions trading system. This project has also worked to foster cooperation between the European Union and China on emission trading.

To foster multilateral cooperation, the international carbon action partnership ICAP, which has the European commission amongst its founding members, works to link countries and regions of the world that operate the compulsory cap-and-trade system. It serves as a forum for the exchange of ideas and experiences.

Through the PMR, Partnership For Market Readiness, a platform established by the commission, there are efforts to assist about 17 countries in implementing various techniques that can aid in the development of domestic carbon markets.

In North America, a lot of work is ongoing to revive and scale up the emission trading system. For instance, there have been a lot of changes to the system in California which included a cut down on the utilization of offset credits and also a cap decline. Quebec also succeeded in passing an environment that positively influences the cap-and-trade program; this involves the contribution of all revenues from the program to various climate change initiatives and also allowing reforms to industry allocation.

The climate action plan for 2030 was also updated by Quebec as it set plans to achieve carbon neutrality by the Year 2050 through initiatives such as the regional greenhouse gas initiative and the Transport and climate initiative.

Countries in the Caribbean are not also left out in the pursuit of sustainability; Colombia has commenced the designing of a national emissions trading system with its elements currently under review, and the pilot phase is proposed to begin in the year 2023 while Mexico successfully completed its initial year of the emission trading system and had the first allocations and the early quarters of 2021.

Conclusion Emission Trading Market

More countries across the world are getting involved in the activities of emissions trading systems. This inclusivity is targeted at engineering a perfectly integrated effort towards curbing the detrimental effects that can arise from the emission of greenhouse gasses. With various aspects of carbon trading directed at promoting the use of alternative energy sources rather than fossil- fuels, the trajectory of the international carbon market in the coming years is something to look out for.