Networking Carbon Markets : Key Elements of the Process
The World Bank’s Networked Carbon Markets (NCM) initiative is collaboratively exploring the post-2020tools, services and institutions needed to enhance the transparency, comparability, and fungibility of heterogeneous climate actions, for a connect...
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| Online Access: | http://documents.worldbank.org/curated/en/288301481112027415/Networking-carbon-markets-key-elements-of-the-process http://hdl.handle.net/10986/25750 |
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okr-10986-257502021-05-25T08:56:22Z Networking Carbon Markets : Key Elements of the Process Macinante, Justin COP21 climate change mitigation carbon policy carbon pricing carbon trading mitigation value ICAR International Carbon Asset Reserve emissions trading The World Bank’s Networked Carbon Markets (NCM) initiative is collaboratively exploring the post-2020tools, services and institutions needed to enhance the transparency, comparability, and fungibility of heterogeneous climate actions, for a connectedinternational carbon market. The cost and efficiency benefits of linking will be important for engendering more climate action and supporting the global developmentalgoal to limit global warming to 2°C and aim to limit it to 1.5°C. The NCM initiative aims to enable comparison of different mitigation actions and trade across differentmitigation outcomes in a way that is: inclusive; transparent; efficient; and has environmental integrity. It is founded on the assumptions that firstly, the linking ofdiverse and heterogeneous mitigation actions is desirable;secondly, that governments and market participants needinformation about the schemes with which they enter transactions and the assets they acquire through those transactions; and thirdly, that governments should retainthe sovereignty to act on the information about those other mitigation actions and assets as they see fit. Generally, the form of any linking arrangement will rangefrom a very loose alignment (soft link) to a very tight alignment of key elements (a hard link). Hard linking requires aligning the design featuresof mitigation actions—some of these design features may be easily reconcilable among the linking partners,while others may not. Recognizing that aligning mitigation actions can be a lengthy and costly process, especially once a mitigation action has already been implemented,“networking” is one form of ‘soft’ linking that can offer an alternative solution. Rather than seeking to align mitigation actions, networking is about facilitating trade of the outcomes of those actions by recognizing differences and placing a value on these differences. The services and institutions developed through the NCM initiative might be introduced in a phased manner, initially supporting countries to design robust mitigation actions and facilitating comparability and linkage within countries.It is intended that these services and institutions could help to facilitate linkage bilaterally, before being extended to markets on a regional basis—perhaps through ‘carbonclubs’—and in the long term helping markets to link on a global basis. 2016-12-14T23:18:44Z 2016-12-14T23:18:44Z 2016-07 Report http://documents.worldbank.org/curated/en/288301481112027415/Networking-carbon-markets-key-elements-of-the-process http://hdl.handle.net/10986/25750 English en_US Networked Carbon Markets; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Environmental Study Economic & Sector Work |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
COP21 climate change mitigation carbon policy carbon pricing carbon trading mitigation value ICAR International Carbon Asset Reserve emissions trading |
| spellingShingle |
COP21 climate change mitigation carbon policy carbon pricing carbon trading mitigation value ICAR International Carbon Asset Reserve emissions trading Macinante, Justin Networking Carbon Markets : Key Elements of the Process |
| relation |
Networked Carbon Markets; |
| description |
The World Bank’s Networked Carbon
Markets (NCM) initiative is collaboratively exploring the
post-2020tools, services and institutions needed to enhance
the transparency, comparability, and fungibility of
heterogeneous climate actions, for a connectedinternational
carbon market. The cost and efficiency benefits of linking
will be important for engendering more climate action and
supporting the global developmentalgoal to limit global
warming to 2°C and aim to limit it to 1.5°C. The NCM
initiative aims to enable comparison of different mitigation
actions and trade across differentmitigation outcomes in a
way that is: inclusive; transparent; efficient; and has
environmental integrity. It is founded on the assumptions
that firstly, the linking ofdiverse and heterogeneous
mitigation actions is desirable;secondly, that governments
and market participants needinformation about the schemes
with which they enter transactions and the assets they
acquire through those transactions; and thirdly, that
governments should retainthe sovereignty to act on the
information about those other mitigation actions and assets
as they see fit. Generally, the form of any linking
arrangement will rangefrom a very loose alignment (soft
link) to a very tight alignment of key elements (a hard
link). Hard linking requires aligning the design featuresof
mitigation actions—some of these design features may be
easily reconcilable among the linking partners,while others
may not. Recognizing that aligning mitigation actions can be
a lengthy and costly process, especially once a mitigation
action has already been implemented,“networking” is one form
of ‘soft’ linking that can offer an alternative solution.
Rather than seeking to align mitigation actions, networking
is about facilitating trade of the outcomes of those actions
by recognizing differences and placing a value on these
differences. The services and institutions developed through
the NCM initiative might be introduced in a phased manner,
initially supporting countries to design robust mitigation
actions and facilitating comparability and linkage within
countries.It is intended that these services and
institutions could help to facilitate linkage bilaterally,
before being extended to markets on a regional basis—perhaps
through ‘carbonclubs’—and in the long term helping markets
to link on a global basis. |
| format |
Report |
| author |
Macinante, Justin |
| author_facet |
Macinante, Justin |
| author_sort |
Macinante, Justin |
| title |
Networking Carbon Markets : Key Elements of the Process |
| title_short |
Networking Carbon Markets : Key Elements of the Process |
| title_full |
Networking Carbon Markets : Key Elements of the Process |
| title_fullStr |
Networking Carbon Markets : Key Elements of the Process |
| title_full_unstemmed |
Networking Carbon Markets : Key Elements of the Process |
| title_sort |
networking carbon markets : key elements of the process |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/288301481112027415/Networking-carbon-markets-key-elements-of-the-process http://hdl.handle.net/10986/25750 |
| _version_ |
1764460059743485952 |