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  • 24 Jun 2020 10:51 AM | Anonymous member (Administrator)

    London (June 23) — IETA has joined with The European Federation of Energy Traders, the Association of European Energy Exchanges, and Eurogas in calling on the UK government to clarify its plans for carbon pricing after the country leaves the EU Emissions Trading System (ETS).

    The British government last month published plans for a UK ETS to start in 2021, and indicated that it would shortly elaborate plans for a Carbon Emissions Tax as an alternative option.

    The alternative plans currently do not offer the long-term predictability and visibility of carbon pricing beyond 2020, meaning companies are not able to properly hedge their carbon price risk, the associations said in a letter to Alok Sharma, the Secretary of State at the Department for Energy, Business, & Industrial Strategy.

    “It is … unclear to us whether A: The Government is deciding between an ETS or Tax, B: The Government is proposing [a tax] as a back-up in case of issues with an ETS, [or] C: The Government believes that an ETS will not be ready by 2021, and therefore an interim Tax is required,” the associations said.

    “We therefore urge the UK Government to provide clarity on the following matters as soon as possible: 

    1. The approach to carbon pricing in the UK post-Brexit and a timeline indicating the main actions foreseen for the development and implementation of the given approach. Should a linked UK ETS be the chosen option for the future, what would be the milestones to have it established by 1 January 2021? 

    2. The approach to Carbon Price Support in the UK beyond 31 March 2022. 

    3. The Carbon Emissions Tax rate for 2021, and the methodology to set it for the coming year as well as future rates in the event that it is introduced.”

    “The British Government has given plenty of detail on how a UK emissions trading system might work, but it has not yet made clear whether an ETS will be ready to start next January, nor whether it intends to impose a tax as an interim measure,” said Adam Berman, EU Policy Director at  IETA. 

    “Business needs clarity on this as a matter of urgency, so that planning and resources can be directed early enough to ensure compliance with the measures introduced in 2021."

    “We strongly urge the Government to ensure that the new UK ETS will be ready by the end of the transition period, and to prioritise work on a linking agreement between the UK ETS and EU ETS.”

    The letter also recommends that the UK remain part of the EU ETS until such time as a UK ETS can be established and linked to the EU market.

    “The UK and the EU should endeavour to agree a temporary linking arrangement under the terms of the Transition Period in the Withdrawal Agreement,” the four groups said.

    “In the event that the linking of the two systems cannot be agreed and/or implemented initially, the UK should maintain an ETS that is strongly aligned with the EU ETS in order to be able to agree the linking of the two systems in the future.”

    The full text of the letter to the Secretary of State can be found here.

  • 23 Jun 2020 9:36 AM | Anonymous member (Administrator)

    GENEVA, 23 June – Carbon market participants expect the COVID-19 pandemic to weigh on emissions allowance prices for the next two years, with price expectations for the coming decade also dropping, according to IETA’s annual GHG Market Sentiment Survey.

    The survey, conducted by PwC, reveals that respondents expect EU ETS prices to average €31.71/tCO2 in Phase 4 (2021-30), a reduction of 12% from last year’s €36.05/t prediction. By comparison, the December 2020 EUA futures closed at €24.16 on 19 June.

    “It would be unusual for any market to be feeling as optimistic now as it did a year ago,” says Dirk Forrister, IETA CEO and President. “However, it is encouraging that political will remains undimmed, and has even grown stronger in many jurisdictions as lawmakers understand that the post-COVID-19 recovery is an unparalleled opportunity to embed a sustainable and low-carbon pathway to our future.”

    The survey report will feature in a discussion during IETA’s Carbon Market Virtual Series event today at 1600 CET/1000 EDT. The report can be downloaded from the IETA website.

    The poll of 137 IETA member companies and 22 airlines also showed diminished expectations for all the major emissions markets over the coming decade. Respondents expect prices in the Western Climate Initiative, which groups California and Quebec, to be 12% lower over the coming 10 years, while prices in the US Regional Greenhouse Gas Initiative will be 27% lower.

    Prices in Mexico and New Zealand could see the largest drop compared to 2019 expectations, with NZ ETS allowance prices expected to be 35% lower, and Mexican prices 38% lower, than respondents forecasted last year.

    “The coronavirus pandemic has had an incontestable impact on the price outlook for carbon markets worldwide,” says Stefano De Clara, IETA’s Director of International Policy. “But what is most encouraging about the survey findings is that this is only viewed as a temporary challenge, and the appetite for action remains robust and indeed is growing.”

    “This survey reveals bearish sentiment around carbon prices across all emission trading regimes on account of COVID-19, with an upturn not expected for perhaps one to two years. Similarly, the expansion of carbon pricing regimes to other countries is likely to slow,” says Ian Milborrow, Partner at PwC.

    “There are, however, more positive signals around the greater adoption of absolute carbon targets by corporations and a resurgence in customer interest to mitigate the environmental impacts of the products and services they choose. This should underpin pricing for voluntary carbon credits over the medium term,” he adds.

    This year’s survey also investigated the growth of Natural Climate Solutions (NCS) over the last 12 months, and the prospects for NCS to contribute to achieving the goals of the Paris Agreement. Around one-fifth of survey respondents felt that the biggest challenge to wide-scale investment in NCS is the lack of compliance systems that recognise the benefits of carbon storage in natural sinks, while the same number also expressed concerns over the permanence of such removals.

    NOTE: This year’s IETA survey was conducted among IETA members as well as members of the International Air Transport Association, with more than one response per organisation possible, and open from 1 April to 24 April 2020. We received responses from 137 IETA and 22 IATA member representatives, from a broad range of locations and organisation types. Participants were given some freedom to select which sections and subject matter they answered on, and therefore some answers may not add up to 100%.


  • 18 Jun 2020 9:47 AM | Anonymous member (Administrator)

    Contact: press@ieta.org

    TORONTO, 18 June – Emerging economies are tapping carbon pricing to ensure clean, low-emissions development, as profiled in the third and final instalment of IETA’s Carbon Market Business Briefs.  

    Today’s publication of Latin American and South Africa’s briefs showcase how developing countries are turning to market forces to drive clean growth. While the briefs focus on Mexico, Colombia and South Africa, other nations in South America are exploring the use of carbon pricing for the future, including Chile, and will be added to the collection when the details are clearer.

    “These briefs focus on countries where a clear price on emissions is starting to make a real impact in delivering greener development pathways,” says Dirk Forrister, President and CEO of IETA.

    “Businesses are essential to ensuring these goals are met. These briefs can help business leaders become well-informed to play their part in building a clean economy.”

    The latest Carbon Market Business Briefs will be the subject of a webinar today at 4pm Brussels/9am Colombia, as part of the IETA Carbon Market Live series, which is free of charge with advance registration. A Spanish-language event will be held tomorrow, at the same time.


  • 10 Jun 2020 6:22 AM | Anonymous member (Administrator)

    Contact: press@ieta.org   

    GENEVA, 10 June – Carbon pricing is increasingly embedded in economies across Asia, as showcased in the second instalment of IETA’s Carbon Market Business Briefs.

    Today’s publication of Asia and CORSIA briefs show that policymakers are committed to using market signals to drive emissions reductions, from reforms to the region’s first ETS, in New Zealand, through to the development of the world’s first carbon pricing sectoral initiative, CORSIA.

    “We are pleased to see carbon pricing feature prominently in governments’ plans to cut emissions, adapted to suit local priorities and advance the goals of the Paris Agreement,” says Dirk Forrister, President and CEO of IETA. “These local variations are why IETA’s Carbon Market Business Briefs are an essential tool for business executives, because they provide a one-stop shop for the latest information, market insights and links to key resources.”

    Other briefs released today include a look at reformed markets in South Korea and Kazakhstan, China’s eight pilot systems, the use of markets to cut emissions from buildings in Japan, Taiwan’s preparations for emissions trading, and Australia’s baseline-and-offset system.

    The latest Carbon Market Business Briefs will be the subject of a webinar today at 4pm Sydney/2pm Singapore, as part of the IETA Carbon Market Liveseries, which is free of charge with advance registration. The third and final instalment, focusing on Latin America and South Africa, will feature in an event on 18 June.


  • 03 Jun 2020 5:00 AM | Anonymous member (Administrator)

    Contact press@ieta.org

    GENEVA, 3 June – Today IETA announced the launch of its latest collection of Carbon Market Business Briefs, offering business executives a quick guide to each of the main carbon markets in operation around the world.

    “The IETA Business Briefs are written for business leaders who want to stay at the cutting edge of carbon markets and new prospects for growth,” says Dirk Forrister, President and CEO of IETA. “While there are many common features, each market also reflects local characteristics, tailored to local challenges and opportunities – and, in the business of carbon markets, these details matter. These briefs bring all of the essential elements together for a quick view.”

    The latest Carbon Market Business Briefs are scheduled for release in three tranches: Europe and North America today; Asia and CORSIA on 10 June; and culminating on 18 June with the release of our Latin America and South Africa briefs. Each release coincides with a related webinar as part of the IETA Carbon Market Live series, which are free of charge with advance registration.

    With the continued expansion of emissions trading globally, the IETA collection outlines the coverage, deadlines, penalties, flexibilities, trading dynamics and other features for each market. The briefs provide commentary from local IETA members and partners on recent market developments, including the impact of the COVID-19 pandemic and near-global lockdown.

    “Even in these challenging times, countries are considering how they can contribute greater ambition to advance the goals of the Paris Agreement,” Forrister adds. “We expect increasing use of markets to drive deeper emission reductions, foster innovation and stimulate climate-friendly economic growth. As these markets expand, we hope to update these Business Briefs regularly to enable more companies to pursue the new opportunities they create.”


  • 16 Mar 2020 2:30 PM | Anonymous

    LONDON, 16 March - The International Emissions Trading Association (IETA) welcomes the decision by the Council of the International Civil Aviation Organisation (ICAO) to approve the first six programmes that will provide the Eligible Emissions Units for compliance use in its Carbon Offset Reduction Scheme for International Aviation (CORSIA).

    The six programmes are:
    • American Carbon Registry (ACR)

    • China GHG Voluntary Emission Reduction Program
    • UNFCCC Clean Development Mechanism (CDM)
    • Climate Action Reserve (CAR)
    • The Gold Standard
    • Verified Carbon Standard Program (VCS).

    “We’re delighted that ICAO has now created the clarity that airlines need in order to source emission reduction units for compliance.  Investors can ramp up to begin supplying these reductions to the new market mechanism,” said Dirk Forrister, IETA chief executive officer.

    “ICAO’s focus on high quality carbon reductions will act as a strong incentive to operators of other such programmes to set the bar high when it comes to compliance instruments.”

    The ICAO Council also gave conditional approval to two further offset standards, subject to certain amendments to their rules.

    For the first phase (also known as the pilot phase) of the CORSIA mechanism, which lasts from 2021 to 2023, only emission reductions issued to projects that started their first crediting period from 1 January 2016 and emissions reductions that occurred through 31 December 2020 will be eligible for use.

    “The Council’s adherence to robust emissions unit criteria combined with the imposed restriction on historical emissions reductions brings the high environmental integrity we have been calling for,” said Eva Weightman, IETA’s Director for Aviation.

    The full text of the Technical Advisory Body’s recommendations on CORSIA eligible emissions units that was approved by the Council can be found here.


  • 13 Feb 2020 2:50 PM | Anonymous member (Administrator)

    IETA welcomes the news that lawmakers in the state of Virginia yesterday voted to approve legislation that paves the way for the state to join the Regional Greenhouse Gas Initiative, the oldest greenhouse gas cap-and-trade market in the United States.

    “This is great news for the climate, coming in a year that focuses on greater ambition around the world,” said Dirk Forrister, IETA’s CEO. “It’s further evidence that market mechanisms are the most efficient and low-cost way to achieve the greenhouse gas cuts that must be made if we’re to stay in line with the Paris Agreement goals.”

    The Virginia Clean Economy Act instructs the state’s Department of Environmental Quality to implement cap-and-trade rules and prepare to auction emission allowances “consistent with the RGGI programme.”

    Previous legislation set the state-wide limit on emissions from power generation at 27.16 million short tons a year in 2021, a cap that will decline at 3% a year in line with the RGGI Model Rule that all participating states adopt.

    “The passage of these bills opens the way for Virginia to fully join RGGI and will lead to greater liquidity and market activity,” Justin Johnson, IETA consultant said. “This is good news for utilities and consumers alike.” 

    The RGGI market expanded from nine to ten member states at the start of 2020, as New Jersey re-joined the market after an hiatus of eight years. 


  • 09 Jan 2020 3:42 PM | Anonymous member (Administrator)

    GENEVA, 9 January - The Governing Council of the International Emissions Trading Association is delighted to announce the appointment of three carbon market pioneers as IETA Honorary Fellows. 

    Vikram Widge, International Finance Corporation. Until recently, Mr. Widge served as the Global Head of Climate Finance and Policy at the International Finance Corporation (IFC), the private sector focused arm of the World Bank Group. During his 25-year tenure, he developed and managed IFC’s carbon finance business, including delivering products like the Carbon Delivery Guarantee to bridge credit risk between emerging market sellers and European buyers, and the award-winning Forests Bond that linked interest payments to forestry carbon credits. For a period, he oversaw the Group’s cross-cutting carbon market development work, including the Partnership for Market Readiness (supporting countries preparing carbon pricing programmes), the initiative on the next generation of Networked Carbon Markets, and the Pilot Auction Facility. He is currently affiliated with the Arsht-Rockefeller Resilience Center at the Atlantic Council in Washington, DC. 

    Karen Degouve, Natixis. Ms Degouve is Head of Sustainable Business Development at Natixis, a major French financial institution active across 38 countries. She is a former board member of IETA and led the growth of Natixis’ climate finance business from the outset of the carbon market in 2005. She managed the pioneering European Carbon Fund at Natixis, which was one of the first private-sector led investment initiatives focused on delivering emissions reductions under the Kyoto Protocol. Karen currently coordinates sustainability strategies across the full range of Natixis’ business lines. 

    Dan Dudek, Environmental Defense Fund. Dan Dudek is EDF’s Vice President for Asia. For most of the past 20 years, he has worked to build EDF’s programme in China that explores how market-based approaches can advance its emissions objectives. Dan is widely credited with developing the cap-and-trade model that the Bush Administration adopted in the early 1990’s to control sulfur dioxide in the United States. That programme succeeded in reducing emissions below target levels and at a fraction of the predicted costs. More recently, he was a member of California’s advisory committee on the cap-and-trade program for greenhouse gases, which is now in operation and delivering climate benefits.

    Each year IETA honours three individuals as Honorary Fellows in recognition of their outstanding contributions to IETA’s mission of advancing market-based solutions to climate change.

    “Over the years, these three leaders were part of a broad business movement that delivered climate solutions through the innovation of markets,” said Dirk Forrister, IETA President and CEO. “We’re proud to recognise their contributions as inspiration for those working to develop the next generation of climate innovations.”

    A full list of IETA Fellows can be seen on our website here.

  • 15 Dec 2019 12:12 PM | Anonymous member (Administrator)

    MADRID, 15 December - Today in Madrid, nations failed to agree a set of rules governing international emissions markets after 2020. 

    “This is a huge disappointment,” said Dirk Forrister, CEO of IETA. “The fact is that countries’ ability to deliver stronger targets in line with net zero goals will depend on having access to international market cooperation.”

    After more than two weeks of talks to flesh out market rules under Article 6 of the Paris Agreement, Parties (countries) could not reach consensus on how to treat emissions reductions that were created under the Kyoto Protocol, the predecessor to the Paris treaty, nor could they agree on accounting rules to track the flow of emissions reductions between Parties in future markets.

    Studies show that robust international markets can save $320 billion per year by 2030 compared with a scenario in which nations work independently,” Forrister added. “These savings could double the amount of reductions at the same cost.”

    “It will be more difficult for Countries to commit to stronger targets without having confidence that the economic fundamentals are secure – and that market cooperation will enable achievement.”

    The collapse of the Article 6 talks in Madrid means that the task of piloting the new markets that were set out in the Paris Agreement falls to individual nations. 

    “The failure in Madrid won’t stop countries from cooperating on building the high integrity markets of the future,” Forrister said. “Since the UN climate process has stalled, the opportunity will move to bilateral and regional markets, where pilot systems are already in formation.”

    “These bilateral and regional markets can help inform the process for Glasgow next year, and we urge the incoming UK COP Presidency to make Article 6 its top priority.”


  • 12 Dec 2019 9:53 AM | Anonymous member (Administrator)

    BRUSSELS, 12 December – The European Commission yesterday published a proposal for a European Green Deal, setting the EU on the course to reach the climate neutrality target by 2050. Such a target brings the EU into line with the goals of the Paris Agreement.

    Several initiatives will be unveiled in the course of the next two years to deliver the European Green Deal, and these will have implications for the EU’s carbon market. 

    IETA calls on the EU to consult closely with business and industry when considering their likely impact on the operation of the EU ETS.

    “We applaud the EU’s desire to bring its climate ambition into line with the goals of the Paris Agreement, but it will need to embrace international markets and natural climate solutions to deliver in a way that protects competitiveness ,” said Dirk Forrister, CEO of IETA.

    An increase in the EU’s 2030 climate target will require the reopening of the rules governing the EU ETS. IETA urges that any review of the EU ETS Phase 4 regulations should be done in a way that provides market participants with maximum transparency on the likely impact.

    Proposals for changes to the EU ETS that will be presented in 2021 will include the extension of the EU’s carbon market to new sectors, an overhaul of rules protecting energy intensive industries against the risk of carbon leakage, as well as a review of renewable and energy efficiency laws that have an impact on the functioning of the EU ETS.

    “IETA believes that the EU’s carbon market should play the key role to deliver on the EU's objective to reach climate neutrality by 2050 in an economically efficient manner,” Forrister said.

    “We urge the Commission to carry out its rule making in a transparent manner, so as to offer certainty and clarity to the market.” 

    The European Commission today published a proposal for a European Green Deal, setting the EU on the course to reach the climate neutrality target by 2050. Such a target brings the EU into line with the goals of the Paris Agreement.

    Several initiatives will be unveiled in the course of the next two years to deliver the European Green Deal, and these will have implications for the EU’s carbon market. 

    IETA calls on the EU to consult closely with business and industry when considering their likely impact on the operation of the EU ETS.

    “We applaud the EU’s desire to bring its climate ambition into line with the goals of the Paris Agreement, but it will need to embrace international markets and natural climate solutions to deliver in a way that protects competitiveness ,” said Dirk Forrister, CEO of IETA.

    An increase in the EU’s 2030 climate target will require the reopening of the rules governing the EU ETS. IETA urges that any review of the EU ETS Phase 4 regulations should be done in a way that provides market participants with maximum transparency on the likely impact.

    Proposals for changes to the EU ETS that will be presented in 2021 will include the extension of the EU’s carbon market to new sectors, an overhaul of rules protecting energy intensive industries against the risk of carbon leakage, as well as a review of renewable and energy efficiency laws that have an impact on the functioning of the EU ETS.

    “IETA believes that the EU’s carbon market should play the key role to deliver on the EU's objective to reach climate neutrality by 2050 in an economically efficient manner,” Forrister said.

    “We urge the Commission to carry out its rule making in a transparent manner, so as to offer certainty and clarity to the market.” 


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