International Carbon Action Partnership (ICAP)

🌍✨ ICAP was thrilled to attend the PMI Global Knowledge Forum 2024 in Cartagena, Colombia! This year's forum, focused on "Carbon Pricing Mechanisms and International Carbon Markets," provided an invaluable platform for knowledge sharing and collaboration. The event kicked off with inspiring opening remarks by Jennifer Sara and Hania Dawood from The World Bank and Judy Meltzer from Canada. Throughout the forum, we delved into the latest trends, opportunities, and challenges in carbon pricing and #carbonmarkets. 🌍. ICAP's Head of Secretariat Stefano De Clara had the privilege of chairing one standout session exploring domestic crediting mechanisms, with insightful contributions from representatives of Chile, China, and Panama, who shared their experiences and strategies. We also gained valuable updates on international carbon markets, including the latest developments in Article 6 negotiations and voluntary carbon markets. The discussions on ensuring the integrity and transparency of carbon credits were particularly enlightening, showcasing effective implementations and their crucial role in market efficiency. An interactive Knowledge Fair provided a deep dive into the building blocks and roadmap to access international carbon markets, fostering engaging discussions and valuable exchanges among participants. We extend our heartfelt thanks to The World Bank for organizing such a comprehensive and impactful event. Congratulations on the great discussions and a very successful meeting! 🙌

🌿📉 𝐍𝐞𝐰 𝐙𝐞𝐚𝐥𝐚𝐧𝐝'𝐬 𝐏𝐢𝐨𝐧𝐞𝐞𝐫𝐢𝐧𝐠 𝐒𝐭𝐞𝐩𝐬 𝐢𝐧 𝐄𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐓𝐫𝐚𝐝𝐢𝐧𝐠: 𝐔𝐩𝐝𝐚𝐭𝐞𝐬 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐬 As we continue our global tour of emissions trading systems updates from the ICAP Status Report 2024, today we highlight New Zealand's adjustments to its Emissions Trading Scheme (NZ ETS) aligned with ambitious climate goals. 🌏 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐍𝐙 𝐄𝐓𝐒: · 𝐍𝐞𝐭-𝐙𝐞𝐫𝐨 𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭: The NZ ETS cap trajectory has been revised to align with New Zealand’s net-zero targets, reflecting stringent climate commitments. · 𝐀𝐮𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐏𝐫𝐢𝐜𝐞 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬: Adjustments in unit supply and auction reserve prices for 2024 to 2028 were instituted following a court decision, ensuring compliance with net-zero objectives. 🛤️ 𝐄𝐓𝐒 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: New Zealand’s ETS, operational since 2008, encompasses a broad range of sectors including forestry, energy, and industry, with a unique mechanism for the forestry sector to earn units for carbon removal. The system's backbone is the Climate Change Response Act 2002, which integrates all key climate legislations. 🌱 𝐘𝐞𝐚𝐫 𝐢𝐧 𝐑𝐞𝐯𝐢𝐞𝐰: · 𝐀𝐮𝐜𝐭𝐢𝐨𝐧 𝐒𝐞𝐭𝐭𝐢𝐧𝐠𝐬 𝐑𝐞𝐯𝐢𝐬𝐞𝐝: Updated auction settings introduced a higher price floor and a revised Cost Containment Reserve trigger price to reinforce the system's integrity and effectiveness. · 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬: Although auctions did not clear, meaning no new allowances were sold, the revised settings are set to shape future market dynamics positively. 🔄 𝐋𝐞𝐠𝐢𝐬𝐥𝐚𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭𝐚𝐥 𝐒𝐡𝐢𝐟𝐭𝐬: · 𝐏𝐨𝐥𝐢𝐜𝐲 𝐒𝐡𝐢𝐟𝐭𝐬: A new government elected in October 2023 has proposed significant shifts, including the development of a specific pricing mechanism for agricultural emissions by 2030 and repealing current legislation that would have included agriculture in the NZ ETS from 2026. 🔗 Explore the detailed insights and the evolving landscape of New Zealand’s ETS in our full report and access the specific factsheet on our ETS Map: · 𝐅𝐮𝐥𝐥 𝐫𝐞𝐩𝐨𝐫𝐭: https://lnkd.in/d7JmfSeb · 𝐍𝐞𝐰 𝐙𝐞𝐚𝐥𝐚𝐧𝐝’𝐬 𝐄𝐓𝐒 𝐟𝐚𝐜𝐭𝐬𝐡𝐞𝐞𝐭: https://lnkd.in/e3N4atam Stay tuned as we delve deeper into the dynamic world of emissions trading systems, showcasing their critical role in global climate mitigation strategies. #ClimateAction #EmissionsTrading #ICAP2024 #NewZealand #Sustainability

🌍🇦🇹 𝐀𝐮𝐬𝐭𝐫𝐢𝐚'𝐬 𝐄𝐓𝐒 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧: 𝐅𝐫𝐨𝐦 𝐍𝐄𝐇𝐆 𝐭𝐨 𝐄𝐔 𝐄𝐓𝐒 𝟐 As Austria aligns with the European Union’s climate strategy, the Austrian Parliament has made significant strides in planning for the transition from its national Emissions Trading System (NEHG) to the forthcoming EU ETS 2, which is set to expand the coverage of emissions trading across the continent. 🇪🇺 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀: · 𝗘𝗻𝗱 𝗼𝗳 𝗡𝗘𝗛𝗚: The NEHG will cease operations by 31 December 2026 to prepare for the EU ETS 2, which begins on 1 January 2027. · 𝗘𝗨 𝗘𝗧𝗦 𝟮 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻: The new system, operational from 2027, will cover combustion fuels used in buildings, road transport, and small industries—largely mirroring the current scope of the NEHG. 📊 𝗦𝘆𝘀𝘁𝗲𝗺 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄: · 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀: Transitional regulations have been set to streamline reporting and registration starting in 2025, ensuring a smooth shift to EU ETS 2. · 𝗔𝘃𝗼𝗶𝗱𝗶𝗻𝗴 𝗴𝗮𝗽𝘀 𝗶𝗻 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲: Compliance obligations under NEHG will be extended by 12 months if EU ETS 2's launch is delayed to 2028. 🔄 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: · Austria’s approach provides an example for other EU countries, most notably Germany, which are planning similar transitions from national systems to EU ETS 2. 🔗 𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗔𝘂𝘀𝘁𝗿𝗶𝗮'𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗽𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗘𝗨 𝗘𝗧𝗦 𝟮 𝗮𝗻𝗱 𝗶𝘁𝘀 𝗶𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗰𝗮𝗿𝗯𝗼𝗻 𝗺𝗮𝗿𝗸𝗲𝘁 𝗱𝘆𝗻𝗮𝗺𝗶𝗰𝘀: https://lnkd.in/dEENbWx5 · 𝗔𝘂𝘀𝘁𝗿𝗶𝗮’𝘀 𝗘𝗧𝗦 𝗳𝗮𝗰𝘁𝘀𝗵𝗲𝗲𝘁: https://lnkd.in/dHYbyse4 Stay connected as we continue to monitor and report on the evolving landscape of emissions trading systems globally. #ClimateAction #EmissionsTrading #ICAP2024 #Austria #EUEmissionsTrading

Last week, ICAP had the privilege of joining IETA at this year’s Latin America Climate Summit. The summit featured an impressive lineup of plenaries and deep dives, covering crucial topics such as carbon pricing mechanisms, climate finance, and Article 6. Our Head of Secretariat, Stefano De Clara represented ICAP at #LACS2024 by participating in two key events focused on carbon pricing and carbon markets in the region. In the first session, experts and stakeholders discussed the vital role of subnational governments in deploying carbon markets. The session featured insights from Katie Sullivan - IETA, Eduardo Piquero - MEXICO2 Plataforma Mexicana de Carbono, Beatriz Narita - Consortium of Amazon States, Philippe Grégoire - Government of Quebec, Canada and Sebastián Navarro - CC35. The latter session, titled ‘Carbon Border Adjustments, Competitiveness, and Carbon Pricing: Trends & Industry Reactions in Latin America and the Caribbean,’ explored the impacts and implications of carbon border adjustment measures in the LAC region. With insights from Dirk Weinreich - Federal Ministry for Economic Affairs and Climate Action (BMWK), Germany, Amanda Luna Mera - The Carbon Trust, Alfredo Nicastro - StoneX Group Inc., Osiris Ocando - Bayer and Ricardo Torres - Estado de Querétaro, Mexico Additionally, Santiago Ramírez Niembro, carbon markets expert at ICAP, moderated a session on the evolution and recent advancements toward establishing an ETS in Colombia. This discussion featured the valuable contributions of  Ruben Goldsztayn ANDI - Asociación Nacional de Empresarios de Colombia & Andres Camilo Alvarez Espinosa – from DNP. #LACS2024 #climataction #collaboration #carbonmarkets

💰 𝓤𝓼𝓮 𝓸𝓯 𝓔𝓣𝓢 𝓡𝓮𝓿𝓮𝓷𝓾𝓮💰   In our ongoing exploration of the ICAP Status Report 2024 infographics, today we delve into how revenues from emissions trading systems (ETS) are strategically utilized to achieve societal objectives. This segment highlights the role of ETS not only in reducing emissions but also in fueling community development and environmental projects. 🔍 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐈𝐧𝐟𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜:  ·Revenue Sources💰: ETSs generate funds through the auctioning of allowances, sale of credits, and direct payments into funds. This infographic outlines these mechanisms, providing a clear view of how ETS revenues are raised.  ·Funding Allocation🔄: Jurisdictions adopt varied strategies in managing these funds. Some integrate them into their general budgets, while others earmark them for specific initiatives aimed at bolstering climate action and supporting economic transitions. 🎯𝐓𝐚𝐫𝐠𝐞𝐭𝐞𝐝 𝐔𝐬𝐞𝐬 𝐨𝐟 𝐄𝐓𝐒 𝐅𝐮𝐧𝐝𝐬:  ·Climate Projects🌍: A significant portion of ETS revenues is invested in climate mitigation efforts, including renewable energy projects and energy efficiency improvements, directly contributing to carbon reduction goals.  ·Supporting Communities🏠: Funds also flow into programs designed to assist individuals, households, and businesses, helping them navigate the economic shifts brought about by climate policies. Additional allocations support public services such as education and healthcare, enhancing overall societal resilience.  ·Impact by Jurisdiction🌐: The infographic underscores that the utilization of these revenues reflects local priorities, with the scope of funding influenced by the size of the jurisdiction, ETS coverage, compliance mechanisms, and carbon pricing dynamics.   This detailed examination of ETS revenue usage illuminates how effectively designed systems can extend their impact beyond environmental benefits to broader economic and social improvements.   🔗 Dive deeper into the strategic deployment of ETS revenues across various jurisdictions in our full report: https://lnkd.in/d7JmfSeb Stay tuned for our next post, where we will analyze the range of carbon prices in 2023 across different ETS, providing insights into how pricing influences emissions coverage.  #EmissionsTrading #ClimateFinance #Sustainability #ICAP2024 #SocialImpact 

🍁🏭 𝐂𝐚𝐧𝐚𝐝𝐚 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐬 𝐢𝐭𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐎𝐁𝐏𝐒 𝐚𝐧𝐝 𝐂𝐚𝐫𝐛𝐨𝐧 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐔𝐩𝐝𝐚𝐭𝐞 🌎 As we continue our journey through the key updates from the ICAP Status Report 2024, today's focus is on Canada's robust approach to emissions management. With a comprehensive federal carbon pollution pricing system, Canada ensures that industries across all provinces and territories are incentivized to reduce greenhouse gas emissions. 📊 𝐊𝐞𝐲 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐂𝐚𝐧𝐚𝐝𝐚’𝐬 𝐂𝐚𝐫𝐛𝐨𝐧 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞: · 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐎𝐁𝐏𝐒: Operational since 2019 under the Greenhouse Gas Pollution Pricing Act, setting a performance-based standard for industrial emitters. · 𝐍𝐞𝐭-𝐙𝐞𝐫𝐨 𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭: In 2023, Canada announced plans to develop a federal cap-and-trade system for the oil and gas sector, aligning with its commitment to achieving net-zero emissions by 2050. 🌱 𝐒𝐲𝐬𝐭𝐞𝐦 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: · 𝐁𝐚𝐜𝐤𝐬𝐭𝐨𝐩 𝐒𝐲𝐬𝐭𝐞𝐦: Canada's "backstop" carbon pricing system applies to regions that do not meet the federal carbon pricing benchmark, ensuring a minimum price threshold across the country. · 𝐎𝐁𝐏𝐒 𝐃𝐞𝐭𝐚𝐢𝐥𝐬: The federal OBPS, part of this backstop system, is tailored to prevent carbon leakage and maintain competitiveness in emissions-intensive and trade-exposed sectors. 🔄 𝐘𝐞𝐚𝐫 𝐢𝐧 𝐑𝐞𝐯𝐢𝐞𝐰: · 𝐒𝐭𝐫𝐢𝐧𝐠𝐞𝐧𝐜𝐲 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝: Significant amendments were made to the federal OBPS in 2023 to increase the stringency of output-based standards, ensuring that facilities’ emissions limits align more closely with national emissions reduction goals. · 𝐂𝐚𝐩-𝐚𝐧𝐝-𝐓𝐫𝐚𝐝𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤: A regulatory framework for the new cap-and-trade system was published in December 2023, with draft regulations expected in 2024 and finalization by 2025. 🔗 Dive deeper into Canada’s evolving emissions trading framework and explore the details in our full report and access the specific factsheet for Canada on our ETS Map: · 𝐅𝐮𝐥𝐥 𝐫𝐞𝐩𝐨𝐫𝐭: https://lnkd.in/d7JmfSeb · 𝐂𝐚𝐧𝐚𝐝𝐚’𝐬 𝐄𝐓𝐒 𝐟𝐚𝐜𝐭𝐬𝐡𝐞𝐞𝐭: https://lnkd.in/en67FDbT Stay tuned as we delve further into the transformations within global emissions trading systems, highlighting their critical role in driving towards global climate targets. #ClimateAction #EmissionsTrading #ICAP2024 #CanadaClimatePolicy #Sustainability

🌍 𝐈𝐂𝐀𝐏 𝐈𝐧𝐟𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐬 - 𝚃𝚢𝚙𝚘𝚕𝚘𝚐𝚢 𝚘𝚏 𝙲𝚊𝚛𝚋𝚘𝚗 𝙿𝚛𝚒𝚌𝚒𝚗𝚐 Today, we delve into the different types of direct #CarbonPricing instruments. There are two primary categories: carbon taxes and carbon markets. Each is designed to internalize the external costs of carbon emissions, motivating economic agents to reduce their greenhouse gas emissions. 🔎 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐈𝐧𝐟𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜: ·      🌿 𝐕𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐯𝐬. 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: Voluntary markets enable entities to buy carbon offsets on an optional basis, whereas compliance markets are governed by legal mandates that compel entities to meet specific emissions caps. ·      ✈️ 𝐎𝐟𝐟𝐬𝐞𝐭𝐭𝐢𝐧𝐠 𝐒𝐜𝐡𝐞𝐦𝐞𝐬 𝐚𝐧𝐝 𝐄𝐓𝐒𝐬: Within the compliance landscape, this section shows various schemes like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and different emissions trading systems (ETSs). ·      🔢 𝐂𝐚𝐩 𝐓𝐲𝐩𝐞𝐬 𝐢𝐧 𝐄𝐓𝐒𝐬: Emissions trading systems may implement an absolute cap, setting a strict limit on emissions, or an intensity-based cap, which adjusts limits based on production levels or other relevant metrics. ·      🔄 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐜𝐬 𝐨𝐟 𝐓𝐫𝐚𝐝𝐞: Understanding the dynamics of what is being traded, who is involved in supplying and buying, helps stakeholders grasp how these markets operate and their impact on emissions reduction. 🔗 Dive deeper into the diverse forms of carbon pricing by exploring our full report: https://lnkd.in/d7JmfSeb 👀 Stay tuned for our next post in this series, where we will delve into how revenues from ETSs are used and their broader societal impacts. #CarbonPricing #ClimateChange #EmissionsTrading #ICAP2024 #Environment

🎉 𝐈𝐂𝐀𝐏 𝐰𝐞𝐥𝐜𝐨𝐦𝐞𝐬 𝐒𝐜𝐨𝐭𝐥𝐚𝐧𝐝 𝐚𝐬 𝐢𝐭𝐬 𝐧𝐞𝐰𝐞𝐬𝐭 𝐦𝐞𝐦𝐛𝐞𝐫! 🎉 We're thrilled to announce that Scotland has joined ICAP as our 34th member! 🌿 The Scottish Government, represented by Catriona Laing, Deputy Director in the Domestic Climate Change Division, signed the ICAP political declaration, underscoring Scotland's commitment to emissions trading. Scotland is striving for national climate neutrality by 2045, with #EmissionsTrading being a key component of its strategy. Since 2021, Scotland has been part of the #UKETS, a system established by the Scottish, UK, and Welsh Governments, and the Northern Ireland Department of Agriculture, Environment and Rural Affairs, post-Brexit. 🌍 As a part of the #ICAP community, Scotland will share its expertise and contribute to the global development, implementation, and enhancement of #ETSs. Welcome aboard, Scotland! 🌟 #ClimateAction #EmissionsTrading #ICAP #Scotland 👉 More info here: https://lnkd.in/dqP2VPNg

🌍 𝐈𝐂𝐀𝐏 𝐍𝐄𝐖𝐒 - Türkiye envisions key role for ETS in latest Climate Strategy 📅 On 23 May 2024, the Turkish government released the English version of its "Climate Change Mitigation Strategy and Action Plan" (CCMSAP), outlining strategies to achieve climate neutrality by 2053. The establishment of an ETS figures prominently in the plan, with the aim to align the system with the #EUETS and #CBAM. 🚀 Next steps include: • 𝐃𝐫𝐚𝐟𝐭 𝐜𝐥𝐢𝐦𝐚𝐭𝐞 𝐥𝐚𝐰 𝐰𝐢𝐭𝐡 𝐄𝐓𝐒 𝐥𝐞𝐠𝐚𝐥 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤:  To be presented to Parliament in 2024 • 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐩𝐥𝐚𝐧: Detailed by late 2024 • 𝐏𝐢𝐥𝐨𝐭 𝐩𝐡𝐚𝐬𝐞: Trading starts in early 2025 Read more: https://lnkd.in/df7UyyFa

🇨🇳🌍 𝐄𝐱𝐩𝐥𝐨𝐫𝐢𝐧𝐠 𝐂𝐡𝐢𝐧𝐚'𝐬 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐬 𝐢𝐧 𝐄𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐒𝐲𝐬𝐭𝐞𝐦𝐬 🌱 🔍 Today's feature in our ICAP Status Report 2024 series highlights China's significant strides in advancing its national Emissions Trading System (ETS). As the world’s largest ETS by volume, China continues to evolve and expand its approach to carbon market regulation. 📈 𝐂𝐡𝐢𝐧𝐚’𝐬 𝐄𝐓𝐒 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞𝐬 𝐢𝐧 𝟐𝟎𝟐𝟑/𝟐𝟎𝟐𝟒: · 𝐒𝐞𝐜𝐨𝐧𝐝 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐂𝐲𝐜𝐥𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐝: The completion of the second compliance cycle for 2021 and 2022, with allowance prices rising to USD 11 per tCO2e. · 𝐍𝐞𝐰 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐎𝐟𝐟𝐬𝐞𝐭 𝐒𝐜𝐡𝐞𝐦𝐞 𝐋𝐚𝐮𝐧𝐜𝐡: Launch of a new domestic offset scheme by the Ministry of Ecology at the end of 2023, fostering a market for emission reduction projects. · 𝐍𝐞𝐰 𝐄𝐓𝐒 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝: Publication of a new ETS regulation by the State Council in February 2024, introducing stringent penalties for non-compliance and market abuse. 🌏 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: · Since its inception in 2021, China's national ETS has regulated over 2,000 companies in the power sector, covering around 5 billion tCO2—more than 40% of the country's CO2 emissions. · The system uses an intensity-based allocation mechanism, with plans to expand coverage to additional sectors over time. 📊 𝐘𝐞𝐚𝐫 𝐢𝐧 𝐑𝐞𝐯𝐢𝐞𝐰: · The Ministry of Ecology and Environment (MEE) released crucial plans and guidelines for managing greenhouse gas emissions reporting and verification for the power and industrial sectors. · Notable developments include the publication of the “Work Plan on the Management of Power Enterprise GHG Emissions Reporting and Verification for 2023-2025” and similar guidelines for key industrial sectors. 🌱 𝐅𝐮𝐭𝐮𝐫𝐞 𝐃𝐢𝐫𝐞𝐜𝐭𝐢𝐨𝐧𝐬: · The newly launched Chinese Certified Emissions Reduction scheme (CCER) aims to integrate forestation, renewable energy projects, and other domestic offset initiatives, with comprehensive guidelines for trading and clearing published by the Beijing Green Exchange. · The revised national ETS regulation, enhancing enforcement and market integrity, underscores China’s commitment to robust climate action. 📖 Explore China's evolving ETS landscape and its implications for global carbon market dynamics in our full report and access the specific factsheet: · 𝙁𝙪𝙡𝙡 𝙍𝙚𝙥𝙤𝙧𝙩: https://lnkd.in/d7JmfSeb · 𝘾𝙝𝙞𝙣𝙖’𝙨 𝙀𝙏𝙎 𝙁𝙖𝙘𝙩𝙨𝙝𝙚𝙚𝙩 𝙤𝙣 𝙤𝙪𝙧 𝙀𝙏𝙎 𝙈𝙖𝙥: https://lnkd.in/dXVhbkAx 👀 Stay connected as we continue to delve into developments in emission trading systems globally, showcasing their role in achieving sustainable environmental goals. #ClimateAction #EmissionsTrading #ICAP2024 #ChinaETS #Sustainability