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Toward a club of carbon markets

Author

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  • N. Keohane

    (Environmental Defense Fund)

  • A. Petsonk

    (Environmental Defense Fund)

  • A. Hanafi

    (Environmental Defense Fund)

Abstract

This paper proposes the creation of a club of carbon markets (CCM), to promote deep reductions in greenhouse gas emissions by supporting the development, harmonization, and increased ambition of domestic carbon markets. To achieve its aims, the club would establish common or reciprocal standards for environmental market infrastructure, transparency and environmental integrity; offer mutual recognition of members’ emissions units; allow participating jurisdictions to share experience and gain assistance in building institutional capacity; and promote domestic and cross-border investment in low-carbon development. Using a suite of incentives, including some from the trade arena, a club of carbon markets could serve as a powerful attractive nucleus for broadening the participation of jurisdictions in climate mitigation, much as the General Agreement on Tariffs and Trade (GATT) served as the nucleus for broadening trade in products and services. A carbon markets club could be launched under UNFCCC auspices, but a more promising avenue might be to pursue the creation of the CCM as a complement to but outside the UN talks.

Suggested Citation

  • N. Keohane & A. Petsonk & A. Hanafi, 2017. "Toward a club of carbon markets," Climatic Change, Springer, vol. 144(1), pages 81-95, September.
    • Handle: RePEc:spr:climat:v:144:y:2017:i:1:d:10.1007_s10584-015-1506-z
    DOI: 10.1007/s10584-015-1506-z
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    Cited by:

    1. Chen, Zhongfei & Zhang, Xiao & Chen, Fanglin, 2021. "Do carbon emission trading schemes stimulate green innovation in enterprises? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    2. Hu, Jiangfeng & Pan, Xinxin & Huang, Qinghua, 2020. "Quantity or quality? The impacts of environmental regulation on firms’ innovation–Quasi-natural experiment based on China's carbon emissions trading pilot," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    3. Simon Quemin & Christian Perthuis, 2019. "Transitional Restricted Linkage Between Emissions Trading Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 1-32, September.
    4. Cavalcanti, Eduardo J.C. & Lima, Matheus S.R. & de Souza, Gabriel F., 2020. "Comparison of carbon capture system and concentrated solar power in natural gas combined cycle: Exergetic and exergoenvironmental analyses," Renewable Energy, Elsevier, vol. 156(C), pages 1336-1347.
    5. Weng, Zhixiong & Liu, Tingting & Wu, Yufeng & Cheng, Cuiyun, 2022. "Air quality improvement effect and future contributions of carbon trading pilot programs in China," Energy Policy, Elsevier, vol. 170(C).

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