Even in the absence of an international framework for reducing greenhouse gas emissions, several countries, states, and provinces are developing and implementing climate policies. A growing number of these policies include market-based programs, some of which aim to link to each other through regional and global carbon markets. Countries like the United States can learn a lot from the economic and political experiences of these climate policy “first movers.”
Earlier this week, I sat on a panel at Carbon Forum North America entitled “International Trade and Carbon: It’s a Competitive World.” At this session, we considered current issues and concerns involved with implementing climate policies, especially how pricing carbon pollution can impact economic competitiveness.
4 Key Issues that Came Up During Our Discussion:
- Carbon markets are on the rise. According to Jeff Hopkins, a fellow panelist and principal adviser for international energy and climate policy at Rio Tinto, by 2014, roughly 25 percent of global carbon dioxide emissions will be covered under market-based emissions-reduction programs. Hopkins also estimates that by 2014, 75 percent of emissions from Rio Tinto’s operations will occur in jurisdictions that have enacted market-based emissions-reduction policies.