Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement

This working paper commissioned by the World Bank Carbon Markets and Innovation Practice (GCCMI) critically examines experience with carbon markets under the Kyoto protocol. The de facto end of the Kyoto Protocol and heralding of the Paris Agreemen...

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Main Author:	World Bank
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	CARBON POLICY CARBON TRADING CARBON MARKETS KYOTO PARIS AGREEMENT CLIMATE CHANGE GREENHOUSE GAS EMISSIONS CLIMATE CHANGE MITIGATION
Online Access:	http://documents.worldbank.org/curated/en/650081545377054720/Carbon-Markets-Under-the-Kyoto-Protocol-Lessons-Learned-for-Building-an-International-Carbon-Market-Under-the-Paris-Agreement http://hdl.handle.net/10986/31210

id	okr-10986-31210
recordtype	oai_dc
spelling	okr-10986-312102021-05-25T09:21:08Z Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement World Bank CARBON POLICY CARBON TRADING CARBON MARKETS KYOTO PARIS AGREEMENT CLIMATE CHANGE GREENHOUSE GAS EMISSIONS CLIMATE CHANGE MITIGATION This working paper commissioned by the World Bank Carbon Markets and Innovation Practice (GCCMI) critically examines experience with carbon markets under the Kyoto protocol. The de facto end of the Kyoto Protocol and heralding of the Paris Agreement era has created the space for critical evaluation of trading carbon assets. The Kyoto Protocol and Paris Agreement diverge markedly in scope, centralization, and logic. As a result, the Article 6 carbon market mechanisms that emerge under Paris are likely to be very different to those that emerged under Kyoto. Nonetheless, experience with carbon markets under the Kyoto Protocol remains informative. This paper argues that there is still an economic and political rationale for trading carbon assets across borders. Trade in carbon assets can help reduce the costs of mitigation and facilitate emissions abatement at least-cost locations. When designed well, carbon market mechanisms can also facilitate learning, mobilize the private sector, and encourage transparency of mitigation efforts. Crucially, carbon markets could help support the operating logic of the Paris Agreement by binding signatories together and enhancing collective ambition. However, done badly, linking emissions systems could entail some risks to environmental integrity. In addition, given continued delays to the clarification of Article 6 and the need for strong action now, countries should not wait to implement effective domestic mitigation instruments such as carbon. 2019-02-04T18:29:25Z 2019-02-04T18:29:25Z 2018-12-19 Working Paper http://documents.worldbank.org/curated/en/650081545377054720/Carbon-Markets-Under-the-Kyoto-Protocol-Lessons-Learned-for-Building-an-International-Carbon-Market-Under-the-Paris-Agreement http://hdl.handle.net/10986/31210 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CARBON POLICY CARBON TRADING CARBON MARKETS KYOTO PARIS AGREEMENT CLIMATE CHANGE GREENHOUSE GAS EMISSIONS CLIMATE CHANGE MITIGATION
spellingShingle	CARBON POLICY CARBON TRADING CARBON MARKETS KYOTO PARIS AGREEMENT CLIMATE CHANGE GREENHOUSE GAS EMISSIONS CLIMATE CHANGE MITIGATION World Bank Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
description	This working paper commissioned by the World Bank Carbon Markets and Innovation Practice (GCCMI) critically examines experience with carbon markets under the Kyoto protocol. The de facto end of the Kyoto Protocol and heralding of the Paris Agreement era has created the space for critical evaluation of trading carbon assets. The Kyoto Protocol and Paris Agreement diverge markedly in scope, centralization, and logic. As a result, the Article 6 carbon market mechanisms that emerge under Paris are likely to be very different to those that emerged under Kyoto. Nonetheless, experience with carbon markets under the Kyoto Protocol remains informative. This paper argues that there is still an economic and political rationale for trading carbon assets across borders. Trade in carbon assets can help reduce the costs of mitigation and facilitate emissions abatement at least-cost locations. When designed well, carbon market mechanisms can also facilitate learning, mobilize the private sector, and encourage transparency of mitigation efforts. Crucially, carbon markets could help support the operating logic of the Paris Agreement by binding signatories together and enhancing collective ambition. However, done badly, linking emissions systems could entail some risks to environmental integrity. In addition, given continued delays to the clarification of Article 6 and the need for strong action now, countries should not wait to implement effective domestic mitigation instruments such as carbon.
format	Working Paper
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
title_short	Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
title_full	Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
title_fullStr	Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
title_full_unstemmed	Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement
title_sort	carbon markets under the kyoto protocol : lessons learned for building an international carbon market under the paris agreement
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/650081545377054720/Carbon-Markets-Under-the-Kyoto-Protocol-Lessons-Learned-for-Building-an-International-Carbon-Market-Under-the-Paris-Agreement http://hdl.handle.net/10986/31210
_version_	1764473738856759296

Carbon Markets Under the Kyoto Protocol : Lessons Learned for Building an International Carbon Market Under the Paris Agreement

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