A proposed European Union ban on the use of United Nations carbon credits in its emissions market may signal the end of the international offset market, according to energy consultant Nomisma Energia srl.
The European Union is poised to take its first formal steps to expand the world’s most ambitious limits on fossil fuel pollution. That may widen a rift in how it balances green policies with the need for cheaper power.
United Nations climate envoys must start coordinating data on how carbon markets cut greenhouse gases, or risk undermining investment in clean technologies, according to the Centre for European Policy Studies.
This year’s climate talks in Poland will attempt to establish a framework for rules governing industry-based carbon markets and non-market programs after 2020, according to the Centre for European Policy Studies.
United Nations envoys will probably restrict trading of surplus Kyoto Protocol allowances by countries and crimp an oversupply in carbon markets faster than expected, said Andrei Marcu, head of the Centre for European Policy Studies’ Carbon Market Forum.
The proposed linking of the European Union and Australian greenhouse-gas-reduction programs will demonstrate to policy makers across the world that carbon markets can help address climate change, said Andrei Marcu.
Russia and the European Union are among parties that haven’t agreed on a developing-nation plan to limit trading of a 13 billion-metric-ton surplus of Assigned Amount Units under the Kyoto Protocol, according to CDM Watch.
Europe will struggle to convince the rest of the world that carbon trading is the best way to tackle climate change if a plan to revive the price of the region’s permits fails, said the Centre for European Policy Studies.
A suggestion by a high-level panel that the United Nations Green Climate Fund buy certain emission credits from the Clean Development Mechanism could help alleviate a supply glut, according to a research group.