The Climate Group convenes WBSCC carbon markets work stream

Date

25 May 2009

Day 2 of the World Business Summit on Climate Change - a gathering of top business leaders, policy makers, negotiators, experts and scientists - was dominated by the working group sessions focusing on the means to achieve a rapid transition to a low carbon economy.

The carbon markets work stream, developed by The Climate Group with the International Emissions Trading Association (IETA) and the Carbon Markets and Investors Association (CMIA) drew high level participation. Expert speakers included policy-makers such as Jos Delbeke, Deputy Director-General for the Environment at the European Commission; financiers such as Caio Koch-Weser, Vice Chairman, Deutsche Bank and; CEOs such as Jim Rogers of Duke Energy and Zhengrong Shi of Suntech Power.

The discussions began with the good, the bad and the ugly of current carbon market regimes: carbon markets have resulted in quantifiable emissions reductions in the EU, and a price on carbon has induced a change in corporate boardroom decision-making processes. Carbon markets have been successful for the deployment of existing technology but less effective at stimulating innovation and capacity constraints in the Clean Development Mechanism have hindered projects coming on line.

Looking forward, robust emissions data is essential to set stringent caps and create scarcity of allowances in the market. Businesses require more predictability and transparency of future carbon market arrangements, with clarity on auctioning, offsetting and institutional arrangements. This will allow them to make longer term decisions on investment. An aim for the next UN Climate Change Conference in December will be to set a framework to enable regional emissions trading schemes to link and create a global carbon market.

The discussions from the work streams helped inform the Copenhagen Call - a statement by the global business community on the elements business believe are required for an effective new global climate treaty. The recommendations from the working groups will also be fed in to the next round of UN climate change talks starting on 1 June in Bonn.

The speakers for the carbon markets working group were:

Abyd Karmali, Global Head of Carbon Markets, Bank of America Merrill Lynch

Jos Delbeke, Deputy Director-General for the Environment, European Commission

Koen Coppenholle, Head of European Affairs, ArcelorMittal

Mahesh Babu, CEO, IL&FS Ecosmart

Tracy Wolstencroft, Global Head, Centre for Environmental Markets, Goldman Sachs

Henry Derwent, President and CEO, International Emissions Trading Association

Ian Marchant, CEO, Scottish and Southern Energy

James E. Rogers, Chairman, President and CEO, Duke Energy

Zhengrong Shi, CEO, Suntech Power

Caio Koch-Weser, Vice Chairman, Deutsche Bank

Samuel A. DiPiazza, CEO PricewaterhouseCoopers chaired the sessions and Mark Kenber, Policy Director, The Climate Group, was rapporteur.

The speakers for the carbon markets working group were: Abyd Karmali, Global Head of Carbon Markets, Bank of America Merrill Lynch Jos Delbeke, Deputy Director-General for the Environment, European Commission Koen Coppenholle, Head of European Affairs, ArcelorMittal Mahesh Babu, CEO, IL&FS Ecosmart Tracy Wolstencroft, Global Head, Centre for Environmental Markets, Goldman Sachs Henry Derwent, President and CEO, International Emissions Trading Association Ian Marchant, CEO, Scottish and Southern Energy James E. Rogers, Chairman, President and CEO, Duke Energy Zhengrong Shi, CEO, Suntech Power Caio Koch-Weser, Vice Chairman, Deutsche Bank Samuel A. DiPiazza, CEO PricewaterhouseCoopers chaired the sessions and Mark Kenber, Policy Director, The Climate Group, was rapporteur.