What’s the future of the carbon market?
In the midst of reports that the carbon market might be facing a potential slump, Carbon Expo, the Global Carbon Market Fair and Conference, is opening this week in Cologne. What are the prospects for the carbon market, and what role can international organizations play in supporting the introduction of clean technologies? Can and should the private sector go beyond the requirements posed by regulators? What development impact can be expected from the carbon credits market - and is it sufficient to meet the needs of emerging markets?
A new guest blogger has joined us for this issue: Warren Evans, Director of the Environment Department at the World Bank. During the next few days, he and our own Rachel Kyte will present here their views on the future of the carbon market, adaptation and mitigation measures, and the roles of the private and public sector in meeting the requirements of Kyoto and beyond.
We will keep track of the debate here:
- Rachel questions whether clean tech is going mainstream?
- Warren on the policy challenge of clean technologies
- Rachel on removing bad subsidies to fund adaptation
- Warren on the impact of climate change on the poor
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In 1997 the Bank said in internal memos that its involvement in carbon trading was a "conflict of interest".
The US Treasury also agreed, in part because the bank funds fossil fuels at a ratio of 18-20:1 over renewables.
What's the thinking on that position now?
Posted by: ProfDorsey | May 11, 2006 10:18:31 AM
Reader might be intersted in this June 8 event on energy investing in a carbon-constrained world:
http://events.tfn.com/energy/
Posted by: Thompson | May 11, 2006 7:10:05 PM
I expose my case, that is very common in LA, a independent professional (physicist) have been asked directly to work for a indigenous community, www.huayllap.org, improving his kitchens or ovens, how to negotiate the not emission of around 400 ton yearly, so they can finnance the effort by example of technical assistance for 100 families with the world bank, by these only concept.
Fono (0511-4489190)
Posted by: RamiroValdiviaH | May 15, 2006 1:04:46 PM
The EU carbon market takes more hits.
The European Commission admitted Monday that member states had given companies far too generous targets for greenhouse gas emissions last year, raising questions about the Continent's ability to meet its obligations under the Kyoto Protocol and triggering chaos in Europe's embryonic market in trading emissions credits. http://www.iht.com/articles/2006/05/15/business/emission.php
Both the UK and Germany want to change the current plan, but even their plans are conflicting. http://euronews.net/create_html.php?page=detail_eco&article=359078&lng=1
And The Guardian says that: "The global carbon market is in chaos" http://commentisfree.guardian.co.uk/michael_grubb/2006/05/emissions_impossible.html
Just a mess all around.
Posted by: Stephanie B. | May 15, 2006 6:58:16 PM
Its not entirely clear that markets will really work. I am running to catch a plane, but want to throw in some links to recent articles questioning the market approach for much of the world. My own view is that we need quickly to develop Plan B. Let markets work where there are assurances that what is being traded is real, and use other tools where those assurances cannot be met.
Here is the link to the Foreign Affairs article and two others:
http://www.weathervane.rff.org/solutions_and_actions/International/What_to_Do_About_Climate_Change.cfm
Posted by: Ruth Greenspan Bell | May 16, 2006 2:33:27 PM
In response to comment from ProfDorsey?: the information is outdated. In December 2005, the Board of Directors of the World Bank, which includes the US government, approved the continued engagement of the World Bank in the carbon market. Risk management aspects were covered in detail. The Bank's position is to increase renewables in its lending program where feasible and to work towards removing the regulatory and economic barriers that prevent wider adoption.
Posted by: Warren Evans | May 17, 2006 6:38:10 PM
This entry set out to report from the "Carbon Expo, the Global Carbon Market Fair and Conference,.. in Cologne" back in May. Next week I will be attending a similar event in Brussels on the European Union's Emission Trading System, http://www.environmental-finance.com/conferences/2006/EUETS06/intro.htm
Are people still interested in discussing these issues?
Posted by: Thomas Ruddy | Jul 1, 2006 5:30:30 AM
Someone just alerted me that Mr. Ruddy replied to my comment of months ago.
I am out of date...! Aw shucks...
With all due respect, the idea that just because the "Board of Directors of the World Bank, ... approved the continued engagement of the World Bank in the carbon market" means that conflicts of interests were eliminated is at best simpleton-ism at at most a policy-boffin solipsism.
I'm firmly of the mind that the world bank is its own best critic--but it also often does not follow its own criticism. Back to Wapenhans, Herman Daly, streams upon streams of OED's evaluations, and most recent the Extractive Industries Review are all strong cases in point that the Bank not only does not address criticism, but concocts myriad mechanisms to push aside internal critics (saying nothing about the volumes of external critics, from BIC, to DGAP to 50YearsisEnought and beyond---spanning the fix-it or nix-it spectrum).
Posted by: ProfDorsey | Dec 1, 2006 5:25:21 PM
The reply was from Mr. Warren. Apologies for connecting them to Mr. Ruddy.
CODA:
I am at a lost as to what to do with the assertion "the Board of Directors of the World Bank, which includes the US government..."
Does the US' role legitimize the BOD vote? Are we speaking about the same US government that is not a party to Kyoto? Or another government?
Posted by: ProfDorsey | Dec 1, 2006 5:27:51 PM
Hello,
I am studying for an Executive MBA program at BI Norwegian School of Mgmt. For my MBA project I am looking for data and documents to study the future evolution of carbon credit prices. Any directions and information will be highly appreciated.
Posted by: Anil Gupta | Feb 11, 2009 4:18:54 PM