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State and Trends of Carbon Pricing 2015 (September), by World Thinkstock; Page 19: Mike Kiev/Istock/Thinkstock; Page 51: Bank, Washington, DC State and Trends Washington DC of Carbon Pricing September 2015 2015 2 State and Trends Washington DC of Carbon Pricing September 2015 2015 This report was prepared jointly by the World Bank and Ecofys. Alexandre Kossoy and Grzegorz Peszko led the World Bank team, also consisting of Klaus Oppermann and Nicolai Prytz, which conceptualized this report. The Ecofys team consisted of Noémie Klein, Kornelis Blok, Long Lam, Lindee Wong, and Bram Borkent. © 2015 International Bank for Reconstruction Translations – If you create a translation of this work, please add and Development/The World Bank the following disclaimer along with the attribution: This translation 1818 H Street NW, Washington DC 20433 was not created by The World Bank and should not be considered Telephone: 202-473-1000; Internet: www.worldbank.org an official World Bank translation. The World Bank shall not be Some rights reserved liable for any content or error in this translation. 1 2 3 4 17 16 15 This work is a product of the staff of The World Bank with Adaptations – If you create an adaptation of this work, please external contributions. The findings, interpretations, and add the following disclaimer along with the attribution: This is an conclusions expressed in this work do not necessarily reflect adaptation of an original work by The World Bank. Responsibility the views of The World Bank, its Board of Executive Directors, for the views and opinions expressed in the adaptation rests solely or the governments they represent. The World Bank does not with the author or authors of the adaptation and are not endorsed guarantee the accuracy of the data included in this work. The by The World Bank. boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of Third-party content – The World Bank does not necessarily own The World Bank concerning the legal status of any territory or the each component of the content contained within the work. The endorsement or acceptance of such boundaries. World Bank therefore does not warrant that the use of any third- Nothing herein shall constitute or be considered to be a limitation party-owned individual component or part contained in the work will upon or waiver of the privileges and immunities of The World not infringe on the rights of those third parties. The risk of claims Bank, all of which are specifically reserved. resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine Rights and Permissions whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/ All queries on rights and licenses should be addressed to the licenses/by/3.0/igo. Under the Creative Commons Attribution Publishing and Knowledge Division, The World Bank, 1818 H license, you are free to copy, distribute, transmit, and adapt this work, Street NW, Washington, DC 20433, USA; fax: 202-522-2625; including for commercial purposes, under the following conditions: e-mail: [email protected]. ISBN (electronic): 978-1-4648-0725-1 Attribution – Please cite the work as follows: Alexandre Kossoy, DOI: 10.1596/ 978-1-4648-0725-1 Grzegorz Peszko, Klaus Oppermann, Nicolai Prytz, Noémie Klein, Kornelis Blok, Long Lam, Lindee Wong, Bram Borkent. 2015. Photo credits: page 15: Mr.Lukchai Chaimongkon/iStock/ State and Trends of Carbon Pricing 2015 (September), by World Thinkstock; page 19: Mike_Kiev/iStock/Thinkstock; page 51: Bank, Washington, DC. Toa55/Shutterstock.com; page 63: omihay/Shutterstock.com Doi: 10.1596/ 978-1-4648-0725-1 License: Creative Commons Attribution CC BY 3.0 IGO Design: Meike Naumann, Visuelle Kommunikation 2 Reflecting the growing momentum for carbon pricing worldwide, the 2015 edition of the State and Trends of Carbon Pricing report targets a wider audience of public and private stakeholders who are engaged in carbon pricing design and implementation. This report also provides critical input for the negotiations leading up to the Conference of the Parties (COP) in Paris. As in the previous editions, the report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including national and subnational initiatives. Furthermore, it gives an overview of current corporate carbon pricing instruments. To better reflect the plethora of topics being considered in the climate dialogue, the report also analyzes competitiveness and carbon leakage, and their impact on the development of carbon pricing instruments. The task team responsible for this report intends to select new relevant topics to be explored in future editions. These topics could include, for example, the effectiveness of existing and emerging carbon pricing instruments, and how to measure it. Finally, this year’s report gives the audience a forward-looking assessment of the advantages of international cooperation in reaching stringent global mitigation targets. A review of existing modeling work provides a qualitative and quantitative assessment of cost saving potentials and the magnitude of financial flows inherent to international cooperation aimed at reducing greenhouse gas emissions to a level consistent with the 2°C climate stabilization goal. The report benefited greatly from the valuable written contributions and perspectives of our colleagues in the climate and carbon finance community, ensuring the quality and clarity of this report: Emilie Alberola, Carter Brandon, Marcos Castro, Alyssa Gilbert, Andries Hof, Pauline Maree Kennedy, Thomas Kerr, Grant Kirkman, Benoît Leguet, Alexios Pantelias, Jayoung Park, Ian Parry, Paul Steele, Massimo Tavoni, Adam Whitmore, and Peter Zapfel. We wish to extend our gratitude to those who offered their cooperation and insights during the development of this report: Marion Afriat, Soffia Alarcon-Diaz, Marco Aurélio dos Santos Araujo, Adrien de Bassompierre, Nils Axel Braathen, Stefanie Bradtner, Pieter van Breevort, Kurt van Dender, Guy Dundas, Maxime Durande, Jane Ebinger, Monica Paola Echegoyen Lopez, Marianne Fay, Shari Friedman, Camille Funnell, Daniela Goehler, Pierre Guigon, Thomas Forth, Shari Friedman, Isabel Hagbrink, Ferry van Hagen, Kelley Hamrick, Takashi Hongo, Matthieu Jalard, Maria Kolos, Franck Lecocq, Pedro Martins Barata, Frank Melum, Sarah Moyer, Samantha Mullender, Christian Nabe, Meike Naumann, New Zealand Ministry for the Environment, Norwegian Ministry of Finance, Inge Pakulski, Baptiste Perrissin-Fabert, Simon Quemin, Ulrika Raab, Venkata Ramana Putti, Kate Rich, Juan Pedro Searle, Igor Shishlov, Bianca Sylvester, Manasvini Vaidyula, Detlef van Vuuren, Jessica Wade Murphy, Xueman Wang, John Ward, Carsten Warnecke, Vikram Widge, Qian Wu, Liu Ying, and Menggeng Zhu. We also acknowledge the support from the Partnership for Market Readiness and Vivid Economics, who produced the upcoming technical report on carbon leakage, from which Grzegorz Peszko has drawn generously to write section 3. 3 LIST OF ABBREVIATIONS AND ACRONYMS °C Degrees Celsius A AAU Assigned Amount Unit ADB Asian Development Bank ADP Ad Hoc Working Group on the Durban Platform for Enhanced Action ARB Air Resources Board B BCA Border Carbon Adjustment C CCER Chinese Certified Emission Reduction CCR Cost Containment Reserve CCS Carbon Capture and Storage CDM Clean Development Mechanism CDP Carbon Disclosure Project CER Certified Emission Reduction Ci-Dev Carbon Initiative for Development CMP Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol CO2 Carbon dioxide CO2e Carbon dioxide equivalent COP Conference of the Parties CP1 First Commitment Period under the Kyoto Protocol CP2 Second Commitment Period under the Kyoto Protocol CPM Carbon Pricing Mechanism D DNA Designated National Authority E EBRD European Bank of Reconstruction and Development ERU Emission Reduction Unit ETS Emissions Trading System EU European Union EU ETS European Union Emissions Trading System F FCPF Forest Carbon Partnership Facility FSB Fixed Sector Benchmarking FVA Framework for Various Approaches 4 G GDP Gross Domestic Product GHG Greenhouse gas Gt Gigaton GtCO2e Gigaton of carbon dioxide equivalent I ICAO International Civil Aviation Organization ICAP International Carbon Action Partnership IEA International Energy Agency IET International Emissions Trading INDC Intended Nationally Determined Contribution IPCC Intergovernmental Panel on Climate Change J JI Joint Implementation L LIMITS Low climate IMpact scenarios and the Implications of required Tight emission control Strategies LPG Liquefied Petroleum Gas M MRV Monitoring, Reporting and Verification Mt Megaton MtCO2e Megaton of carbon dioxide equivalent MW Megawatt N NAMA Nationally Appropriate Mitigation Action NDRC China’s National Development and Reform Commission NMM New Market-based Mechanism NZ-AAU New Zealand-originated Assigned Amount Unit NZ ETS New Zealand Emissions Trading System NZU New Zealand Unit O OBA Output-Based Allocation OECD Organisation for Economic Co-operation and Development P PBL Planbureau voor de Leefomgeving (Netherlands Environmental Assessment Agency) PMR Partnership for Market Readiness PoA Program of Activities ppm Parts per million 5 List of abbreviations and acronyms R RBF Results-Based Finance REDD Reducing Emissions from Deforestation
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