Carbon trading ‘to expand due to Paris climate deal’
Carbon markets are expected to expand as a result of the Paris agreement.
That’s according to 82% of the 146 carbon traders from the International Emissions Trading Association (IETA) surveyed by PwC, which added the figure is up from 58% from 2015.
IETA members were asked questions about “a broad range of organisation types and locations” such as Europe, North America and China.
Around 61% of respondents said existing emissions trading systems (ETS) will make substantial contributions towards meeting the Paris targets.
However 70% agreed existing ETS initiatives are being undermined due to an overlap with other climate policies.
Although carbon price, which respondents believe will drive low carbon investment, has risen dramatically since last year from €30 (£23.1) to €40 (£30.4), expectations in the major markets “fall well short of what is needed” to achieve the goals agreed at COP21.
Around 86% of respondents expect the EU ETS to incentivise low carbon investment before 2030.
They also said they intend to join future ETS schemes in China by 2017 and expect Canada to implement the scheme before 2020 and Australia, Brazil, Chile, Japan, Mexico, South Africa and Turkey before 2025.
Earlier this month, France announced it plans to set a carbon price floor at €30 (£23.1) per tonne.
According to a report by the World Bank, governments around the world raised around $26 billion (£17.9bn) from charging for carbon emissions.