LIFE VIIEW 2050 side events at COP28

The Centre for Climate and Energy Analyses (CAKE) was involved in organisation and particpation in three side events at this year’s COP28- 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), where results of the LIFE VIIEW 2050 project were presented.

“EU ETS and Other Carbon Pricing Measures Towards Climate Neutrality” (4th December 2023, ESTONIAN PAVILION)

The side event was co-organized with the Energy Community Secretariat and focused on the dynamic evolution and future of the EU Emissions Trading System EU ETS, as well as its interaction with other carbon pricing measures in achieving a climate-neutral economy by 2050, including the impacts of Carbon Border Adjustment Mechanism (CBAM).

It was a great discussion on carbon pricing both in the EU and in candidate states such as Moldova.

In the disussion Beatriz Yordi, Director, DG Climate Action, European Commission, underlined the ambitious EU plans concerning carbon pricing measures and current development of the EU ETS, new emissions trading scheme covering buildings and road transport (ETS2), and the newly introduced CBAM. Aliona Cara-Rusnac, Secretary of State, Ministry of Environment in Moldova, highlighted challenges the country is facing, but it seems that Moldova is well prepared to respond to the EU climate policy requirements. The preparation of other countries regarding a fulfillment of all the EU climate obligations seems to be on the good way, what was underlined by Monika Figaj, Climate and Just Transition Expert, Energy Community Secretariat, pouring out the CBAM effects on neighboring countries.

Robert Jeszke, Head of CAKE and LIFE VIIEW 2050 coordinator identified and commented on the most important challenges arising from introducing these measures, also pointing on lessons learned during the implementation of climate policy by Poland and recalling the LIFE VIIEW 2050 project report titled:

VIIEW on EU ETS 2050: Changing the scope of the EU ETS (7.5 MiB, 1,397 hits)

The discussion was moderated by Maciej Cygler, CAKE/ KOBIZE Expert. More information on the Estonia at COP28 Pavilion: Estonia at COP28 — Estonia

Thank you Estonia at COP28 for hosting our event!

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“A Carbon Bank to manage the transition towards a low carbon economy”, ERCST side event (4th December 2023, IETA PAVILION)

Another side event that took place on December 4th – the Finance Day at COP28- was organized by by ERCST – European Roundtable on Climate Change and Sustainable Transition. The Centre for Climate and Energy Analyses (CAKE) was invited to join the discussion.

Robert Jeszke, Head of CAKE admit the European Central Carbon Bank is a promising solution to reshape the EU ETS towards reaching net zero in 2050 and sustain afterwards. Spikes in allowance process after 2030 in a tight market balance would be risky not only for CO2 market, but also for the economy and the society acceptance of EU ETS as a whole. The future EU ETS needs to be flexible, of handling high volatility, and ensuring properly liquidity in the CO2 market. These goals could be achieved by the ECCB. There is no market for removals which are needed for hard abatement emissions. Emerging ETS1 and ETS2 seem to be an obvious solution to deal with emission reductions, however have different natures and different emission reduction costs.

Andrei Marcu, Director of ERCST introduced a key concern about the establishment the Carbon Bank in EU: Do we need this new institution? Who is going to manage it? Liquidity and the openness for removals is the question. Ioana Petcu from Eurelectric emphasized that there is a need for a bank or other institution to keep market stable and adapt fast not only in the EU but also globally. Daniele Agostini from Enel Trading, Mercado Livre de Energia gave his concerns about the potential risk of losing market creditable if the bank is managed by politics. Phillippe Chauveau from Solvay admired that the carbon bank could have a lot of sense in creating a right instrument to ensure liquidity on the market.

You are welcome to watch the recording: https://bit.ly/3NbH53G

More information on CAKE actions at COP28 at our website: https://lnkd.in/dmEeWvpC

Towards a Climate-Neutral Economy: The Role of Carbon Pricing Systems in Moving the Industry Closer to Net-Zero by 2050 (9th December 2023, EU PAVILION & online) .

The CAKE team marked a successful conclusion to its participation at COP28 UAE with the side event “Towards a Climate-Neutral Economy: The Role of Carbon Pricing in Moving the Industry Closer to Net-Zero by 2050”, co-organized by CAKE, European University Institute, International Carbon Action Partnership and European Commission in the EU Pavilion on December 9, 2023.

Speakers key insights:

The event started with the presentation of LIFE VIIEW 2050 project by Robert Jeszke, CEO of CAKE followed by Simone Borghesi from Florence School of Regulation presenting the LIFE COASE project, then all moved to a discussion on carbon pricing.

Robert Jeszke emphasized the need to carefully consider recent modifications to the EU ETS while preparing to moving forward with climate and energy architecture design after 2030. Mette Quinn, Deputy Director, DG Climate Action, European Commission made all aware of the ambition and scope of the EU climate policy measures and emphasized the importance of a robust commitment to climate action. Simone Borghesi, Director, Florence School of Regulation, EUI underscored the necessity for reflection and prioritizing communication to convince the society of the effectiveness of the ETS as a key measure in the fight against climate change. James Corbett, Environmental Director from the World Shipping Council provided a business perspective, acknowledging the acceptance of ambitious climate policy targets while underlining the need for predictability and certainty in these policies. He also hinted at the WSC’s commitment to achieving a shipping net-zero target by 2050.

The discussion further gained depth with QIAN Guoqiang from SinoCarbon Innovation & Investment Co., Ltd. He expanded the conversation to include China’s eight carbon trading schemes, thereby offering a global perspective. Eve Tamme, Climate Principles then drew attention to the future of the EU ETS, particularly focusing on the depleting emission allowances and the inclusion of removals in the emission trading schemes, a one of key aspect of the LIFE VIIEW 2050 project also highlighted by Robert Jeszke in his introductory presentation.

The event concluded with remarks by Gerassimos Thomas, Director General of DG TAXUD, European Commission. He posed a critical question: Do we have a viable alternative to carbon pricing? He pointed out the relative ineffectiveness of regulation alone and called for intensified collaboration to ensure the integrity of carbon pricing mechanisms.

This side event at COP28 UAE provided valuable insights into the multifaceted challenges and concerns pivotal for advancing towards a climate-neutral economy. The panellists highlighted the complex nature of climate policy measures, the expansion of carbon pricing mechanisms to new sectors, and the imperative of global cooperation in addressing climate change.

Thank you to the speakers on the panel Simone Borghesi, Mette Quinn, Zhibin Chen, Gerassimos Thomas, James Corbett, QIAN Guoqiang & Eve Tamme for an engaging discussion.

More information and programme: https://www.cop28eusideevents.eu/e/programme?date=dec-09

You are welcome to watch the recording: The Role of Carbon Pricing Systems in Moving the Industry Closer to Net-Zero by 2050