CAKE on the LIFE COASE Workshop, 27.06.2025
On the 27th June 2025 CAKE/KOBIZE participated in the workshop “LIFE COASE- Workshop on ex-ante assessments of emissions trading” organised by Florence School of Regulation/ European University Institute.
- Jakub Boratyński, our CAKE expert was a speaker during the Session 2: “Modelling economic implications of Article 6 and ETS linking – recent evidence”. Jakub presented results of CAKE analysis prespared under LIFE VIIEW 2050 project.
- VIIEW on EU ETS 2050:
VIIEW on EU ETS 2050: Linking EU ETS with other carbon pricing mechanisms (3.0 MiB, 264 hits)
- During the workshop, participants covered a range of issues, from technical challenges in modeling linkages between carbon-pricing systems to administrative and political aspects of implementing Article 6 of the Paris Agreement, which defines how countries can cooperate to meet and enhance their emission-reduction targets. They reflected on why Article 6 mechanisms have received limited attention in model-based analyses. Participants further examined proposals to allow international carbon credits to fulfill obligations under the EU Carbon Border Adjustment Mechanism (CBAM); although CBAM today requires the surrender of certificates equivalent to the EU ETS carbon price, consideration of credit use is part of the EU’s pending review of CBAM’s scope and modalities. It was noted that CBAM’s introduction has already accelerated efforts in China & other BRICS countries to integrate mitigation targets into policy and corporate practice.
- Agnieszka Gałan, Expert The National Centre for Emissions Management (KOBiZE) contributed insights during the open discussion on scaling and integrating carbon markets under Article 6 of the Paris Agreement. She stressed that scaling Article 6 hinges on clear demand signals-especially through upcoming NDC submissions as well as institutional readiness. On policy integration she explored the potential for integrating Article 6 into broader trade and industrial policy, such as the EU Carbon Border Adjustment Mechanism.
- One forward-looking proposal: a European Carbon Central Bank (ECCB) to manage international carbon credits in the EU ETS, stabilize prices, and fund clean energy projects.
- You can read our CAKE brief on ECCB here:
Policy brief: Introducing the ECCB as the new institution to manage the future EU carbon market (799.8 KiB, 53 hits)
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