In April of this year, the COP26 UN climate change conference set to take place in Glasgow in November 2020 was postponed due to COVID-19. One consequence: agreement on the rules for a global emissions trading scheme under Article 6 of the Paris Agreement will be deferred again, to at least 2021. As agreement under Article 6 has been delayed in the past, various groups – including the International Carbon Action Partnership (ICAP) and Carbon Market Watch – have advocated for increased linking of domestic schemes. The thinking is that this would encourage the creation of a global carbon market, involving a range of State and non-State actors, and thus lead to harmonization of regulatory standards and lower the costs of reducing emissions.
In that context, this webinar considers existing international and domestic schemes, as well as the risks to market actors as those schemes evolve and interact, before discussing how these risks may give rise to international disputes.
Our speakers will cover the following topics:
- An overview of emissions trading schemes, explaining the basic objective of a cap-and-trade regime and carbon offsetting, the relevance of the Kyoto Protocol and the Paris Agreement, and the range of regional and domestic trading and offsetting schemes that have been established to date.
- Examples of the range of legal relationships created between entities involved in emissions trading, including between and amongst States, regions, cities and corporates.
- Discussion of the risks and opportunities for participants in the current and future landscape of emissions trading schemes, including changing international, regional and domestic policies, tightening of emissions caps, market price dynamics, amongst others.
- How these risks are allocated and addressed in a variety of legal instruments, from policies to contracts, some of which create unique legal relationships, such as agreements to link schemes across international borders.
- Discussion of the current and future landscape of related disputes, including the role of arbitration in helping to mitigate the risks associated with emissions trading and carbon offsetting and thereby promote more efficient and effective trading regimes.
Organiser: The British Institute of International and Comparative Law
Collaborating Entity: Three Crowns