Workshop on the role of carbon markets in reaching carbon neutrality

As the number of carbon markets grows, the long-term contribution of market-based instruments to reach carbon neutrality by 2050 should be further assessed. In general, the size, scope, parameters, and prices of Emissions Trading Systems (ETSs) vary and evolve depending on the social, economic, political, and legal context of each jurisdiction. All these aspects of regulated carbon markets are to be considered by policymakers. To tackle challenges, regulators may find insights from new scientific evidence.

This workshop aims to collect insights from policy-relevant research on recent trends in carbon markets, with a particular focus on the EU ETS. It will address topics such as future allowance prices, scope expansion of ETSs and market oversight, among others. Furthermore, it will focus on the methodologies used to assess ETSs (i.e., ex-post and ex-ante model-based assessments) and their results.

The 3-day event will comprise a keynote lecture, paper presentations, a policy roundtable and a guest lecture.

It is organised by FSR Climate under the framework of the LIFE COASE project, which is co-funded by the European Union’s Life Programme. The workshop combines the ex-post and the ex-ante model based assessment of ETSs and will take place during the Joint Session of Workshops of the Robert Schuman Centre in the context of the 30 anniversary of the Centre.

Participation in the event is via invitation only. Find out more about the programme of the Joint Session of Workshops here.

Programme

18 June 

 10:00-10:45 Introduction, Tour de Table, Ice Breaker 

 11:15-12:05 Keynote speech: The merits and shortcomings of the EU carbon markets 

• Sonja Peterson | Kiel Institute for the World Economy 

 12:15-13:00 Session 1: Chinese National ETS Model 

China’s national ETS price outlook: long-term forecast and policy scenarios [Introduction]

• Boyang Jin | London Stock Exchange Group 

14:00-15:30 Session 2: EU ETS Models 

Economic interaction between climate policy instruments [Abstract]

• Jakub Boratyński | KOBiZE 

 Sequencing CDR into the EU ETS [Abstract]

• Sebastian Osorio | Potsdam-Institute for Climate Impact Research 

 16:00-17:10 ETS Model Comparison 

• Sebastian Osorio 

19 June 

10:00-11:30 Session 3: Carbon leakage 

Carbon border adjustments: an examination of the direct and indirect effects of the European Carbon Border Adjustment Mechanism (CBAM) 

• Antton Haramboure |Organization for Economic Cooperation and Development 

 Carbon prices, emissions and international trade in sectors at risk of carbon leakage: evidence from 140 countries [Abstract] 

• Jonas Teusch | OECD

 12:00-13:30 Session 4: Carbon pricing and firm behaviour 

The effects of carbon pricing along the production network [Abstract]

• Thomas Stoerk | National Bank of Belgium & LSE 

 Realist analysis of UK ETS trading and abatement behaviour [Introduction]

• Mary Anderson | CAG Consultants 

 14:30-15:30 Policy panel: ETS Endgame – Including new sectors and removals ETSs 

• Edoardo Croci | Bocconi University 
• Sebastian Osorio | Potsdam-Institute for Climate Impact Research 
• Elena Marro | European University Institute 

 16:00-17:30 Session 5: Beyond the EU ETS: Offsets & China ETS Policy Overlap 

Willingness-to-claim voluntary carbon offsets: market evidence of revealed-preferences [Abstract]

• Tara L’Horty | Université de Lorraine 

 Interactions between emissions trading systems and other policies: insights from theory and an application to China [Abstract]

• Carolyn Fischer | World Bank 

20 June 

09:15-11:30 Session 6: Decarbonising industry and agriculture 

Steel in the EU CBAM: will scrap-resource shuffling delay the sector’s global decarbonization? [Abstract]

• Maxime Gérardin | France Stratégie 

 Market design options for integrating negative emissions into the ETS [Introduction]

• Carlotta Von Bebenburg | Oxera 

 Options to expand emissions trading to emissions from agriculture in Europe [Abstract]

• Benjamin Görlach | Ecologic Institute 

 12:00-13:30 Session 7: Legislation for carbon pricing 

The integration of negative emissions in the EU legislation [Introduction]

• Elena Bonfiglio | European Roundtable on Climate Change and Sustainable Transition 

 Enhancing climate policies through the implementation of regulated carbon markets in Brazil: reflecting on strategies for closing the policy-science loop [Introduction]

• Adriana I. B. S. L. Di Pasquale | University of Pisa 

 14:30-15:30 Guest lecture: Stopping climate change 

Paul Ekins | UCL 

 16:00-17:30 General discussion & conclusions 

17.30 Close