Simone Borghesi | S2E6 | What’s next for carbon markets?

In this episode of Policy Briefcase, hosts Leonardo Meeus and James Kneebone are joined by Simone Borghesi, Director of the FSR climate area.

In this episode of the FSR Policy Briefcase (Season 2, Episode 6), hosts Leonardo Meeus and James Kneebone are joined by the Director of the FSR Climate area, Simone Borghesi. Together, they delve into the evolving landscape of carbon markets, covering everything from linking compliance markets, to issues of carbon leakage, and the strengths and weaknesses of different approaches to emission removal.

Drawing from Simone’s recent Policy Brief, the discussion addresses the progress of efforts to link EU and UK emissions trading systems, developments regarding Article 6 from the Paris Agreement, and some new carbon markets expected to be implemented in the coming years. Recorded in May 2025. https://cadmus.eui.eu/entities/publication/29f52f6d-6ce0-45dd-9434-f18931ed5c59

2:34 – Introduction
4:24 – Cooperation on carbon markets through the ‘Florence Process’
7:24 – Revisions to carbon markets
10:20 – Impact of emission pricing on competitiveness and carbon leakage
14:24 – Engineered vs nature-based carbon removals
16:40 – Avoided emissions
22:50 – Linking carbon markets
26:08 – Absolute vs emission intensity caps
28:22 – The motivations behind CBAM
29:33 – Simone’s Policy Brief