Session 5 presentation from the 3rd Strategic Dialogue of the Carbon Market, 21-22 September 2018

1. Enhancing ambition
through carbon pricing
Hugh Salway, Head of Global Carbon Markets
UK Department for Business, Energy and Industrial Strategy
2018 Strategic Dialogue of the Carbon Markets Platform

2. Slide title here
2018 Strategic Dialogue of the Carbon Markets Platform
Business-as-usual baseline

3. Article 6:
• “Parties recognize that some Parties choose to pursue voluntary cooperation in
the implementation of their NDCs to allow for higher ambition in their mitigation
and adaptation elements…”
• Cooperative approaches and new Article 6.4 mechanism can enable enhanced
mitigation ambition. However environmental integrity will be critical.
Three of the routes to enhance ambition
Market-based programmes:
• Can allow investments to take place that would not otherwise happen, by giving
value to the emission reductions they create.
• UK (with other donors) funds two relevant World Bank programmes: Carbon
Initiative for Development and Transformative Carbon Asset Facility.
• Example: 1.1m CERs expected from Ci-Dev biogas programme in Ethiopia.
Carbon pricing instruments:
• UK’s Carbon Price Floor, introduced in 2013, adds a ‘carbon price support’ rate
on top of the EU ETS price, for electricity generators.
• Recognised by Aurora Energy Research as the ”main driver” behind the decline
in GB coal generation since 2012, alongside other policies.
• From 2013-2017, emissions from GB electricity system have more than halved.
2018 Strategic Dialogue of the Carbon Markets Platform

4. Ambition in action: the UK electricity sector
2018 Strategic Dialogue of the Carbon Markets Platform

5. Thank you.
2018 Strategic Dialogue of the Carbon Markets Platform