The Role of Market Mechanisms in a Post-2020 Climate Change Agreement
CEPS Special Report No. 87
23 Pages Posted: 9 May 2014
Date Written: May 7, 2014
The world has changed in many ways since 1997 when the Kyoto Protocol was adopted, along some critical axes, both from an economic and emissions points of view. Moreover, and this cannot be quantified, the appetite for global governance, especially for an agreement with such far-reaching implications as a climate change agreement, has diminished considerably. This paper looks at the relationship between the carbon market and a new climate change agreement, to be finalised in Paris in 2015. It tries to answer two key questions: does the carbon market have a role to play in a post-2020 agreement, and what is the role of a post-2020 agreement in the creation and operation of a carbon market?
Keywords: Kyoto Protocol, climate change, carbon market, climate change agreement, post-2020 agreement
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