International Financial Forum 2021: Carbon Pricing Requires Stronger Global Cooperation and Dialogue
China is on track with efforts to achieve “carbon peak and neutrality” targets as it will launch a nationwide carbon trading market in Shanghai in June. While China’s Emissions Trading Scheme gradually gathers pace, global experts are eyeing its roles, alongside other major global carbon markets, in accelerating decarbonisation in the global power sector. Against this backdrop, an International Financial Forum (IFF) Roundtable Conference invited energy and finance experts to clarify the progress of carbon pricing in China and Europe(Nyheter).
Cyril Cassisa, Senior Energy Analyst, Environment and Climate Change Unit at International Energy Agency (IEA), noted he was happy to see China move so quickly to build an effective ETS and is confident of an effective internal pricing system that transforms its industrial system.
Speaking of China’s future carbon market, Wang Yi, Deputy Director of Institutes of Science and Development at Chinese Academy of Sciences, pointed out that more carbon-related policies will roll out to regulate pricing, playing an essential role in helping China achieve carbon peak and neutrality.
“Governments must consider coordinating carbon-related policies – markets, taxes, pricing – as well as coordination between the Carbon Border Adjustment Mechanism in other countries with China’s finance and investment related policies. Achieving these require strengthened international cooperation and dialogue,” he said.
Alain Quinet, Chairman of the French Commission on the Value of Carbon, Deputy CEO of SNCF Reseau, emphasized that carbon neutrality hinges on innovation and international cooperation. His view was echoed by Edmond Alphandéry, IFF Vice President, Chairman of Euro 50 Group, Former French Minister of Economy, who said at the conference the world’s three largest economies and carbon emitters, China, the US, and the EU(Nyheter), should work closely together to promote carbon pricing.
Introducing the carbon market and pricing situation in Europe, Domenico Siniscalco, IFF Vice President, Former Italian Minister of Economy and Finance, Vice Chairman of Morgan Stanley International Limited, explained socio-political factors, regional economic characteristics, and industrial structure lead to differences in carbon pricing whereas carbon prices should be stabilized.
Source: International Finance Forum (IFF)