CARBON PRICING WATCH 2016

CARBON PRICING WATCH 2016 An advanc brif from th Stat and Trnds of Carbon Pricing 2016 rport, to b rlasd lat 2016 At a glanc accord in Paris, China ETS on th horizon 2015 witnssd an historic global stp forward in taking action on climat chang. World ladrs rachd an agrmnt on Dcmbr 12, 2015 at th 21 st Confrnc of th Partis (COP 21) to th Unitd Nations Framwork Convntion on Climat Chang (UNFCCC) in Paris to kp th global avrag tmpratur incras wll blow 2 C and pursu fforts to hold th incras to 1.5 C. 1 On April 22, 2016, at a spcial crmony in Nw York, about 90% of th Partis to th UNFCCC signd th Paris Agrmnt, a and 15 Partis dpositd thir instrumnts of ratification. 2, b This agrmnt could not b mor timly, as 2015 markd th warmst yar sinc rcords bgan in 1880. 3 As of May 1, 2016, 162 intndd nationally dtrmind contributions (INDCs), rprsnting 190 Partis, had bn submittd to th UNFCCC. Ths INDCs outlin th intndd national fforts toward rducing grnhous gas (GHG) missions and climat rsilint dvlopmnt undr th Paris Agrmnt. Mor than 90 of th submittd INDCs includ proposals for mission trading systms (ETSs), carbon taxs and othr carbon pricing initiativs. 4 Partis stating in thir INDCs that thy ar planning or considring th us of domstic or intrnational markt mchanisms c account for 61 prcnt of global GHG missions. Most of ths Partis rqust financial and tchnological support through intrnational carbon markts. Among th Partis planning or considring th us of markt mchanisms ar thr of th world s fiv largst mittrs. d a 175 Partis (174 countris and th Europan Union) signd th Paris Agrmnt at th spcial crmony on April 22, 2016. b Th Agrmnt will rmain opn for signatur until April 21, 2017. S dtails in th sction Intrnational carbon pricing updat blow. c Including Rducing Emissions from Dforstation and Forst Dgradation and sustainabl forst managmnt, consrvation of forsts, and nhancmnt of carbon sinks (REDD+) mchanism. d China, India and Brazil. Th othr two Partis, th US and th EU, did not stat th us of markt mchanisms in thir INDC, dspit carbon pricing initiativs alrady bing implmntd at a rgional, national and/or subnational lvl.

2 Ahad of th COP in Paris, an unprcdntd allianc of Hads of Stat, city and stat ladrs, with th support of hads of lading companis, joind forcs to urg countris and companis to put a pric on carbon. 5 In addition, Paris saw th launch of th Carbon Pricing Ladrship Coalition (CPLC). 6 Th CPLC brings togthr govrnmnts, businss and non-govrnmnt organizations (NGOs) that sk to tak action to acclrat th global uptak of carbon pricing. Th launch of th G7 Carbon Markt Platform 7 and th Nw Zaland-ld dclaration on carbon markts 8 during COP 21 also rcogniz th importanc of carbon pricing initiativs in rducing GHG missions. Furthrmor, th global aviation sctor may implmnt an intrnational carbon offstting mchanism in 2021, dtails of which ar xpctd to b approvd latr this yar. Ths initiativs all undrscor th growing momntum for countris to voluntarily mbrac carbon pricing to mitigat climat chang and build climat rsilinc. In 2016, about 40 national jurisdictions and ovr 20 citis, stats, and rgions, including svn out of th world s tn largst conomis, f ar putting a pric on carbon, as displayd in Figur 1. Ths jurisdictions ar rsponsibl for almost a quartr of global GHG missions. g On avrag, carbon pricing initiativs covr about half of th missions in ths jurisdictions. This translats to about 7 gigatons of carbon dioxid quivalnt (GtCO 2 ) or about 13 prcnt of global GHG missions, as displayd in Figur 2. This figur rprsnts a thrfold incras ovr th past dcad. h Sinc 2015, four nw carbon pricing initiativs hav bn implmntd or schduld for implmntation: Th Rpublic of Kora ETS startd on January 1, 2015; Th Portugal carbon tax ntrd into forc on January 1, 2015, covring all nrgy products usd in non-eu ETS sctors; i On January 1, 2016, British Columbia launchd an ETS that will covr th liqufid natural gas (LNG) facilitis that ar currntly undr construction, onc thy bcom oprational; Australia is back on th carbon pricing map with th introduction of a safguard mchanism to limit and pric missions on July 1, 2016. This stablishs a nw ETS, following th abolishmnt of th Australian Carbon Pricing Mchanism in 2014. A major stp forward for carbon pricing took plac in 2015 with China dvloping its plans for a national ETS. Th Chins Prsidnt Xi Jinping announcd in Sptmbr 2015 j that th national ETS will commnc in 2017. 9 Early unofficial stimats show that following this launch, about half of global GHG missions will b gnratd by jurisdictions that ar putting a pric on carbon. k Furthrmor, missions covrd by carbon pricing initiativs ar stimatd to almost doubl from 13 prcnt to about 25 prcnt of global GHG missions, as illustratd in Figurs 2 and 4. Th Carbon Pricing Ladrship Coalition (CPLC) is a voluntary partnrship of govrnmnts, businsss, and civil socity organizations that works to catalyz action toward th succssful dsign and implmntation of carbon pricing initiativs around th world, hlping maintain comptitivnss, crat jobs, ncourag innovation, and achiv maningful missions rductions. Launchd in 2015 at COP 21, th Coalition brings togthr ladrs from govrnmnt and businss to build th vidnc bas for succssful carbon pricing; to mobiliz businss support; and to hav constructiv dialogus, country by country, about how to advanc ffctiv carbon pricing. 25 govrnmnts and ovr 100 lading businsss and stratgic partnrs hav thus far joind th CPLC to contribut to ths fforts. f Th svn conomis ar th Unitd Stats, China, Japan, Grmany, UK, Franc and Italy. Carbon pricing initiativs ar implmntd at a subnational lvl in th Unitd Stats and China. Th world s largst conomis wr dtrmind using th World Bank s gross domstic product data for 2014. g Figurs as of May 1, 2016. For th purpos of th Carbon Pricing Watch, carbon pricing rfrs to initiativs that put an xplicit pric on GHG missions. Carbon prics ar thrfor xprssd as a valu pr ton of CO 2. h In 2006, carbon pricing initiativs covrd 4 prcnt of annual global GHG missions; in 2016, this figur stands at 13 prcnt. i For furthr dtails on th Rpublic of Kora ETS and Portugal carbon tax, plas rfr to Kossoy t al., Stat and Trnds of Carbon Pricing, Sptmbr 2015. j This announcmnt was mad on Sptmbr 25, 2015 as part of th Unitd Stats (US)-China Joint Prsidntial Statmnt on Climat Chang. k Th authors stimat that th missions to b covrd undr th Chins national ETS will b about half of China s national GHG missions, basd on th sctor scop, as statd in th US- China Joint Prsidntial Statmnt on Climat Chang and public missions data from th Intrnational Enrgy Agncy. Othrs informd rsarchrs hav judgd that th GHG missions covrag will b about 40-60% of China s total GHG missions. Ths stimats hav not bn validatd by Chins authoritis.

3 In addition, Mxico announcd th framwork for a rgistry of national missions that, togthr with othr xisting policis, will allow th implmntation of a national carbon markt starting in 2018. Canada is xploring options for carbon pricing on a national lvl. Manitoba, Ontario and Québc signd a mmorandum of undrstanding that statd thir intntion to link thir ETSs undr th Wstrn Climat Initiativ. Albrta is planning to transition to an conomy-wid carbon pricing systm from January 1, 2017. At th sam tim, initiativs in South Africa and Kazakhstan hav xprincd stbacks ovr th past yar. l In 2015, govrnmnts raisd about US$26 billion in rvnus from carbon pricing initiativs. m This rprsnts a 60% incras compard to th rvnus raisd in 2014, which was stimatd to b about US$16 billion. As shown in Figur 3, th obsrvd carbon prics span a wid rang from lss than US$1/tCO 2 to US$137/tCO 2. About thr quartrs of th covrd missions ar pricd at lss than US$10/tCO 2. Th total valu of ETSs and carbon taxs in 2016 is just blow US$50 billion, similar to th valu rportd in th Stat and Trnds of Carbon Pricing 2015. n This rlativ stability is du to incrass in various carbon tax rats bing offst by th tmporary suspnsion of th Kazakhstan ETS and lowr carbon prics in most ETSs. If th Chins national ETS is implmntd, arly unofficial stimats suggst that th total valu of ETSs and carbon taxs could potntially doubl to about US$100 billion. o Ovr 1,000 companis rportd to CDP in 2015 that thy ar currntly using an intrnal pric on carbon or plan to do so within th nxt two yars. 10 Of ths companis, 435 disclosd th us of intrnal carbon pricing in 2015 almost tripl th numbr compard to 2014. 11 Th largst incrass cam from companis locatd in mrging markts particularly Africa and Asia. On April 22, 2016, th Unitd Nations Global Compact (UNGC) calld for a minimum intrnal carbon pric lvl of US$100/tCO 2 by 2020 in ordr to b consistnt with a 1.5 2 C pathway. 12 Th corporat carbon pric rang rportd to CDP in 2015 spans from US$1/tCO 2 to US$357/tCO 2, 13 and six companis hav disclosd that thy ar using pric lvls that ar consistnt with th UNGC rcommndation. Looking ahad, th implmntation of th Paris Agrmnt could nabl jurisdictions to xpand thir carbon pricing initiativs and facilitat coopration. Th alignmnt of domstic and intrnational carbon pricing initiativs with othr domstic-lvl climat mitigation actions will b a ky priority. To continu to build momntum, th High Lvl Panl on Carbon Pricing, a group of govrnmnt ladrs and intrnational organizations, st forward a global targt to doubl th missions covrd by carbon pricing initiativs to 25 prcnt by 2020 and to doubl this covrag again within a dcad. 14 l South Africa has dlayd its carbon tax for anothr yar and Kazakhstan has tmporarily suspndd its ETS. m Authors calculations, basd on auction rvnu rports of th diffrnt ETSs, paymnts into Albrta s Climat Chang and Managmnt Fund, and th annual budgt of govrnmnts with carbon taxs in plac. n Th total valu of th ETS markts was stimatd by multiplying ach ETS s annual allowanc volum for 2016, or th most rcnt yarly volum data, with th allowanc pric on April 1, 2016. Th total valu for carbon taxs was drivd from official govrnmnt budgts for 2016. Whr th allowanc volum (for an ETS) or budgt information (for a carbon tax) was unavailabl, th valu of th carbon pricing initiativ was calculatd by multiplying th GHG missions covrd with th nominal carbon pric on April 1, 2016. No information was availabl on th amount of mission rduction crdits which could b gnratd undr th Australian safguard mchanism; thrfor, this was not includd in th valu calculation. o Th valu was stimatd basd on th approximat missions covrd undr th Chins national ETS multiplid by th wightd avrag carbon pric ovr all carbon pricing initiativs globally in 2016. This stimat has not bn validatd by Chins authoritis and is not basd on official sourcs.

4 Figur 1. Summary map of xisting, mrging and potntial rgional, national and subnational carbon pricing initiativs (ETS and tax) ALBERTA MANITOBA CANADA BRITISH COLUMBIA WASHINGTON OREGON CALIFORNIA ONTARIO ICELAND QUÉBEC RGGI EU UKRAINE KAZAKHSTAN REPUBLIC OF KOREA JAPAN TURKEY CHINA MEXICO THAILAND BRAZIL CHILE RIO DE JANEIRO SÃO PAULO SOUTH AFRICA AUSTRALIA NEW ZEALAND NORWAY SWEDEN DENMARK FINLAND REPUBLIC OF KOREA UK IRELAND ESTONIA LATVIA POLAND BEIJING TIANJIN KYOTO SAITAMA TOKYO PORTUGAL HUBEI SHANGHAI FRANCE SLOVENIA SWITZERLAND CHONG- QING SHENZHEN GUANGDONG TAIWAN Tally of carbon pricing initiativs 14 4 1 40 ETS implmntd or schduld for implmntation Carbon tax implmntd or schduld for implmntation ETS or carbon tax undr considration ETS and carbon tax implmntd or schduld ETS implmntd or schduld, tax undr considration Carbon tax implmntd or schduld, ETS undr considration 22 22 23 Th circls rprsnt subnational jurisdictions. Th circls ar not rprsntativ of th siz of th carbon pricing instrumnt, but show th subnational rgions (larg circls) and citis (small circls). National lvl Subnational lvl Not: Carbon pricing initiativs ar considrd schduld for implmntation onc thy hav bn formally adoptd through lgislation and hav an official, plannd start dat.

5 Figur 2. Rgional, national and subnational carbon pricing initiativs: shar of global missions covrd 25% 20% 15% 35 36 38 40 10% 31 Shar of global GHG missions 5% 0% Numbr of implmntd initiativs 2 4 5 6 7 8 9 10 14 15 18 20 23 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Finland carbon tax (1990 ) Poland carbon tax (1990 ) Swdn carbon tax (1991 ) Norway carbon tax (1991 ) Dnmark carbon tax (1992 ) Latvia carbon tax (1995 ) Slovnia carbon tax (1996 ) Estonia carbon tax (2000 ) EU ETS (2005 ) Albrta SGER (2007 ) Switzrland ETS (2008 ) Nw Zaland ETS (2008 ) BC carbon tax (2008 ) Switzrland carbon tax (2008 ) RGGI (2009 ) Icland carbon tax (2010 ) Irland carbon tax (2010 ) Tokyo CaT (2010 ) Saitama ETS (2011 ) Kyoto ETS (2011 ) California CaT (2012 ) Japan carbon tax (2012 ) Australia CPM (2012-2014) Québc CaT (2013 ) Kazakhstan ETS (2013 ) UK carbon pric floor (2013 ) Shnzhn Pilot ETS (2013 ) Shanghai Pilot ETS (2013 ) Bijing Pilot ETS (2013 ) Tianjin Pilot ETS (2013 ) Guangdong Pilot ETS (2013 ) Hubi Pilot ETS (2014 ) Chongqing Pilot ETS (2014 ) Franc carbon tax (2014 ) Mxico carbon tax (2014 ) Kora ETS (2015 ) Portugal carbon tax (2015 ) BC GGIRCA (2016 ) Australia ERF (safguard mchanism) (2016 ) South Africa carbon tax (2017 ) Chil carbon tax (2017 ) China national ETS (2017 ) Not: Only th introduction or rmoval of an ETS or carbon tax is shown. Emissions ar givn as a shar of global GHG missions in 2012. Annual changs in global, rgional, national, and subnational GHG missions ar not shown in th graph. Data on th covrag of th city-lvl Kyoto ETS wr not accssibl and th British Columbia Grnhous Gas Industrial Rporting and Control Act (GGIRCA) dos not covr any missions yt; thir covrags ar thrfor shown as zro. Th information on th Chins national ETS rprsnts arly unofficial stimats basd on th Chins Prsidnt s announcmnt in Sptmbr 2015.

6 Figur 3. Prics in xisting carbon pricing initiativs US$ 140/ tco 2 137 Swdn carbon tax US$ 100/ tco 2 88 Switzrland carbon tax US$ 80/ tco 2 66 Finland carbon tax (transport fuls) US$ 60/ tco 2 62 Finland carbon tax (hating fuls) 53 Norway carbon tax (uppr) Not: Prics on April 1, 2016. Prics ar not ncssarily comparabl btwn carbon pricing initiativs bcaus of diffrncs in th numbr of sctors covrd and allocation mthods applid, spcific xmptions, and diffrnt compnsation mthods. US$ 40/ tco 2 US$/tCO 2 US$ 20/ tco 2 US$ 0/ tco 2 31 Tokyo CaT, Saitama ETS 26 25 Dnmark carbon tax, UK carbon pric floor Franc carbon tax 23 BC carbon tax, Irland carbon tax 20 Slovnia carbon tax 16 Kora ETS 15 Albrta SGER 13 California CaT, Québc CaT 9 6 3 <1 8 4 2 Switzrland ETS, Icland carbon tax Bijing Pilot ETS, RGGI, EU ETS, Shnzhn Pilot ETS Mxico carbon tax (uppr), Japan carbon tax Shanghai Pilot ETS, Mxico carbon tax (lowr), Poland carbon tax 9 6 3 <1 Nw Zaland ETS, 8 Portugal carbon tax Latvia carbon tax, 4 Tianjin Pilot ETS, Norway carbon tax (lowr), Hubi Pilot ETS Estonia carbon tax, 2 Guangdong Pilot ETS, Chongqing Pilot ETS

7 Intrnational carbon pricing updat Th Paris Agrmnt and INDCs As of May 1, 2016, 177 Partis hav signd th Agrmnt, and 16 Partis hav dpositd thir instrumnts for ratification. 15 Th Agrmnt will rmain opn for signatur until April 21, 2017. Any Party to th UNFCCC that has not signd th Agrmnt by thn may dposit its instrumnt of accssion aftr that dat. A Party to th UNFCCC that has signd th Agrmnt may dposit its instrumnt of ratification, accptanc or approval following signatur. Th Agrmnt will ntr into forc whn it has bn ratifid by at last 55 Partis to th UNFCCC that collctivly account for at last 55 prcnt of global GHG missions. Onc th Agrmnt ntrs into forc, its provisions will bcom lgally binding on thos Partis who hav ratifid it and its opration will b govrnd by th COP srving as th mting of th Partis to th Paris Agrmnt. INDCs wr rqustd by th COP as part of laying th groundswll for th adoption of th Agrmnt. Of th 162 submittd INDCs, p mor than 90 includ proposals for ETSs, carbon taxs and othr carbon pricing initiativs. 16 Partis stating in thir INDCs that thy ar planning or considring th us of domstic or intrnational markt mchanisms q account for 61 prcnt of global GHG missions. Mor spcifically, fiv INDCs mntion th us of domstic markt mchanisms only, rprsnting almost a quartr of th global missions. Also, 96 INDCs stat intntions to us intrnational markt mchanisms only; th Partis that submittd ths INDCs account for about a third of th global missions. Som INDCs also stat that thir pldgd mitigation is dpndnt on th availability of markt mchanisms on a bilatral, rgional or intrnational scal. 17 Carbon pricing is mntiond in paragraph 137 of th COP dcision, which rcogniss th important rol of providing incntivs for mission rduction activitis, including tools such as domstic policis and carbon pricing. Articl 6 of th Paris Agrmnt is particularly rlvant for carbon markts. Articl 6.1 rcognizs that Partis can voluntarily cooprat in th implmntation of thir nationally dtrmind contributions (NDCs) r to allow for highr ambition in mitigation and adaptation actions. Articls 6.2 to 6.7 introduc instancs of such cooprativ approachs. Articls 6.2 6.3 covr cooprativ approachs whr Partis mt thir NDCs by transfrring mitigation outcoms intrnationally. Such transfrs should b voluntary, promot sustainabl dvlopmnt, and nsur nvironmntal intgrity. Thy should also follow accounting principls approvd by th COP to avoid doubl-counting. Th natur of th intrnationally transfrrd mitigation outcoms (ITMOs) has not yt bn dfind. ITMOs might covr outcoms from various xisting and futur markt-basd approachs,.g., Europan Union Allowancs (EUAs), crdits from th Japans Joint Crditing Mchanism, REDD+ crdits, or mitigation outcoms issud from th nw mchanism stablishd undr Articl 6.4. Articls 6.2-6.3 thrby provid a basis for facilitating intrnational rcognition of cross-bordr applications of subnational, national, rgional and intrnational carbon pricing initiativs. Articls 6.4-6.7 stablish a mchanism for countris to contribut to GHG missions mitigation and sustainabl dvlopmnt. This nw mchanism is undr th authority and guidanc of th COP srving as th mting of th Partis to th Paris Agrmnt. It is opn to all countris and th mission rductions can b usd to mt th NDC of ithr th host country or anothr country. Th mchanism is intndd to incntiviz mitigation activitis by both public and privat ntitis. It will go byond offstting, as it aims to dlivr ovrall mitigation through voluntary contributions in a way that is yt to b clarifid. A shar of th procds from activitis undr th nw mchanism will b usd to covr administrativ xpnss. In addition, som of th procds will b disbursd to support th adaptation nds of dvloping countris that ar particularly vulnrabl to th advrs ffcts of climat chang. Th Subsidiary Body for Scintific and Tchnological Advic will work on th ruls, modalitis and procdurs for this mchanism. p Numbr of INDCs submittd as of May 1, 2016. EU-28 countris submittd a joint INDC on March 23, 2015. q Including a Rducing Emissions from Dforstation and Forst Dgradation and sustainabl forst managmnt, consrvation of forsts, and nhancmnt of carbon sinks (REDD+) mchanism. r INDCs vs. NDCs: INDCs ar voluntary statmnts which wr invitd by th COP without prscription rlatd to form. NDCs ar lgally distinct and will b undr th Agrmnt as and whn it ntrs into forc. Thy will b govrnd in th main by Articl 4 of th Agrmnt. Each Party to UNFCCC who wishs to bcom a Party to th Agrmnt will hav an obligation to communicat an NDC. Th lvl of prscription attachd to ths will b dtrmind by th ngotiations of th oprativ lmnts of Articl 4, which mainly tak plac undr th Ad Hoc Working Group on th Paris Agrmnt.

8 Clan Dvlopmnt Mchanism and Joint Implmntation Intrnational dmand for Kyoto crdits Crtifid Emission Rductions (CERs) and Emission Rduction Units (ERUs) is almost xhaustd. Th Europan Union (EU), which was th biggst sourc of dmand historically, has most likly alrady fulfilld its dmand for intrnational crdits. In 2015, EU ETS installations xchangd just undr 23 million CERs for EUAs. This mans that to dat, EU ETS installations hav usd almost 1.5 GtCO 2 of CERs and ERUs of th total 1.6 GtCO 2 allowd. 18 Th rmaining 0.1 GtCO 2 of rsidual dmand is likly to alrady b in th hands of EU ETS installations. No othr substantial sourc of dmand for CERs is availabl. Du to ths conditions, half of th projcts that had issud CERs by th nd of 2012 casd issuanc byond this dat. 19 Th CDM Excutiv Board is invstigating ways to broadn dmand for CERs and participation in th CDM. 20 Som carbon pricing initiativs at th national lvl still provid th possibility of dmand for CERs, such as in Kora, Mxico and South Africa, although th dmand is currntly limitd to domstic CERs. Also, paragraph 107 of th COP 21 dcision ncourags Partis to promot th voluntary cancllation of Kyoto crdits. Additionally, som rsults-basd financ (RBF) initiativs, whr (a part of) th crdits ar not usd by th buyr for complianc purpos, ar additional sourcs of dmand for CERs. Th UNFCCC Scrtariat stimats that th annual dmand from RBF initiativs could amount to around 30 million CERs. 21, s This includs initiativs such as th Norwgian Carbon Procurmnt Facility, and th World Bank s Pilot Auction Facility for Mthan and Climat Chang Mitigation, Carbon Partnrship Facility and Carbon Initiativ for Dvlopmnt. Rsults-basd financ Th us of RBF mchanisms has continud to xpand and dvlop. Th Nitric Acid Climat Action Group was launchd at COP 21 by th Grman Govrnmnt. This initiativ will purchas CERs gnratd from nitric acid missions mitigation projcts until 2020, on th condition that ths projcts will continu mitigation post-2020. Furthrmor, on Novmbr 30, 2015, th World Bank announcd th Transformativ Carbon Asst Facility. Expctd to b oprational in lat 2016, this facility will provid RBF to dvloping countris for th implmntation of larg scal mission rduction programs with a focus on sctoral or policy-lvl programs. Th initial targt funding of US$500 million will support about 10-15 programs, and is xpctd to lvrag ovr US$2 billion of financ. 22 In addition, in March 2016, th Grn Climat Fund Board dcidd to assss th applicability of RBF to sctors supportd by th fund. 23 Aviation sctor At th Assmbly that will tak plac from Sptmbr 27 Octobr 7, 2016, th Intrnational Civil Aviation Organization (ICAO) is xpctd to dcid on a Global Markt-Basd Masur, which is part of th baskt of masurs to achiv carbon-nutral growth post- 2020. 24 If adoptd, th Carbon Offstting Schm for Intrnational Aviation (COSIA) will start in 2021. 25 Th CDM Excutiv Board, among othrs, is working with th ICAO on th dsign of th COSIA. 26 Rgional, national, and subnational carbon pricing updat Carbon pricing has bn implmntd or is schduld to commnc in about 40 national and ovr 20 subnational jurisdictions, as displayd in Figur 1. As illustratd in Figur 3, th rang of prics obsrvd is broad, as ach pric rflcts a diffrnt national or rgional contxt. In 2015, carbon pricing raisd about US$26 billion t in govrnmnt rvnus an incras of US$10 billion, or 60%, compard to 2014. This trnd is attributd to th growth in auction rvnu in California and Québc as a rsult of xpandd GHG covrag, and a substantial tax rat incras in Franc. Dtails on th main dvlopmnts in carbon pricing ovr th past yar ar prsntd blow. u Australia Th Emissions Rduction Fund (ERF) has bn usd sinc April 2015 by th Australian Govrnmnt to purchas mission rduction crdits from approvd, voluntary mission rduction projcts through an auction. 27 To prvnt th ovrall incras in domstic missions, a safguard mchanism will b addd to th ERF from July 1, 2016, stablishing an ETS. Th safguard mchanism rquirs facilitis with annual missions of ovr 100 kilotons CO 2 to limit thir missions s This dos not includ th potntial dmand from th nw Nitric Acid Climat Action Group. t Authors calculations, basd on auction rvnu rports of th diffrnt ETSs, paymnts into Albrta s Climat Chang and Managmnt Fund, and th annual budgt of govrnmnts with carbon taxs in plac. u Countris and rgions ar listd in alphabtical ordr.

9 to thir individual absolut baslin lvls. 28 Facilitis that xcd thir mission baslin lvls can purchas and surrndr Australian mission rduction crdits for complianc. 29 Th Australian govrnmnt intnds to rviw th ERF and safguard mchanism in 2017. 30 Canada Back as a strong playr in th climat spac, carbon pricing is now undr considration on a national lvl in Canada. Th Vancouvr Dclaration on clan growth and climat chang 31 rlasd on March 3, 2016 includs a commitmnt to form svral working groups, on of which will focus on carbon pricing mchanisms. Ths focus groups will mak proposals for a national climat policy framwork in fall 2016. Dvlopmnts on th provincial lvl in Canada includ th ntry into forc of th Grnhous Gas Industrial Rporting and Control Act (GGIRCA) in British Columbia on January 1, 2016. This stablishd an ETS that will covr th LNG facilitis currntly undr construction, onc thy bcom oprational. 32 Facilitis undr th GGIRCA will nd to mt a GHG mission intnsity targt, purchas local offst crdits or pay into a tchnology fund at a rat of CAN$25/tCO 2 (US$19/tCO 2 ). Th facilitis will also b subjct to th British Columbia carbon tax. Albrta is planning to transition to an conomy-wid carbon pricing systm from January 1, 2017, incrasing th ovrall covrag of carbon pricing from 45 prcnt of Albrta s GHG missions to 78 90 prcnt. In 2017, a carbon tax of CAN$20/tCO 2 33 (US$15/tCO 2 ) will apply to facilitis not covrd by th Spcifid Gas Emissions Rgulation (SGER) th currnt carbon pricing initiativ in Albrta. Facilitis undr th SGER that mt thir complianc obligations through contributions to th Climat Chang and Environmntal Managmnt Fund alrady facd this carbon pric from January 1, 2016 onward. 34 Th carbon pric will furthr incras to CAN$30/tCO 2 (US$23/tCO 2 ) for SGER and non-sger facilitis from January 1, 2017 and 2018, rspctivly. Th conomy-wid carbon pric initiativ will b rvnu nutral. Th nw carbon pricing lgislation is xpctd by spring 2016. 35 Manitoba, Ontario, and Québc signd a mmorandum of undrstanding that statd thir intntion to link thir ETSs undr th Wstrn Climat Initiativ. 36 This follows sparat announcmnts from Manitoba 37 and Ontario 38 in 2015 of thir rspctiv plans to introduc ETSs. Ontario publishd its draft ETS lgislation on Fbruary 25, 2016. 39 If it rcivs lgislativ approval, th ETS will b launchd on January 1, 2017, covring 82 prcnt of Ontario s annual GHG missions. 40 Th dsign and scop of th Ontario ETS is similar to th California and Québc Cap-and-Trad Programs. 41 With an xpctd carbon pric of CAN$18/tCO 2 (US$14/tCO 2 ) in th first yar of opration, th Ontario ETS will gnrat about CAN$1.9 billion (US$1.5 billion) in rvnu pr yar. Th rvnu will b invstd in GHG mission rduction programs and nrgy fficincy programs. China On Sptmbr 25, 2015, th Chins Prsidnt announcd that th Chins national ETS will commnc in 2017. 42 To prpar for this launch, th National Dvlopmnt and Rform Commission has rqustd th rporting and vrification of historical GHG data from 2013 to 2015 for th sctors that ar to b includd in th national ETS by Jun 30, 2016. 43 From ths sctors, provincs ar compiling a list of companis with an annual nrgy consumption of mor than 10,000 standard coal quivalnt in any yar ovr 2013 2015 ths companis will b potntial candidats for inclusion in th national ETS. Guangdong 44 and Chongqing 45 hav alrady publishd thir lists. Th svn pilot ETSs ar to b mrgd into th national ETS undr unifid ruls and a dtaild transition plan is undr dvlopmnt. 46 Figur 4. Global covrag and annual valu of carbon pricing initiativs Global covrag of carbon pricing initiativs Just undr US$50 billion Emissions covrd by carbon pricing initiativs Total missions from jurisdictions with carbon pricing initiativs If th Chins national ETS is implmntd Annual valu of implmntd carbon pricing initiativs If th Chins national ETS is implmntd Potntially up to ~US$100 billion Not: th information on th Chins national ETS rprsnts arly unofficial stimats basd on th Chins Prsidnt s announcmnt in Sptmbr 2015.

10 Th pilot ETSs in Bijing, Chongqing, Guangdong, Hubi, Shanghai, Shnzhn and Tianjin hav continud to volv and som hav xpandd ovr th past yar. In th Shanghai ETS pilot, th scop incrasd to covr th shipping sctor, 47 whil th Bijing ETS pilot xpandd to covr th transport sctor as wll as powr and cmnt companis in Chngd, Hbi, and Erdos and Hohhot in Innr Mongolia. 48 Th mandatory participation missions thrshold was lowrd in th Bijing ETS in 2015, from 10,000 tco 2 to 5,000 tco 2. 49 In addition, changs wr mad to th covrag critria in th Hubi pilot ETS. Th ETS covrag critria had bn basd on historical nrgy consumption ovr 2010 2011. Howvr, in 2015, this timfram was xpandd to 2009 2014, lading to th inclusion of an additional 29 companis. 50 Dspit th inclusion of additional companis, th 2015 cap in th Hubi ETS dcrasd from 324 MtCO 2 in th prvious yar to 281 MtCO 2, in lin with thir mitigation ambition. 51 Th China Crtifid Emission Rduction (CCER) schm has continud to grow: as of April 1, 2016, 501 CCER projcts wr rgistrd, and a total of 27 MtCO 2 of crdits wr issud by 100 of ths projcts. 52 Th total transaction volum of CCERs in th pilot ETSs was 36 MtCO 2, with th Shanghai ETS accounting for 71 prcnt of this volum. 53 Th pric of CCERs is dpndnt on th pilot ETS in which it can b usd for complianc, ranging from RMB13/tCO 2 to RMB33/tCO 2 (US$2 5/tCO 2 ). v Th CCER prics ar also influncd by quantitativ limits on CCER usag for complianc purposs, which ar btwn 5 10 prcnt of th annual missions dpnding on th pilot ETS. EU To provid gratr pric stability and prdictability in th EU ETS, th markt stability rsrv was lgislatd in Octobr 2015 and will start shaping th supply of allowancs from January 2019. 54 In addition, in July 2015, th Europan Commission put forward a proposal to rvis th EU ETS post-2020. 55 Th ky changs includ an incras in th annual cap rduction factor from 1.74 to 2.2 prcnt, bttr targtd and updatd ruls for fr allocation of allowancs to sctors at th highst risk of carbon lakag, and th stablishmnt of funds to financ low-carbon innovation in industry and modrnization of th nrgy sctors in lowr-incom mmbr stats. Th proposal dos not includ any provisions for th us of intrnational crdits aftr 2020. Th othr two lgislativ bodis of th EU, th Europan v Th prics ar basd on CCER transaction data on th Shanghai Environmnt and Enrgy Exchang and th Bijing Environmnt Exchang btwn Sptmbr 2015 and March 2016. Othr pilot ETSs rarly disclos CCER prics. Council and Parliamnt, ar currntly discussing th proposal. So far, th proposal has not ld to a significant incras in th EUA pric, du to th prsisting ovrsupply in th EU ETS. Th EUA pric was 5/tCO 2 (US$6/tCO 2 ) on April 1, 2016. Finland In January 2016, th carbon tax rat for light and havy ful oil, coal and natural gas incrasd from 44/tCO 2 (US$50/tCO 2 ) to 54/tCO 2 (US$62/tCO 2 ). Th purpos of th incras is to ncourag th us of biomass and low missions hating fuls, and improv th comptitiv position of pat and natural gas, spcially compard to coal. 56 Franc Th carbon tax in Franc puts a carbon pric on th us of fossil fuls not covrd by th EU ETS, such as in th rsidntial, srvic and transport sctors. Th carbon tax rat incrasd from 14.5/tCO 2 (US$17/tCO 2 ) to 22/tCO 2 (US$25/tCO 2 ) from January 2016, following th trajctory to rach 100/tCO 2 (US$114/tCO 2 ) in 2030. 57 Th govrnmnt also announcd th introduction of a carbon pric floor for th lctricity sctor in Franc. Furthr dtails on th carbon pric floor will b announcd latr this yar. 58 Japan Th scond complianc priod of th linkd Saitama and Tokyo ETSs startd on April 1, 2015. Th mission rduction targt compard to th historical baslin missions lvl for offic buildings and district hating and cooling facilitis in this complianc priod incrasd to 15 and 17 prcnt undr th Saitama and Tokyo ETSs, rspctivly. 59 For othr (industrial) facilitis, th targt incrasd to 13 and 15 prcnt, rspctivly. At th start of th scond complianc priod, trading btwn th Saitama and Tokyo ETSs commncd; as of Fbruary 2016, only about 2,400 tco 2 Saitama crdits had bn purchasd by ntitis undr th Tokyo ETS. 60 Kazakhstan Kazakhstan has suspndd its ETS for two yars starting from January 1, 2016 to addrss th imbalancs in th systm. 61 Ovr this priod, th govrnmnt will rvis th ruls on th issuanc of missions allowancs, fr allocation and th pric stabilization rsrv. Ths nw ruls will also rflct changs to th conomy that hav takn plac sinc th Kazakhstan ETS ruls wr dsignd. During th suspnsion priod, ETS facilitis do not hav a complianc obligation, but thy ar nonthlss rquird to rport thir missions.

11 Mxico Sinc th implmntation of th carbon tax in 2014, th tax has gnratd almost US$1 billion in rvnu. 62 Th xisting carbon tax in combination othr climat initiativs, for xampl, th framwork for a rgistry of national missions and Clan Enrgy Crtificats, ar xpctd to nabl a carbon markt in 2018. Nw Zaland Intrnational trad of Kyoto crdits in th Nw Zaland Emission Unit Rgistr (NZ EUR) casd on Novmbr 18, 2015, 63 aftr Nw Zaland mt its complianc obligation from th first commitmnt priod of th Kyoto Protocol. Any holdrs of Nw Zaland Assignd Amount Units (AAUs) will b providd with an quivalnt numbr Nw Zaland Units. All othr Kyoto units from th first commitmnt priod in th NZ EUR will b canclld in 2016. Th Nw Zaland Govrnmnt is currntly rviwing th ETS, with a focus on th implications of rmoving th on-for-two transitional masur. This masur currntly allows non-forstry ETS facilitis to surrndr on mission allowanc for vry two tons of CO 2 mittd, thrby halving thir complianc obligation. 64 Norway In 2016, th carbon tax rat in Norway rangs btwn NOK29 436/tCO 2 (US$4 53/tCO 2 ), dpnding on th ful and sctor, compard to NOK25 427/tCO 2 (US$3 52/tCO 2 ) in 2015. 65 Th Norwgian Govrnmnt is considring rforms to th currnt carbon taxation systm, which would introduc a singl tax rat of NOK420/tCO 2 (US$51/tCO 2 ) for all non-ets sctors. 66 Rpublic of Kora Sinc th start of th Rpublic of Kora ETS on January 1, 2015, thr hav bn low volums of trad on th allowanc markt. No transactions took plac btwn January 16 and Octobr 6, 2015, and th total transaction volum in 2015 was 0.3 MtCO 2, rprsnting a small shar of th 573 MtCO 2 cap. 67 In 2016, trad rmains limitd as of May 1, 2016 th most rcnt trad took plac on April 18, 2016, at a rcord high of KRW18,450/tCO 2 (US$16/tCO 2 ). Th limitd allowanc trad has ld to high dmand for Koran offst crdits ovr th past yar, including Koran CERs, w which ar also ligibl for complianc undr th ETS. Koran offsts crdits ar now pricd at a similar lvl to Koran allowancs. 68 Slovnia On April 1, 2016, Slovnia brought its carbon tax law in lin with EU ruls by rmoving xmptions on liqufid ptrolum gas and natural gas. 69 A carbon tax rat of 17/tCO 2 (US$20/tCO 2 ) now applis to ths fossil fuls; this rat also applis to othr fossil fuls. South Africa In Novmbr 2015, South Africa publishd a draft Carbon Tax Bill, which announcd a dlayd start dat of January 1, 2017. 70 Undr th draft lgislation, offsts can b usd for complianc and tax xmptions starting from 60 prcnt up to a maximum of 95 prcnt will apply. This mans that th ffctiv tax rat will b btwn R6 48/tCO 2 (US$0.4 3/tCO 2 ), compard to th full tax rat of R120/tCO 2 (US$8/tCO 2 ). Following a public consultation procss, South Africa is currntly rvising th bill. Switzrland On March 23, 2016, Switzrland s Fdral Council approvd th Paris Agrmnt and announcd plans to rvis th Fdral Act on th Rduction of CO 2 Emissions (CO 2 Act). 71 This rvisd CO 2 Act could rsult in an incras in th carbon tax rat from th currnt lvl of CHF84/tCO 2 (US$88/tCO 2 ). A public consultation on th rvision of th CO 2 Act will b hld in summr 2016. Following ight rounds of ngotiations which startd in 2011, Switzrland and th EU compltd ngotiations on January 25, 2016 to link thir ETSs. 72 Th agrmnt nds to b signd and ratifid by both sids bfor it can ntr into forc. Th timlin for this stp is opn. Whn th agrmnt ntrs into forc, Switzrland nds to hav intgratd th aviation sctor into its ETS to b consistnt with th sctoral covrag of th EU ETS. 73 Ukrain Th Ukrainian Govrnmnt publishd a concpt ETS lgislation in Sptmbr 2015. 74 Th lgislation aims to stablish an ETS which is in lin with th EU ETS from 2017, with a goal to join th EU ETS in 2019. Th full lgislation is xpctd by lat 2016. 75 w CERs nd to b cancld bfor thy can b convrtd to Koran offsts.

12 Unitd Stats On a national lvl, th final ruls of th US Environmntal Protction Agncy s Clan Powr Plan (CPP) wr announcd on August 3, 2015. 76 Th CPP aims to rduc missions in th powr sctor by 32 prcnt of 2005 lvls by 2030. Each stat has an individual targt and stats hav th flxibility to choos thir own complianc mchanisms, including missions trading. 77 Following lgal action by som stats, th US Suprm Court suspndd th implmntation of th CPP on Fbruary 9, 2016 pnding a judicial rviw. 78 Nonthlss, som stats continu to support and prpar for th implmntation of th CPP, 79 including California and th RGGI stats. 80 Dvlopmnts on th subnational lvl includ th 2016 program rviw of th Rgional Grnhous Gas Initiativ (RGGI). This rviw is currntly undrway and focuss on post-2020 cap stting, flxibility mchanisms and broadning th RGGI markt. 81 In addition, Nw York on of th RGGI stats is ngaging with othr RGGI stats to invstigat linking RGGI to th linkd California and Québc Cap-and-Trad programs, as wll as th plannd Ontario ETS. 82 Thr has bn mixd progrss on th othr ETSs undr considration in th US. In January 2016, Washington Stat rlasd its draft Clan Air Rul which would stablish an ETS in 2017 covring about 60 prcnt of th stat s GHG missions. 83 Th rul will b updatd by spring 2016, and adoption is xpctd by summr 2016. 84 In Orgon, various bills wr launchd in th past yar to stablish an ETS; howvr, ths bills wr not passd by th lgislatur. x Dspit ths difficultis, Orgon continus to activly considr th implmntation of markt-basd approachs to rduc GHG missions. 85 Corporat carbon pricing updat Corporat carbon pricing is now bcoming a widly usd tool for corporat stratgic invstmnt dcisions, hlping companis shift to lowr-carbon businss modls. In 2015, 435 companis rportd to CDP that thy ar using an intrnal pric on carbon almost a thrfold incras from th prvious yar. 86 An additional 583 companis statd that thy ar planning to implmnt an intrnal carbon pric ovr th cours of 2016 2017. 87 Of th companis that hav publicly disclosd that thy ar using an intrnal pric on carbon, 94 prcnt ar locatd in countris whr mandatory carbon pricing is in plac, schduld for implmntation or undr considration at a national or subnational lvl. Th rportd corporat carbon prics in us ar divrs, ranging from US$1/tCO 2 to US$357/tCO 2. This rang is broadr than th mandatory carbon pric rang, indicating that som companis ar moving byond th us of intrnal carbon pricing as a stratgic risk managmnt tool to valuat th potntial impact of carbon pricing initiativs on thir oprations. Ths companis ar also using it to xplor cost savings and rvnu opportunitis through innovation. Th UNGC has calld for businsss to adopt an intrnal carbon pric of at last US$100/tCO 2 by 2020, which will b ndd to kp GHG missions consistnt with a 1.5 2 C pathway. 88 In 2015, six companis disclosd intrnal carbon pricing lvls that ar consistnt with this rcommndation. Togthr with th CPLC, 89 othr initiativs hav providd substantial tchnical information, allowing govrnmnt and businsss ladrs to tak informd dcisions on policy dsign and implmntation. Th Partnrship for Markt Radinss provids support to prpar and implmnt climat chang mitigation policis including carbon pricing initiativs in ordr to scal up GHG mitigation. 90 Th World Bank s Ntworkd Carbon Markts is xploring how a futur intrnational carbon markt could accommodat a patchwork of diffrnt, domstic climat actions. 91 Through th Caring for Climat initiativ s Businss Ladrship Critria on Carbon Pricing, companis ar also dmonstrating thir commitmnt to ladrship on corporat carbon pricing. 92 As of Fbruary 2016, 67 companis hav committd to align with th critria: stting a matrial intrnal carbon pric, showing public support for carbon pricing and communication on ths activitis. In addition, institutional invstors ar activly ngaging with govrnmnts on th risks of wak climat policy and th nd for a carbon pric through th Global Invstor Statmnt on Climat Chang. 93 As of Dcmbr 2015, 409 institutional invstors rprsnting ovr US$24 trillion in assts had signd th statmnt. Signatoris to th statmnt commit to ngag with govrnmnts to support climat financ, assss low-carbon invstmnt opportunitis, and build capacity to assss thir climat risks and opportunitis. Thy will also work with th companis in which thy invst to minimiz climat risks. x Btwn January 2015 and April 2016, bills to introduc carbon pricing hav bn proposd to both th Hous (HB3176, HB3250, HB3252, HB3470) and th Snat (SB965 and SB1574-A) of Orgon.

13 Rfrncs 1 Sourc: UNFCCC, Historic Paris Agrmnt on Climat Chang - 195 Nations St Path to Kp Tmpratur Ris Wll Blow 2 Dgrs Clsius, Dcmbr 12, 2015, http://nwsroom.unfccc.int/unfcccnwsroom/final-cop21/. 2 Sourc: UNFCCC, Opning for Signatur and High-Lvl Signatur Crmony Convnd by th UN Scrtary-Gnral, April 22, 2016, http://unfccc.int/paris_agrmnt/itms/9511.php. 3 Sourc: NOAA National Cntrs for Environmntal Information, Stat of th Climat: Global Analysis for Annual 2015, n.d., accssd April 6, 2015. 4 Sourc: UNFCCC, Synthsis Rport on th Aggrgat Effct of th Intndd Nationally Dtrmind Contributions, Octobr 30, 2015. 5 Sourc: World Bank, Ladrs Unit in Calling for a Pric on Carbon Ahad of Paris Climat Talks, Octobr 19, 2015, http://www.worldbank. org/n/nws/prss-rlas/2015/10/19/ladrs-unit-in-calling-for-apric-on-carbon-ahad-of-paris-climat-talks. 6 Sourc: Carbon Pricing Ladrship, Hompag, accssd May 5, 2016, http://www.carbonpricingladrship.org/. 7 Sourc: Fdral Ministry for th Environmnt, Natur Consrvation, Building and Nuclar Safty, G7 Opns Carbon Markt Platform to Countris Worldwid, Dcmbr 2015. 8 Sourc: Ministry for th Environmnt, Ministrial Dclaration on Carbon Markts, Dcmbr 12, 2015. 9 Sourc: National Dvlopmnt and Rform Commission, China Starts th National Carbon Emissions Trading Systm in 2017, Sptmbr 26, 2015, http://qhs.ndrc.gov.cn/qjfzjz/201509/t20150930_753474.html. 10 Ibid. 11 Sourc: CDP, Putting a Pric on Risk: Carbon Pricing in th Corporat World, January 28, 2016. 12 Sourc: Unitd Nations Global Compact, UN Global Compact Calls on Companis to St $100 Minimum Intrnal Pric on Carbon, April 22, 2016, https://www.unglobalcompact.org/nws/3381-04-22-2016. 13 Sourc: CDP, Putting a Pric on Risk: Carbon Pricing in th Corporat World, Sptmbr 2015. 14 Sourc: World Bank, Ladrs St Landmark Global Goals for Pricing Carbon Pollution, April 12, 2016, http://www.worldbank.org/n/nws/ prss-rlas/2016/04/21/ladrs-st-landmark-global-goals-forpricing-carbon-pollution. 15 Sourc: UNFCCC, Paris Agrmnt - Status of Ratification, accssd May 6, 2016, http://unfccc.int/paris_agrmnt/itms/9444.php. 16 Sourc: World Bank, Carbon Pricing: It s on th Mov, Novmbr 30, 2015, http://www.worldbank.org/n/nws/fatur/2015/11/30/carbonpricing-its-on-th-mov. 17 Sourc: UNFCCC, Synthsis Rport on th Aggrgat Effct of th Intndd Nationally Dtrmind Contributions, Octobr 30, 2015. 18 Sourc: Europan Commission, Updatd Information on Exchang and Intrnational Crdit Us in th EU ETS, May 2, 2016, http:// c.uropa.u/clima/nws/articls/nws_2016050201_n.htm. 19 Sourc: UNFCCC, Annual Rport of th Excutiv Board of th Clan Dvlopmnt Mchanism to th Confrnc of th Partis Srving as th Mting of th Partis to th Kyoto Protocol, Novmbr 12, 2015. 20 Sourc: UNFCCC, Options for Using th Clan Dvlopmnt Mchanism as a Tool for Othr Uss, Fbruary 22, 2016. 21 Sourc: Ibid. 22 Sourc: World Bank, Carbon Pricing: It s on th Mov, Novmbr 30, 2015, http://www.worldbank.org/n/nws/fatur/2015/11/30/carbonpricing-its-on-th-mov. 23 Sourc: Grn Climat Fund, Dcisions of th Board Twlfth Mting of th Board, March 29, 2016. 24 Sourc: ICAO, Markt-Basd Masurs, accssd April 6, 2016, http://www.icao.int/nvironmntal-protction/pags/markt-basdmasurs.aspx. 25 Sourc: ICAO, Draft Assmbly Rsolution Txt on a Global Markt- Basd Masur Schm, March 11, 2016. 26 Sourc: UNFCCC, Annual Rport of th Excutiv Board of th Clan Dvlopmnt Mchanism to th Confrnc of th Partis Srving as th Mting of th Partis to th Kyoto Protocol, Novmbr 12, 2015. 27 Sourc: Australian Govrnmnt Clan Enrgy Rgulator, About th Emissions Rduction Fund, Fbruary 15, 2016, http://www. clannrgyrgulator.gov.au/erf/about-th-emissions-rduction-fund. 28 Sourc: Australian Govrnmnt Clan Enrgy Rgulator, Th Safguard Mchanism, January 13, 2016, http://www. clannrgyrgulator.gov.au/erf/about-th-emissions-rduction- Fund/th-safguard-mchanism. 29 Sourc: Ibid. 30 Sourc: Australian Govrnmnt Clan Enrgy Rgulator, Th Safguard Mchanism - Ovrviw, April 6, 2016, http://www. nvironmnt.gov.au/climat-chang/missions-rduction-fund/ publications/factsht-rf-safguard-mchanism. 31 Sourc: Canadian Intrgovrnmntal Confrnc Scrtariat, Vancouvr Dclaration on Clan Growth and Climat Chang, March 3, 2016. 32 Sourc: Govrnmnt of British Columbia, Explor B.C. s LNG Projcts, accssd April 5, 2016, https://ngag.gov.bc.ca/lnginbc/ lng-projcts/. 33 Sourc: Albrta Govrnmnt, Carbon Pricing, accssd April 5, 2016, http://www.albrta.ca/climat-carbon-pricing.cfm. 34 Sourc: Albrta Govrnmnt, Climat Chang and Emissions Managmnt Act: Spcifid Gas Emittrs Rgulation, Dcmbr 23, 2015. 35 Sourc: Albrta Govrnmnt, Fiscal Plan 2016-19, April 14, 2016. 36 Sourc: Manitoba Govrnmnt, Mmorandum of Undrstanding Concrning Concrtd Climat Chang Actions and Markt-Basd Mchanisms, Dcmbr 7, 2015. 37 Sourc: Manitoba Govrnmnt, Manitoba Introducs Comprhnsiv Plan to Addrss Climat Chang, Crat Grn Jobs, Dcmbr 3, 2015, http://nws.gov.mb.ca/nws/indx.html?itm=36950. 38 Sourc: Ontario Ministry of th Environmnt and Climat Chang, Cap and Trad Systm to Limit Grnhous Gas Pollution in Ontario, April 13, 2015, https://nws.ontario.ca/opo/n/2015/04/cap-and-tradsystm-to-limit-grnhous-gas-pollution-in-ontario.html. 39 Sourc: Ontario Ministry of th Environmnt and Climat Chang, Ontario Posts Cap and Trad Rgulation, Fbruary 25, 2016, https:// nws.ontario.ca/n/n/2016/02/ontario-posts-cap-and-tradrgulation.html. 40 Sourc: Ontario Ministry of Financ, Jobs for Today and Tomorrow: 2016 Ontario Budgt, Fbruary 23, 2016. 41 Sourc: Govrnmnt of Ontario, Ontario s Climat Chang Stratgy, Dcmbr 18, 2015. 42 Sourc: National Dvlopmnt and Rform Commission, China Starts th National Carbon Emissions Trading Systm in 2017, Sptmbr 26, 2015, http://qhs.ndrc.gov.cn/qjfzjz/201509/t20150930_753474.html. 43 Sourc: National Dvlopmnt and Rform Commission, Notic on th Focus Work for Ralising a Wll-Oprating National Emissions Trading Systm, January 11, 2016, http://qhs.ndrc.gov.cn/ qjfzjz/201601/t20160122_791850.html. 44 Sourc: IdaCarbon, Guangdong Will Hav 266 Companis in China s Domstic Carbon Markt, March 15, 2016, www.idacarbon. org/archivs/31368. 45 Sourc: Chongqing Dvlopmnt and Rform Commission, Chongqing Municipal Dvlopmnt and Rform Commission Rspond to th Offr to B Includd in th List of Entrpriss in th Domstic Emissions Trading Markt, Fbruary 22, 2016, http://www.cqdpc.gov. cn/articl-1-22585.aspx.

14 46 Sourc: IdaCarbon, Guangdong Will Hav 266 Companis in China s Domstic Carbon Markt, March 15, 2016, www.idacarbon. org/archivs/31368. 47 Sourc: Shanghai Municipal Dvlopmnt and Rform Commission, On th Issuanc of th Shanghai Carbon Emissions Units, Fbruary 22, 2016, http://www.shdrc.gov.cn/gk/xxgkml/zcwj/zgjjl/23039.htm. 48 Sourc: Bijing Municipal Commission of Dvlopmnt and Rform, Bijing, Innr Mongolia, Hohhot and Ordos Conduct Intr-Rgional Coopration in th Trad of Carbon Emissions, March 24, 2016, http:// www.bjpc.gov.cn/zwxx/tztg/201603/t10058058.htm. 49 Sourc: Ibid. 50 Sourc: Hubi Provincial Dvlopmnt and Rform Commission, Th Provincial Dvlopmnt and Rform Commission on th Issuanc of Carbon Emission Units and Allocation Plan of Hubi Provinc, Novmbr 25, 2015. 51 Sourc: Ibid. 52 Sourc: National Dvlopmnt and Rform Commission, China Crtifid Emission Rduction Exchang Info-Platform, accssd April 5, 2016, http://cdm.ccchina.gov.cn/ccr.aspx. 53 Sourc: Shanghai Environmnt and Enrgy Exchang, Hompag, accssd April 5, 2016, http://www.cnx.com/. 54 Sourc: Europan Commission, Structural Rform of th Europan Carbon Markt, accssd April 5, 2016, http://c.uropa.u/clima/ policis/ts/rform/indx_n.htm. 55 Sourc: Europan Commission, Amnding Dirctiv 2003/87/EC to Enhanc Cost-Effctiv Emission Rductions and Low-Carbon Invstmnts, July 15, 2015. 56 Sourc: Finlx Data Bank, Govrnmnt Proposal to Parliamnt to Amnd th Lgislation on th Taxation of Enrgy, Sptmbr 28, 2015. 57 Sourc: Frnch Ministry of th Environmnt, Enrgy and th Sa, Th Taxation of Enrgy Products Applicabl in 2016, Fbruary 16, 2016, http://www.dvloppmnt-durabl.gouv.fr/la-fiscalit-dsproduits,11221.html. 58 Sourc: Frnch Ministry of Forign Affairs and Intrnational Dvlopmnt, Official Statmnts on Forign Policy on May 6, 2016, April 25, 2016, http://basdoc.diplomati.gouv.fr/vus/kiosqu/ FrancDiplomati/kiosqu.php?typ=bafr. 59 Sourc: Tokyo Mtropolitan Govrnmnt Burau of Environmnt, Grnhous Gas Emissions Rduction Commitmnts and Emissions Trading Schm, May 30, 2014. 60 Sourc: Tokyo Mtropolitan Govrnmnt Burau of Environmnt, Emissions Trading Data, Fbruary 2016. 61 Sourc: Ministry of Enrgy of th Rpublic of Kazakhstan, Prss Rlas on th Improvmnt of th Ecological Lgislation of th Rpublic of Kazakhstan, March 10, 2016, http://nrgo.gov.kz/indx. php?id=5181. 62 Sourc: Ministr of Environmnt Rafal Pacchiano Alamán, CPLC High-Lvl Assmbly Inaugural Mting, April 15, 2016. 63 Sourc: Govrnmnt of Nw Zaland, Emissions Unit Rgistr, accssd April 5, 2016, http://www.ur.govt.nz/. 64 Sourc: Nw Zaland Ministry for th Environmnt, Nw Zaland Emissions Trading Schm Rviw 2015/16, Novmbr 2015. 65 Sourc: Norwgian Dpartmnt of Financ, Taxs, Fs and Customs in 2016, Sptmbr 25, 2015. 66 Sourc: Govrnmnt of Norway, Pricing th Environmnt, Dcmbr 9, 2015. 67 Sourc: Kora Exchang, Daily / Closing Pric, accssd April 28, 2016, http://global.krx.co.kr/contnts/glb/05/0506/0506030102/ GLB0506030102.jsp. 68 Sourc: Ibid. 69 Sourc: Govrnmnt of Slovnia, Environmntal Tax Rgulation on Air Pollution Causd by th Emission of Carbon Dioxid, March 25, 2016. 70 Sourc: Govrnmnt of South Africa, Draft Carbon Tax Bill, Novmbr 2, 2015. 71 Sourc: Swiss Fdral Offic of th Environmnt, Climat Chang: Bundsrat Approvs Paris Agrmnt and Dfins Futur Bnchmarks, March 23, 2016, http://www.bafu.admin.ch/klima/03449/12696/indx. html?lang=d&msg-id=61096. 72 Sourc: Swiss Fdral Offic of th Environmnt, Linking of th Emission Trading Systms of Switzrland and th EU: Ngotiation Procss, January 25, 2016, http://www.bafu.admin.ch/ klima/13877/14510/14882/14883/indx.html?lang=n. 73 Sourc: Swiss Fdral Offic of th Environmnt, Linking th Swiss and EU Emissions Trading Schms, January 25, 2016, http://www. bafu.admin.ch/klima/13877/14510/14882/indx.html?lang=n. 74 Sourc: Ukrainian Ministry of Ecology and Natural Rsourcs of Ukrain, Concpt Implmntation in Ukrain: Prmission of a Trading Systm Unit for Grnhous Gas Emissions undr Dirctiv 2003/87/ EC, Sptmbr 14, 2015. 75 Sourc: National Accrditation Agncy of Ukrain, Implmntation of ISO Standard 14065: 2015, April 6, 2016, http://naau.org.ua/ vprovadzhnnya-standartu-dstu-iso-14065-2015/. 76 Sourc: Unitd Stats Environmntal Protction Agncy, Ovrviw of th Clan Powr Plan, August 6, 2015. 77 Sourc: Environmntal Protction Agncy, Carbon Pollution Emission Guidlins for Existing Stationary Sourcs: Elctric Utility Gnrating Units; Final Rul, Octobr 23, 2016. 78 Sourc: Stat of Wst Virginia, Proposd EPA Ruls for Nw and Existing Coal-Fird Powr Plants, accssd April 4, 2016, http://www. ago.wv.gov/publicrsourcs/pa/pags/dfault.aspx. 79 Sourc: Attorny Gnral of Nw York, Joint Statmnt By A.G. Schnidrman, Stats, Citis And Countis In Rspons To Tmporary Stay Of Clan Powr Plan, Fbruary 10, 2016, http://www.ag.ny.gov/ prss-rlas/joint-statmnt-ag-schnidrman-stats-citis-andcountis-rspons-tmporary-stay. 80 Sourc: California Environmntal Protction Agncy Air Rsourcs Board, Amndmnts to Mandatory Rporting and Cap-and-Trad Rgulations, Fbruary 26, 2016. 81 Sourc: RGGI, Ky Itms for 2016 Program Rviw Stakholdr Discussions: Program Elmnts and EPA Clan Powr Plan (CPP), Novmbr 17, 2015. 82 Sourc: Nw York Stat, Govrnor Cuomo, Joind By Vic Prsidnt Gor, Announcs Nw Actions to Rduc Grnhous Gas Emissions and Lad Nation on Climat Chang, Dcmbr 14, 2015. 83 Sourc: Stat of Washington Dpartmnt of Ecology, Ecology Rlass Draft Rul to Cap Carbon Pollution, January 6, 2016, http:// www.cy.wa.gov/nws/2016/002.html. 84 Sourc: Stat of Washington Dpartmnt of Ecology, Public Input Spurs Updats to Clan Air Rul, Ecology to Incorporat Fdback into Nw Draft Rul, Fbruary 26, 2016, http://www.cy.wa.gov/ nws/2016/026.html. 85 Sourc: Stat of Orgon, Snat Bill 5701, Fbruary 25, 2016. 86 Sourc: CDP, Putting a Pric on Risk: Carbon Pricing in th Corporat World, January 28, 2016. 87 Sourc: Ibid. 88 Sourc: Unitd Nations Global Compact, UN Global Compact Calls on Companis to St $100 Minimum Intrnal Pric on Carbon, April 22, 2016, https://www.unglobalcompact.org/nws/3381-04-22-2016. 89 Sourc: Carbon Pricing Ladrship, Ladrship Coalition, accssd April 7, 2016, http://www.carbonpricingladrship.org/ladrshipcoalition/. For additional information about th CPLC, plas rfr to th sssion At a Glanc. 90 Sourc: Partnrship for Markt Radinss, Supporting Action for Climat Chang Mitigation, March 23, 2016, https://www.thpmr.org/ contnt/supporting-action-climat-chang-mitigation. 91 Sourc: World Bank, Ntworkd Carbon Markts, Novmbr 11, 2015. 92 Sourc: Caring for Climat, Carbon Pricing, accssd April 7, 2016, http://caringforclimat.org/workstrams/carbon-pricing/. 93 Sourc: Invstor Platform for Climat Actions, Invstor Actions, accssd April 7, 2016, http://invstorsonclimatchang.org/.