Global Action on Carbon Markets Outlined at World Bank Meeting in Sydney

China, Chile, Costa Rica and Mexico have outlined their plans to consider domestic carbon pricing at World Bank meetings hosted and co-chaired by Australia in Sydney this week.

China, Chile, Costa Rica and Mexico have outlined their plans to consider domestic carbon pricing at World Bank meetings hosted and co-chaired by Australia in Sydney this week.

"China, Chile, Costa Rica and Mexico are among the 90 countries representing 90 per cent of the global economy that have introduced policies to reduce their carbon pollution and are achieving reductions," said Mark Dreyfus, Parliamentary Secretary for Climate Change and Energy Efficiency.

"China has already embarked on pilot emissions trading schemes in seven cities and provinces covering 250 million people, representing the world's second largest emissions trading scheme. China intends expanding this to a national scheme after 2015."

Also presented at the meeting were:

  • Costa Rica's plan to support its pledge to become carbon neutral by 2021
  • Mexico's plan which focuses on reducing carbon pollution from urban transport, new housing and domestic refrigeration
  • Chile's plan which proposes to explore an emissions trading scheme, potentially complemented by a crediting mechanism

The development and implementation of these plans will inform work underway by other countries including Brazil, Indonesia, South Africa, Thailand and Vietnam.

Other countries have also made significant carbon pricing announcements this year, including:

  • the Republic of Korea which passed legislation to introduce a national emissions trading scheme from 2015
  • Norway which has announced a doubling of its carbon tax on oil and gas in 2013
  • Thailand which has announced its plan to introduce a voluntary domestic carbon market in 2014

Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC), Ms Christiana Figueres, also addressed the World Bank meetings and congratulated countries on their plans.

"Climate change is happening and the world is doing something about it. For the first time, all governments have agreed to negotiate a legally-based agreement by 2015 to be implemented in from 2020," said Ms Figueres.

"The domestic plans for market mechanisms under are a very welcome addition to the carbon schemes already operating in countries and regions, like those in the EU, Australia and California.

"The UNFCCC encourages the growth and integration of carbon schemes around the world because they cut carbon emissions and support sustainable development," she said.

"Linking carbon markets in our region and beyond will provide Australian business with access to a broader range of credible, low cost abatement opportunities," Mr Dreyfus said.

"They will incentivise trade and investment, and provide opportunities for Australia's financial services sector."

During her visit to Australia, Ms Figueres will meet with senior Australian Government officials and leaders from the business, academic and NGO community to share her perspectives on global climate change action, in particular recent progress towards a new global agreement and the role that Australia can play in that process to 2015.