International Carbon Action Partnership

The International Carbon Action Partnership (ICAP) was founded on October 29, 2007, by a group of 15 governments in Lisbon, Portugal. ICAP is an international cooperation forum between states and substate regions aiming to link regional Emission Trading Schemes (ETS). ICAP is used as an open platform exchanging experiences and linking possibilities in specific linking topics like MRV, carbon offsets or Carbon-Leakage. It is a group of countries and regions that support carbon trading and are actively developing or have developed cap-and-trade systems. ICAP facilitates the linking of established and emerging cap-and-trade programs by promoting consistent regulatory frameworks across national borders. [1]

Contents

History

The International Carbon Action Partnership (ICAP) was founded on October 29, 2007. Leaders of more than 15 governments met in Lisbon, Portugal to launch the establishment of the International Carbon Action Partnership (ICAP). ICAP is made up of countries and regions that have implemented or are actively pursuing the implementation of emission trading systems (ETS). ICAP includes members from the European Union and the European Emission Trading Scheme (EU ETS), Western Climate Initiative (WCI), Regional Greenhouse Gas Initiative (RGGI), and Australia, New Zealand and Norway. Japan and Ukraine are observers.[2]

The Californian Governor Arnold Schwarzenegger declared during the founding:

“This first of its kind partnership will provide more incentives for clean-tech investment and economic growth while not letting polluters off the hook. And it will help renew the health of our planet."[3]

Many governments across the world have established or are developing cap-and-trade for greenhouse gas emissions (carbon markets). They include the European Union's trading system (EU ETS), the Norwegian trading programme, the New Zealand trading system (NZ ETS), the Regional Greenhouse Gas Initiative (RGGI) in the eastern region of the United States of America (USA), and the Western Climate Initiative (WCI), which includes western states from the USA and Canadian provinces.[4] There is growing interest in other regions of the world in using carbon markets as a cost-efficient mechanism to reduce greenhouse gas emissions, among others Japan, Mexico and the United States. Development and implementation of carbon markets requires cooperation, and further consideration of how the various markets can facilitate the transition to a global low-carbon economy. The partnership provides a forum to share experiences and knowledge. Sharing and evaluating best practices will help ICAP members determine the extent to which their respective programs can be supported by, and or benefit from, the ICAP process.

ICAP was formed to contribute to the establishment of a well-functioning global cap and trade carbon market. ICAP provides the opportunity for member countries and regions to share best practices and learn from each other's experiences. Linking current and emerging carbon markets at a global level establishes a level playing field for covered sectors and a consistent regulatory framework across national borders. Through this sharing, ICAP enhances the design of other market-based schemes by ensuring compatibility of design issues at an early stage. As a result, ICAP provides a forum to ensure capability of existing and emerging programs and enhances the promise for development of future linked carbon markets.

To coordinate carbon market regulation an international clearinghouse should be installed. The International Carbon Action Partnership ICAP has already started preparing the linking of trading systems and could serve as a future regulatory body.[5]

General objectives:

1. Sharing best practice and learning from each others' experiences

2. Ensuring that design compatibility issues are recognized at an early stage

3. Facilitating future linking of trading programs.[6]

Structure

ICAP is an open forum of governments and public authorities working on carbon markets through cap and trade systems. While all members and observers meet in person two times a year, the day to day work is carried out by the ICAP Steering Committee, supported by a Project Manager who is based in Berlin, Germany. The Project Manager is supervised by the Chair of the ICAP Steering Committee. British Columbia has been elected as Chair for 2009. To coordinate carbon market regulation an international clearinghouse should be installed. The International Carbon Action Partnership ICAP, founded in October 2007, has already started preparing the linking of trading systems and could serve as a future regulatory body.[7]

Actual members of ICAP

European Union Members

• Denmark • European Commission • France • Germany • Greece • Ireland • Italy • Netherlands • Portugal • Spain • United Kingdom

Regional Greenhouse Gas Initiative Members (RGGI)

• Maine • Maryland • Massachusetts • New Jersey • New York

Western Climate Initiative Members (WCI)

• Arizona • British Columbia • California • Manitoba • New Mexico • Ontario • Oregon • Québec • Washington

Other Members

• Australia • New Zealand • Norway • Tokyo Metropolitan Government

Observers

• Japan • Ukraine

See also

http://www.pik-potsdam.de/members/edenh/

http://www.icapcarbonaction.com

http://www.rggi.org/home

http://www.westernclimateinitiative.org/

References

  1. ^ http://www.ene.gov.on.ca/en/news/2009/060302.php
  2. ^ http://icapcarbonaction.com
  3. ^ http://gov.ca.gov/press-release/7958/
  4. ^ http://www.ene.gov.on.ca/en/news/2009/060302.php
  5. ^ http://www.pik-potsdam.de/news/in-short/archive/2008/international-emissions-trading-needs-harmonization/?searchterm=ICAP
  6. ^ http://www.icapcarbonaction.com/index.php?option=com_content&view=article&id=75&Itemid=99&lang=en
  7. ^ http://www.icapcarbonaction.com/index.php?option=com_content&view=article&id=74&Itemid=98&lang=en/