The creation of a global carbon market: A taxonomy of carbon pricing under Article 6
In this Oxford Institute for Energy Studies podcast, Hasan Muslemani talks to Hannah Hauman, Global Head of Carbon Trading at Trafigura, who is lead author on their latest publication entitled ‘The creation of a global carbon market: A taxonomy of carbon pricing under Article 6’.
They discuss key pillars of carbon markets including different forms of carbon pricing mechanisms, the various buyers in carbon markets, and what determines the specification of a given carbon pricing mechanism, including sectors covered under its umbrella, natural ecosystems which exist within its jurisdiction, and the target carbon price, amongst other factors. The podcast also covers different types of carbon units, discussing their core specifications and how they differ in scale and cost. Hannah concludes that while Article 6 of the Paris Agreement may add to stratification in carbon markets, it forms a solid foundation from which voluntary and regulated carbon markets can look to and import from.
Read the Insight paper here.