Z/Yen FS俱乐部混音器：“从排放到利润：优化碳交易以取得成功”

Bank of China c.6pm, Wednesday 23rdOctoberThe Rt Hon The Lord Mayor of LondonAlderman Professor Michael Mainelli Ladies and Gentlemen. Good eveningand welcome to Z/Yen’sFS Clubautumn mixeron the topic of ‘Emissions To Profits: Optimising Carbon TradingFor Success.’ Thank you to the home team at Z/Yen for organising thisevening’sevent... Wenjian Fang andBank of China for hosting us... And thankyoufor attendingthis therapy session on carbonmarkets. “Why did the carbonatomgo to therapy? It had too many‘bonding’ issues!” All of us here know the existential threat posed by climatechange-one that left unaddressed will not only impacteveryday life for each of us, but how we do business too.Despite efforts from the first COP gathering, held in 1995 inBerlin, annual global greenhouse gas emissions continue to rise and, though they may have stabilised on a per capita basis,show little sign of falling soon. Analysis by the Green Finance Institute has found that a furtherdeterioration of the UK’s naturalenvironment could lead to a12% loss to GDP; a figure made more shocking when youconsider that the 2008 financial crisis took around 5% off UKGDP. What’s more, as Dr Kevin Parker and I noted in a paper earlierthis year for the Royal Society of Chemistry…titled, “Whathappens if we burn all the carbon?”…while coal use is declining,38% of global electricity and over 40% of global CO₂ emissionscontinue to come from coal-the most carbon intensive fuel. Our estimates show that “proven reserves” of fossil fuels in2022 would generate an estimated 4777 Gt of CO₂, enough tobust carbon budgets, including IPCC RCP2.6, RCP4.5, and RCP6.0-climate scenarios that give broad estimates of theprobabilities of temperature outcomes. In the face of such a monumental uphill struggle, it’s all tooeasy to feel defeated. But climate change is both investable and solvable. Asfinancialservices leaders, we havean opportunity to presenta refreshed, united front on the way to use the totality of globalfinance to stop greenhouse gas emissions.To take the C out ofESG–and I can spell ESG–and put the C even more back intomarkets.Tonight, I want to talk about two aspects of this: •makingemission trading schememarkets workbetter;•making the sequestrations markets work at all. Background The Montreal Protocol banned the production ofchlorofluorocarbons (CFCs) in 2010. In 1992, the US Environmental Protection Agency took adifferent approach to acid rain. The EPA introduced a marketfor SOX and NOX emissions, expecting a 25% reduction over tenyears. In the event, they had a 50% reduction in four years, by1996. Clearly, markets could work for carbon, another global gas. Theultimate objective of the United Nations FrameworkConventionon Climate Change,as stated in 1992,is“stabilizationof greenhouse gas concentrations in theatmosphereat a level that would prevent dangerous anthropogenic[i.e.,human-caused]interference with theclimate system”. Reducingglobal greenhouse gas emissions requires acombination of economic and social mechanisms that drivesustainable practices and promote the transition to a low-carboneconomy, such as: 1.Carbon Pricing2.Renewable Energy Incentives3.Energy Efficiency Programs4.Sustainable Transportation5.Sustainable Land Use Practices6.Research and Development7.Public Awareness and Education8....and International Cooperation. Mechanisms one to eight are all moving ahead, yet reportsconclude that the scale of finance is still paltry...with only about16% of climate finance needs currently being met. Policy stability, long-term planning, and consistent commitmentfrom governments, businesses, and individuals are crucial–atlast year’s mixerwe spoke of the success of the sovereignsustainability linked bonds in Chile and Uruguay. Last Thursday,VanessaHavard-Williams released her Transition FinanceMarketReview–the first time a major UK report hasrecommended sovereign sustainability linked bonds since Z/Yenfirst proposed them 18 years ago. Still, to achieve net zero, public and private sector entitiesneedmarkets for emissions and sequestration to work alongsidegovernment financial commitments. Back To CarbonMarkets The City Corporationhas been at Rio and every COP–as LordMayor I was at COP28 in Dubai. The third COPtook place in Japan in 1997. The primary outcomeof COP3 was the adoption of the Kyoto Protocol, an internationaltreatyaimed at reducing greenhouse gas emissions andcombating climate change. The big decision wasEmissions Trading: Countries couldengagein emissions trading schemes (ETSs), allowing them to buy andsell emissions allowances to meet their targets. This mechanismaimed to create a market for emission reductions and promotecost-effective solutions. The City Corporationwas a founder member of the UK EmissionsTrading Group, which played an important role in laying thefoundations upon which the UK, and then EU, emission tradingschemes were built. Credible ETSs now cover 24%of global emissions,andeverywhe