1. Convention Dialogue, Thursday 16 November The EU’s Perspective on the Market Based Opportunities Peter Carl European Union

2. Convention Dialogue, Thursday 16 November This Presentation l Scale of the challenge l Experience so far l Potential of market based opportunities Exploring ideas

3. Convention Dialogue, Thursday 16 November The Global Challenge l Aspiration: Reduce global emissions by more than 50% of currents levels by around 2050 l A realistic aspiration: technologies exist l Investment gap

4. Convention Dialogue, Thursday 16 November Growing Experience l Range of market based approaches, eg: m CDM, JI m Targets and policies for renewable electricity: China, EU m Transport: biofuels in Brazil, India, China, US and EU; CNG in India m Greenhouse gas emissions trading: EU, Norway, sub-national

5. Convention Dialogue, Thursday 16 November Potential of market based opportunities l Wide benefits from putting a value on emissions reductions: m Sustainable economic growth m Help shift to a low carbon economy m Cost-effective emissions reductions m Stimulates innovation m New business opportunities m Mobilises private sector investment m New employment

6. Convention Dialogue, Thursday 16 November Potential of market based opportunities l But also co-benefits. Some examples: m Morocco rural electrification- health, education and economic development m China’s fuel efficiency standards for cars: emission reductions, energy security and job creation in high- tech manufacturing m India’s promotion of the wind sector: booming local manufacturing and high quality jobs m Brazil’s Biofuels: External debt reduced by US $100 bn m South Africa carbon finance for better and low greenhouse gas housing for low income communities

7. Convention Dialogue, Thursday 16 November Potential of market based opportunities  We know what the scale of the challenge is  We already have experience with market based opportunities  Market-based opportunities increase our potential to meet the challenge The key question is how

8. Convention Dialogue, Thursday 16 November Making use of the creative space l Build on existing ideas and explore new approaches, for example: m Policy / sectoral CDM m Pilot trading schemes at state and regional level and linking m No-lose targets m Sectoral approaches

9. Convention Dialogue, Thursday 16 November To conclude l A stable long-term international framework taking into account different national circumstances and different policy mixes l An effective global carbon market and a clear global carbon price are important to meet our challenge.

10. Convention Dialogue, Thursday 16 November http://europa.eu.int/ comm/environment/ climat/home_en.htm