1. A new paradigm: establishing a global carbon market as element for the foundation of a ‘low carbon Bretton Woods’ system Dr. Michele Stua

2. Current situation  Deadline December 2015  Urgency for an agreement shared by the majority of the parties  Consistency of the agreement  Persistent problems

3. Vested interests  Conservative groups  Reformist groups  Socio-environmental movements  (Geo)political interests

4. Ideological lock-ins  Not directly linked to negotiations  Common but differentiated responsibilities  Common responsibilities and individual duties  Common rights and individual benefits

5. Scope of the proposal  Setting up of a global emissions reduction target (common responsibilities)  Distributing emissions targets between the parties (individual duties)  Organising an international institution to certify emissions reductions and to monitor the parties’ accomplishment (common rights)  Defining the opportunities for different actors to operate inside the created market (individual benefits)

6. Common responsibilities and individual duties  Double-target structured agreement corresponding to a set of common (global) responsibilities: –A long-term and virtually-zero emissions target –A distribution of the target in milestones or time-frames along the stated period  Dynamic distribution of reductions obligations (duties) between the parties –Based on comparative per-capita emissions –Automatically modified along the time-frames

7. Calculating individual duties

8. Example/hypothesis on responsibilities and duties  Reference year 2015  Target 80% of reductions by 2080  16 time-frames of 4 years each (excluding the first one)  5% of reductions compared to the reference year for each time-frame

9. Common rights and individual benefits  A single reductions’ certification system is adopted  Parties can only use the system to accomplish with their duties  The global certification represents a shared (common) asset (right) at disposal to any reductions producer  Certifications become revenues (benefits) for the (individual) actors reducing emissions

10. Presumptions as pillars and scope of a carbon market  A quantified global GHGs emissions reductions objective  The distribution of the tasks to reach the objective  An instrument to demonstrate the achievement of the tasks  The different ways to obtain the instrument

11. Establishment of a global carbon market  A single institution for the issuance of the certifications  A single international market for the certifications exchange  A single organisation in charge of collecting certifications at the end of the time-frames

12. The International carbon Fund  Certification of reductions  Issuance of certificates (GERs) for achieved reductions  Virtually any form of reduction is entitled to be certified  Overcoming the additionality issue

13. The carbon market  Demand ultimately represented by the parties emissions duties  Offer represented by any action reducing emissions  Exchange system based on elements of a free international market  System likely to be modified at inter-parties, parties, and sub-parties levels

14. The carbon bank  Parties with duties need to demonstrate the accomplishment collecting a corresponding amount of GERs  Parties can stock GERs that exceed their duties or can stock GERs even in absence of duties  A single organisation functioning as deposit for accumulated GERs and as verifier of the parties accomplishment with their duties

15. Categories of outcomes and domains  Direct outcomes  Possible outcomes  Mixed outcomes  Domains directly related to climate change  Indirect domains

16. Outcomes  Non-economic outcomes: – Energy – Environment – Society  Economic outcomes: – Investments – Productivity – Finance

17. Elements for a monetary system  A commodity (GHGs) measurable and finite acting as reference for the currency (GERs)  GERs will have a fixed exchange rate with GHGs guaranteeing the intrinsic value of the currency  A flexible exchange rate between GERs and any other currencies will be applied as consequence of GERs tradability  A single institution (the ICF) will be entitled for the potential currency's issuance  The exchange of the potential currency will be open worldwide  A single institution (the CB) will be in charge for the collection and deposit of the GERs

18. Conclusions  A radical change of perspective towards climate change mitigation policy and beyond  A first sketch of a new socio-economic model  Requiring relevant efforts to become a proper sustainable system  Time is the main matter but parties may demonstrate that time not always matters

19. Thank you