the ultimate in vanity … i can't believe the price we pay ... · 1 halls of justice painted...
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Halls of justice painted greenMoney talking
Power wolves beset your doorHear them stalking
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The ultimate in vanity …I can't believe the price we pay
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Seeking no truthWinning is all
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Nothing can save usJustice is lost
Justice is rapedJustice is done
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.. or in more scientific terms
Carbon trading is …
“the selling of indulgences …
a money printing machine for utilities …
not capable of capping the bottle that released the CO2-Genie …
not in line with principles of social justice in a globalized world”.
(Altvater/Brunnengräber 2008: 9ff; translated by SR)
“apparent failure …
showing little regard for … social consequences”
(Spash 2009)
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Is social justice really lostin current carbon market design?
Sven RudolphAchim Lerch
ISEE2016,University of the District of Columbia, Washington DC
June 26 – 29, 2016
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Source: Francois Mori/AP
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The Paris Agreement
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Source: Francois Mori/AP
UNFCCC INDC 2015
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Carbon Markets Map
Carbon Markets
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“If it is feasible to establish a market to implement a policy, no policy-maker can afford to do without one.
Unless I am very much mistaken,markets can be used to implement
any anti-pollution policy that you or I can dream up ”(Dales 1968: 100)
Yet ETS “apparent failure” (Spash 2009) and EU ETS “clinically dead” (Kemfert 2015)!
Still, cap-and-trade efficient and effective in theory (Tietenberg 2006);some positive experiences in practice (Ellerman et al. 2000, EDF 2014);
good prospects of carbon market linking (Ranson/Stavins 2012);sustainable design is possible (Rudolph et al. 2012)!
Why Carbon Markets?
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Why Social Justice?
?
✓
✓“Scholarship has
largely overlooked …
justice dimensions of
… cap and trade”
(Klinsky 2015)
“Equity has been elusive,
but central in … sustainable
development and climate policy. …
2°C … a key enabler of ambition”
(Klinsky/Winkler 2013)
Why Social Justice?
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Energy Costs (€ and % per a)
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Social Justice Concepts
social justice in abstract terms!?
procedural justice vs. the result of distributive justice
justice in transfer/acquisition vs. justice within allocation vs. redistributive justice
desert-based justice and welfare-based justice
egalitarianism vs. non-egalitarianism
inter- and intra-generational justice
national and international justice
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Participation
voluntary vs. mandatory
Coverage and bindingness
pollutants
polluters
Cap
target, total amount of emissions
absolute volume cap vs. specific intensity targets
dynamics of the cap (depreciation of allowances, reduction of cap size)
Initial allocation and validity of the allowances
free of charge (grandfathering, benchmarking) vs. for purchase (auction, fixed price)
banking and borrowing
offsets (domestic, international)
Revenue use
Trading system
marketplace
compliance periods
market interventions (safety valve, price limits etc.)
Monitoring and penalties
monitoring, reporting, verification (MRV); registries (allowances, emissions)
Fines and compensation
Linking
Cap-and-Trade(Dales 1968)
CarbonMarketDesign
Socially Just Carbon Market Design
Participation voluntary/mandatory mandatory
Coverage pollutants all
polluters all
Cap target (amount) 25-40% by 2020 (1990)
absolute/specific absolute volume
dynamics gradual cap size reduction
Initial allocation andallowance validity
banking/borrowing banking, no borrowing
offsets high quality, no quantity limits
for free/purchase full auctioning
Revenue use revenue recycling dividend, cost compensation
Trading system marketplace equally accessible to all
compliance periods short
market interventions price floor, no price ceiling
Monitoring andpenalties
MRV, registry reliable
penalties fine and ex post compensation
Linking linking linking 13
Socially Just
Carbon Markets
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Carbon Markets Map
Case Studies
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CurrentEU, US, JP
Carbon Markets
EU ETS RGGI CalCaT TMG ETS
Participation voluntary/mandatory
Coverage pollutants
polluters
Cap target (amount)
absolute/specific
dynamics
Initial allocation andallowance validity
banking/borrowing
offsets
for free/purchase
Revenue use revenue recycling
Trading system marketplace
compliance periods
market interventions
Monitoring andpenalties
MRV, registry
penalties
Linking linking
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Conclusions
Social justice is key to carbon market design …as sustainability, increasing compliance costs, and presently unfair burden-sharings
call for reconsidering social justice, not least in order to increase the political feasibility!
Carbon markets can be made socially just …and design recommendations from the social justice perspective do not differ much from
environmental or economic requirements!
While there has been improvements in recent reforms and programs differ greatly …
Existing schemes can be significantly improved … by broadening coverage, tightening caps, and auctioning off all allowances while using revenues for social purposes!
