ICC peered into the future of carbon trading here during the UN Framework Convention on Climate Change (UNFCCC) meeting of Subsidiary Bodies.

Nick Campbell, Chair of the ICC Task Force on Climate Change, moderated  a panel of four experts in ICC’s second discussion on carbon trading after 2012, when a new global framework on climate change is scheduled to take effect.

The UNFCCC set a deadline by late next year to create a climate change agreement post-2012.

Yoshi Tachibana, Sustainability Advisor to the Board of Tokyo Electric Power Company, said one of the most effective ways to reduce emissions is to move towards a low carbon world, which can be achieved by increasing the share of energy from sources such as nuclear power and renewables.  M arket mechanisms must be suitable to national conditions, he added . 

Henry Derwent, CEO of the International Emissions Trading Association, said carbon trading has taken off in recent years and was optimistic about the future for these markets.  Mr Derwent also gave an overview of carbon markets in Australia and South Korea, adding that the outlook was becoming more favorable for carbon trading in Japan and the US.

John Scowcroft, Representative of power utility body Eurelectric, said the industry faced three future challenges: security of energy supply, competitiveness and climate change, adding that the sector must be in the forefront of efforts to reduce emissions.

Andrei Marcu, CEO of BlueNext, a newly-created environmental exchange,  demonstrated the value of markets in achieving emissions reductions. He cited the results of a recent World Bank report on how the Clean Development Mechanism, which allows industrialized countries to reduce emissions by investing in projects in developing countries, and the European Emissions Trading Scheme, have cut emissions. In the future, carbon capture and storage and sectoral schemes must also be included in the mix of approaches to reduce emissions, he added.  

ICC will continue to provide a range of views to UNFCCC negotiators, and encourages policy-makers to work closely with the private sector on solutions to address climate change.