Diamant Presents at Carbon Finance North America 2007 Conference
EPRI’s Adam Diamant made a presentation on “Linking Global GHG Emissions Trading Markets:  Issues and Approaches” at the Carbon Finance North America 2007 conference, held June 13–15 in New York.  This event brought together approximately 250 senior representatives of the European, Asian, and U.S. financial sectors to explore risks and opportunities in existing and evolving GHG emissions markets around the world.  Mr. Diamant’s presentation explored approaches, opportunities, and constraints related to linking existing and emerging GHG emissions markets in different regions.  The linking of emerging GHG markets would promote “where” flexibility by making it possible for emissions reductions to be implemented in the most cost-effective locations around the world, thereby helping to reduce the economic costs associated with achieving a given level of GHG emissions stabilization.  In the near term, it is very unlikely that emerging GHG trading markets around the world will be linked directly—i.e., so that GHG allowances issued in one trading system could be freely used for compliance in a different system.  However, it is much more likely that emerging GHG markets will be indirectly linkedtogether via financial arbitrage across emerging markets or via mutual recognition of a third-party carbon “currency” like the Certified Emissions Reductions (CERs) created under the Kyoto Protocol’s Clean Development Mechanism.  For more information, contact Adam Diamant, (510) 260-9105, adiamant@epri.com.