全球碳市场进展2020 年度报告 （英文） -国际碳行动伙伴关系（ICAP）

InternationalCarbonActionPartnershipEMISSIONSTRADINGWORLDWIDEStatusReport2020EMISSIONSTRADINGWORLDWIDEInternationalCarbonActionPartnership(ICAP)StatusReport2020EDITORIALTEAM:StephanieLaHozTheuer,WilliamAcworth,BaranDoda,ChristopherKardish,KaiKellner,EmmaKrause,ErnstKuneman,VictorOrtizRivera,MartinaKehrer,JuliaGroß,TobiasBernstein,ConstanzeHaug.CITEAS:ICAP.(2020).EmissionsTradingWorldwide:StatusReport2020.Berlin:InternationalCarbonActionPartnership.TheICAPSecretariatexpressesitsgratitudetopolicymakersfromtheICAPmembershipandfurthercollaboratorsfromtheemissionstradingfield,whoprovidedinsightfulwrittencontributionsand/orcarefullyreviewedthereport:BotagozAkhmetova(Kazakhstan),EbenezerAsamany(NovaScotia),ThomasBallou(Virginia),Jona-thanBeaulieu(Québec),Jean-YvesBenoit(Québec),PierreBouchard(Québec),MavisChan(Canada),SatoshiChida(TokyoMetropolitanGovernment),JohnCooper(NovaScotia),FranciscoDall'OrsoLeón(Chile),MarcoAuréliodosSantosAraujo(Brazil),SteveDoucet-Héon(Québec),BillDrumheller(Washington),ThomasDuchaine(Québec),VíctorHugoEscalonaGómez(Mexico),JillFernandez(NewZealand),DidaGardera(Indonesia),JasonGray(California),QianGuoqiang(SinoCarbon),AlexanderHandke(Germany),MaddyHayden(NewMexico),LarryHegan(Canada),PaulaHemmer(NorthCaro-lina),LolitaJackson(NewYorkCity),TedJamieson(NewZealand),HadikaJamshaid(Pakistan),YuJiahui(SinoCarbon),ThomasKellerhals(Switzerland),ChristineKirby(Massachusetts),ChanghwanLee(RepublicofKorea),JeffLindberg(Canada),HuyLuongQuang(Vietnam),AmberMacNeil(Canada),ColinMcConnaha(Oregon),EnginMert(Turkey),MichelleMiller(NovaScotia),ShinichiroNiihara(Insti-tuteforGlobalEnvironmentalStrategies),AnaLuizaOliveiraChamploni(Brazil),MichellePalmer(NewZealand),PennsylvaniaDepartmentofEnvironmentalProtection,GermanDavidRomeroOtalora(Colombia),KarenSabasteanski(Virginia),RajinderSahota(California),AnothaiSangthong(Thailand),YumikoSato(TokyoMetropolitanGovernment),JuanPedroSearle(Chile),WilliamSpace(Massachu-setts),IrinaStavchuk(Ukraine),WilliamTait(NewZealand),AnneTrudel(Québec),AndrewWebber(NovaScotia),SophieWenger(Switzerland),BrittanyWhite(NovaScotia),BeatrizYordi(EuropeanCommission),OlgaYukhymchuk(Ukraine),DanZarrilli(NewYorkCity),ChenZhibin(SinoCarbon),JuliaZiemann(EuropeanCommission).TheICAPSecretariatisgratefultotheGermanFederalMinistryforEnvironment,NatureConservationandNuclearSafety(BMU)forfundingthisreport.adelphiconsultGmbHlendsscientificandtechnicalsupporttotheICAPSecretariatandcoordinatedthecompilationandproductionofthereport.AspecialthankstoLisaStorcks,IrinaMezurnishviliandYinshuoXuforeditorialassistance.TABLEOFCONTENTSFOREWORD0507EXECUTIVESUMMARYPRACTITIONERINSIGHTSCALIFORNIA111316182123AportfolioapproachtoclimatechangeCHINAETSasfutureclimatepolicyanchorEUROPEANUNIONLeveragingcarbonpricingforthelow-carbontransitiontowardsclimateneutralityNEWZEALANDAcollaborativeapproachtopricingagriculturalemissionsQUÉBECArevitalizedapproachto2030THETRANSPORTATIONANDCLIMATEINITIATIVEUSstateslookbeyondelectricityINFOGRAPHICSFROMSUPRANATIONALTOLOCAL26ALLOWANCEPRICES27282930313233EMISSIONSTRADINGWORLDWIDEGLOBALEXPANSIONOFEMISSIONSTRADINGSECTORCOVERAGEDIFFERENTSHAPESOFETSAUCTIONINGREVENUETHEPATHTONETZEROFACTSHEETSEUROPEANDCENTRALASIAEuropeanUnionSwitzerland3637434750535456KazakhstanGermanyUkraineTurkeyUnitedKingdomNORTHAMERICAWesternClimateInitiativeCalifornia57585964QuébecCanada687175788283848687888990NovaScotiaMassachusettsRegionalGreenhouseGasInitiativePennsylvaniaTransportationandClimateInitiativeVirginiaNewMexicoNewYorkCityNorthCarolinaOregonWashingtonLATINAMERICAANDTHECARIBBEAN9192969798MexicoColombiaBrazilChileASIA-PACIFICBeijing100101104107110113116119122124128132136139142143144145146147ChongqingFujianGuangdongHubeiShanghaiShenzhenTianjinNewZealandRepublicofKoreaTokyoSaitamaChinaTaiwan,ChinaIndonesiaJapanPakistanThailandVietnamABOUTICAP&NOTESABOUTTHEINTERNATIONALCARBONACTIONPARTNERSHIPNOTESONMETHODSANDSOURCESLISTOFACRONYMS149153157159IMPRINTFOREWORDETSsandcompanionpoliciesontheroadtonet-zeroemissionsAcrosstheworld,2019sawasurgeinawarenessofclimatemostcertainandcost-effectivepathtocarbonneutrality.Tech-changeandpublicpressuretolimittheemissionsthatcausenologymandatesandinnovationpoliciesmaybecrucialinit.Asthe2020sbegin,thismomentummustbetranslatedintodrivingnewlow-carboninvestment:forexample,preventingconcreteclimateambitionifwearetokeepglobaltemperaturecarbonlock-inthroughlong-livedcapitalassetsincertainjuris-riseswellbelow2°C.Wearedelightedtonotethatseveraljuris-dictionsmayrequiretechnologyphase-outs.dictionshaverisentothechallengeandputforwardcarbonneutralitytargets.CaliforniaintendstobecarbonneutralbyETSsandotherpoliciesarenotindependentofeachother,2045andnet-negativethereaꢀer;theEuropeanUnion,underbutratherinteractinmanyways.AuctionrevenuesfromETSstheGreenDeal,willworkcollectivelytowardsachievingcarbonprovideimportantfinancialresourcesforpublicinvestmentintoneutralityby2050;Swedenaimstoreachnet-zeroemissionsbysupportinginnovationandfurtheremissionsreductions.In2018,2045,withFrance,Switzerland,andtheUnitedKingdomaimingatotalofEUR14.1billion(USD15.8billion)wasdistributedtoEUtodothesameby2050;andseveralothercountries,likeChile,memberstatesfromtheauctioningofEUETSallowanceswithCostaRica,Fiji,andtheMarshallIslandsareleadingcarbonsome70%spentforclimate-andenergy-relatedpurposes.OnneutralityinitiativesintheGlobalSouth—buildingupglobaltopofannuallydistributedauctionrevenues,theEUETSInno-momentumtowardsreachingnetzerointhesecondhalfofthevationFund,financedfromtheauctioningofEUETSallowances,century.Thisyear’sStatusReportexploreshowdifferentpolicywilldisburseuptoEUR10billion1(USD11.2billion)overthenextinstrumentscancometogethertodrivethedeepdecarboniza-decadetosupportinnovativelow-carbontechnologiesinener-tionneededtomeettheseambitiousgoals.gy-intensiveindustries,constructionandoperationofcarboncaptureandstorage,andinnovativerenewableenergygener-Emissionstradingsystems(ETSs)areakeypieceofthepuzzle.ation,amongothers.RGGIdedicatesover50%ofitsrevenueTheIntergovernmentalPanelonClimateChangehighlightsthattoenergyefficiencyprojectssuchasretrofittingandinsulationexplicitcarbonpricesremainanecessaryconditionofambitiousprograms,andQuébecallocatesthelargestshareofitsauctionclimatepoliciesandthatotherpoliciesreflectingrobustpricerevenuetopromotingcleantransport.ETSscanthusgeneratesignalsarenecessarytoachievecost-effectivedecarbonizationadoubledividendofdrivingmitigationwithintheircoveredpathways.AndETSsarealreadydelivering.Acrosstheworld,sectorsthroughcarbonpricingandfurtherreducingemissionsETSshavebeenstrongdriversofemissionsreductionsintheelec-bytailoredspendingofauctionrevenues.tricitysector,notablybyhelpingmakecoallessattractive:CO2emissionsfrompowerplantsundertheRegionalGreenhouseGasInitiative(RGGI)havefallenby47%since2008,andintheUK,coalsuppliedonly5%ofelectricityin2018,downfrom39%in2012.Inbothcases,carbonpricingwasthemain(albeitnottheonly)policydriver.Similarly,inGermany,areinforcedcarbonpricesignalintherevisedEuropeanUnionEmissionsTradingSystemCarefullycraꢀedpolicy(EUETS)contributedtoaprojected18%year-on-yeardecreaseinpowersectoremissionsin2019,bringingtheGerman2020miti-gationtargetbackwithinreach.ETSsarealsohelpingtodecar-bonizeindustrialsectors.InCalifornia,forexample,industrialemissionswentdownby4.6%between2013and2017despiteaGDPgrowthofnearly17%.packagesthatcombinecarbonpricingwithothertypesofregulationcanYetsolvingthedeepdecarbonizationpuzzlewilldemandpoli-ciesbroaderthancarbonpricingalone.Thepathtonetzeroprovidethemostcertainrequiresdeepandprogressingemissionsreductionsinindustry,transportation,andbuilding—sectorswhereinnovationpoli-ciesanddirectregulation(suchasbuildingcodes,procurementframeworks,andminimumperformancestandards)canalsoplayastrongrole.Carefullycraꢀedpolicypackagesthatcombinecarbonpricingwithothertypesofregulationcanprovidetheandcost-effectivepathtocarbonneutrality1–EstimatebasedoncurrentcarbonpricesintheEUETS05ContentsETSscanplaydifferentrolesinthepolicymix,andtheroleofanETSmayalsodifferfromsectortosector.ContinuedresearchandpolicyassessmentsarenecessarytobetterunderstandtheoptimalpolicymixfordeepdecarbonizationInthiscontext,theemissionreductionsachievedinETSsectorsbynon-ETSpolicies–suchasrenewableenergyandenergyeffi-ciencyregulations–mustbereflectedinthecaptrajectoryforETSstoremaineffective.MarketstabilitymeasureswithinETSsareakeypolicytoolforthis.ETSscanalsoacttoguaranteeacertainenvironmentaloutcomeregardlessoftheperformanceofotherpolicies.InCalifornia,forexample,aroundtwo-thirdsofforecastedemissionreductionsthrough2030aredrivenbyregu-lationssuchasalowcarbonfuelstandardandtherenewableenergyportfoliostandard;theCaliforniaCap-and-TradeProgramisreliedupontodeliverallremainingreductionsnecessarytoachievethe2030target.ETSscanthereforeplaydifferentrolesinthepolicymix,andtheroleofanETSmayalsodifferfromsectortosector.Continuedresearchandpolicyassessmentsoveravarietyofjurisdictionsandsectorsarenecessarytobetterunderstandtheoptimalpolicymixfordeepdecarbonizationunderdifferentcircumstances,aswellastheinteractionsbetweencarbonpricingandotherpolicyapproaches.Theclimatechallengethatliesaheadisenormous.TheInter-nationalCarbonActionPartnership(ICAP)isakeyplatformforcarbonmarketpolicymakerstobuildtechnicalcapacityaswellasexchangeviewsandbestpracticesaboutdesigningeffectivecarbonpricinginstrumentsaspartofcohesiveandambitiousBEATRIZYORDIpolicyframeworksthatcandriveemissionstowardsnetzero.RAJINDERSAHOTACo-chairoftheInternationalCarbonCo-chairoftheInternationalCarbonActionPartnershipandChiefoftheIndustrialStrategiesDivision,ActionPartnershipandDirectorofEuro-peanandInternationalCarbonMarkets,Directorate-GeneralforClimateAction,EuropeanCommissionCaliforniaAirResourcesBoard06ContentsEXECUTIVESUMMARYIn2019theworldsawasurgeinawarenessandpublicsupportThisyear’sICAPStatusReportfeaturesarticlesfrompolicy-forclimateaction.TheIntergovernmentalPanelonClimatemakersaroundtheworldthatprovidepersonalinsightsintohowChange(IPCC)specialreporthighlightedtheurgencyoflimitingjurisdictionsarecraꢀingpolicypackagesofETSsandcompanionglobalwarmingto1.5°CandofreducingGHGemissionsfromallpoliciestodrivedeepemissionsreductions.TheEuropeansources.Worldwide,emissionstradingsystems(ETS)continueUnion,forexample,outlineshowarevisedandstrengthenedtobeakeypieceofthemitigationpuzzle,with21systemsnowETSwillbeakeyinstrumentfordeliveringcarbonneutralityoperatingacrossfourcontinentsand24furthersystemsunderandsupportingtheEuropeanGreenDeal,whichoutlinesecon-developmentorunderconsideration.omy-widecompanionpolicies.NewZealanddiscusseshowitrecentlyestablishedanoverarchingclimateframeworkwiththeThiseditionoftheInternationalCarbonActionPartnership’sClimateChangeResponse(ZeroCarbon)AmendmentAct,along(ICAP)EmissionsTradingWorldwidereportoutlinesthekeywithreformstotheNewZealandETSthatwillhelpachievethedevelopmentsandtrendsinemissionstradingoverthepastyear.framework’stargetofnet-zeroemissionsby2050.ItpresentsarticlesbyETSpractitionersfromICAPmemberjuris-dictions,providingdirectinsightsintotheirsystemsandpolicies;CaliforniatakesabroadportfolioapproachinitsclimatepolicyinfographicsexaminingandcomparingkeyETSfactsandfigures;strategy,relyingonarangeofmeasures—includingaRenewableanddetailedfactsheetsoneachsystemcurrentlyinforce,underPortfolioStandard,energy-efficiencygoals,andaLowCarbondevelopment,orunderconsideration.FuelStandard—inconjunctionwiththeCaliforniancap-and-tradeprogramtoachieveGHGreductiongoals.Thestate’sScopingPlanestimatestheimpactofeachpolicyanddefineshowtheyworktogether,withthecap-and-tradeprogramulti-matelyhelpingensurethatreductionsoccur.Québecalsohigh-lightsthenecessityofintertwiningaseriesofcomplementaryTAKINGACOMPREHENSIVEANDCOMPLEMENTARYAPPROACHFormanyjurisdictions,2019wasayearofputtingforwardpoliciesthatfocusonthewiderelectrificationofitseconomy,carbon-neutralitytargets.FromtheEuropeanUniontoFiji,fromparticularlytransport.TheCanadianprovinceisalsoconsideringtheUnitedKingdomtoCalifornia,fromNewZealandtoCostaareformtoitscap-and-tradesystemthatwouldprovidestrongerRica–ahostofjurisdictionsareleadingneutralityinitiativesabatementincentivesforindustrialfacilitieswhiledirectingmorearoundtheglobe.TheIPCChighlightsthatexplicitcarbonpricessupportforthemtoinvestinlow-carbontechnologies.remainanecessaryconditionofambitiousclimatepolicies,andthatotherpoliciesreflectingrobustpricesignalsarenecessarytoEmergingsystemsalsoprovideprimeexamplesofpolicypack-achievecost-effectivedecarbonizationpathways.agestodrivedecarbonization.Chinaoffersanapproachthatspansvariouslevelsofgovernment:policiessuchasthenationalCarbonpricingplaysacentralroleindeliveringbroad-basedETSandlow-carbondevelopmentpilotprogramstargetCO2andcost-efficientabatement,yetdeepdecarbonizationalsoemissionsnationally,andarecoupledwithregionalcarbon-in-requiresotherpolicies.Forexample,drivingemissionsreduc-tensityandenergy-intensitytargetsenshrinedinfive-yearplans.tionsintheindustry,transportation,andbuildingsectorswillOthersystemsareexaminingsectoralapproaches:thisisthecaserequirecomplementarypoliciessuchasperformancestandards,oftheTransportationClimateInitiative,apotentialU.S.regionalbuildingcodes,andinnovationsupport.Carbonpricingcancap-and-investprogramfocusedonreducingcombustionofactivelysupporttheimplementationofsuchpolicies:mostoftransportationfuels.Theprogramwouldcomplementexistingthe78billionUSDcollectedinauctionrevenuestodatehasbeenETSs(includingtheRegionalGreenhouseGasInitiativeandtheinvestedintoinnovationandfurtheremissionreductions.ETSsMassachusettsLimitsonEmissionsfromElectricityGenerators),canalsoactasanenvironmental“safetynet”,helpingensurearegulationsthatmandatethesaleofzero-emissionsvehicles,specificenvironmentaloutcomeregardlessoftheperformanceandprogramsthatproviderebatesortaxsubsidiestoelectricofotherpolicies.Conversely,ETSdesign(suchasthecaptrajec-vehiclepurchasersinordertodrivefurtheremissionreductionstory,supportedbymarketstabilityinstruments)musttakeintointhetransportationsector.accounttheemissionsreductionsdrivenbynon-ETSpoliciessuchasrenewableenergyandenergyefficiencyregulations.ETSscanalsoplaydifferentrolesinthepolicymix,andtheroleofanETScanalsodifferacrosssectors.Whencarefullycraꢀed,policypackagesthatcombinecarbonpricingwithothertypesofregulationcanprovidethemostcertainandcost-effectivepathtocarbonneutrality.07ContentsAYEAROFETSDEVELOPMENTSOverthecourseofthelastyear,emissionstradingsystemsunderwentarangeofdevelopments.Updatesincludedbroadeningsectoralcoverage,refiningallocationmethodologies,and/orlinkingwithotherETSjurisdictions,amongstothers.Newsystemsarealsointhemaking,asjurisdictionsworkonthedesignandoperationalizationoftheirETSs.Herewesummarizeupdatesofsystemscurrentlyinforce(i.e.,thosealreadyoperating)andthoseunderdevelopment(i.e.,jurisdictionsinwhichamandateforanETSisinplace,andwheresystemrulesarecurrentlybeingdraꢀed),aswellasotherjurisdictionswithmajordevelopmentsin2019.EuropeandCentralAsia•EuropeanUnion:TheEUETSMarketStabilityReservestartedoperatingin2019.Followingtheadoptionofthepost-2020policyframework,regulatoryactivitiesin2019focusedonimple-mentingtheagreedprovisionsaheadofthenexttradingphase(2021-2030)–includingprovi-sionsoncarbonleakage,freeallocationandauctioning.LinkedwiththeSwissETS(seebelow).Switzerland:ThelinkwiththeEUETSwasratifiedbybothsidesandtookeffecton1January2020.Inpreparingforthelink,Switzerlandbroadenedsectoralcoverageandexpandedpartici-pationintheSwissETS’ssecondarymarkettononcomplianceentities.Kazakhstan:Theendof2019sawthefirstexchangeofallowancessincetheKAZETSrestartedoperatingin2018.Transactionsareexpectedtobeactivein2020,asitisthelastyearofthecurrentETSphase.Germany:WilllaunchanationalETSforheatingandtransportfuelsin2021,complementingtheEUETS.Legislationwasadoptedin2019toimplementthesystemgradually,firstwithafixedannualprice,increasingovertheperiod2021–2025.In2026,auctionswithminimumandmaximumpriceswillbeintroduced.•••••Ukraine:AdoptedanMRVLawwhichprovidesabasisforthedevelopmentofanETS.Montenegro:AdoptedaclimatelawwithprovisionsforanETSinthepowerandindustrysectors.Allowanceswillbepartlyauctioned,withaminimumauctionreservepriceofEUR24(USD27)pertonne.Auctionrevenueswillbeusedforenvironmentalmeasures.Thesystemwillalsofeatureapricestabilizationreserve.1NorthAmerica•California–Québec:SomeregulatoryamendmentsconformingwithAB398wentintoeffectin2019,thoughsomemajorchanges(e.g.,priceceiling,offsets-relatedlimits)willnottakeeffectuntil2021.Québec’sregulatoryworkin2019focusedonaproposedreformoffreeallocationfrom2024–2030.•••NovaScotia:Startedoperatingitssystemin2019incompliancewiththe‘Pan-CanadianFrame-workonCleanGrowthandClimateChange’.Massachusetts:2019sawanincreaseintheshareofallowancesauctionedinitssystem,whichcoversthepowersectorandcomplementsRGGI.RegionalGreenhouseGasInitiative(RGGI):ThemajorityofRGGIparticipatingstateshaveadopteddesignchangesendorsedinthe2017ModelRule,includinganincreasedannualreductionfactorandnewemissionscontainmentreserveforthepost-2020period.NewJerseyadoptedETSlegislationin2019andrejoinedRGGIatthebeginningof2020.VirginiaisalsointheprocessofestablishinganETSandcouldjoinRGGIbytheendof2020.••Pennsylvania:Thestate’sgovernordirectedthePennsylvaniaEnvironmentalQualityBoardtodevelopaproposalforanETSby31July2020.ThesystemwouldcoverCO2emissionsfromtheelectricpowersectorandcouldbelinkedtoRGGI.TheTransportationandClimateInitiative(TCI):Asubsetofthe13jurisdictionsparticipatingintheU.S.EastCoastTCIreleasedadraꢀframeworkoutliningbasicdesignfeaturesofaregionaltransportsectorETSstartingasearlyas2022.081–TheMontenegrinsystemwasannouncedaꢀertheeditorialcut-offdateforthisyear’sICAPStatusReportandisthereforesummarizedhereonlybriefly.FormoreinformationpleaserefertotheICAPwebsite.Contents•Oregon:Thestateattempted,albeitunsuccessfully,topassacap-and-tradebillin2019.Inearly2020thelegislatureputfortharemodeledbill,proposingtoestablishacap-and-tradeprogramstartingin2022.LatinAmericaandtheCaribbean•Mexico:TheMexicanETSpilotstartedoperatingon1January2020.TheprogramcoversdirectCO2emissionsfromenergyandindustry,representing37%ofnationalemissions.ThefullETSisscheduledtobeoperationalin2023.•Colombia:WorkonthedesignofanationalETScontinues.AsiaPacific•China:ContinuestoprepareforthefulllaunchofitsnationalETS.In2019,theMinistryofEcologyandEnvironmentreleaseddraꢀinterimregulationsonthemanagementofemissionstrading,aswellasatrialplanforallocatingemissionsallowances–twoimportantstepstowardsadoptingETSimplementingregulations.Simulationtradingisexpectedtostartin2020.ChinesePilots:ContinuetooperatewithincreasinglevelsoftradingactivitywhilepreparationsfortherolloutoftheChinanationalETScontinue.RepublicofKorea:Helditsfirstregularauctionofallowancesin2019.KoreaalsoreleasedthefirstroundofexpectedreformsforPhaseThreefrom2021–2025.Reformsincludei)ayet-to-be-determinedstricteremissionscap,ii)anincreasingshareofauctioningfornon-EITEsectors,andiii)increaseduseofsector-specificbenchmarking.•••NewZealand:Decidedonfurtherreformstothesystemin2019,including:phasingdownindus-trialfreeallocationsstartingin2021,cancelingandreplacingunitsfromthefirstcommitmentperiodoftheKyotoProtocol,introducingnewaccountingmethodsfortheforestrysector,andconfirminganewrepaymentpenalty.Alsoreachedanagreementwiththeagriculturalsectortofosteron-farmemissionsreductionsandtoworktowardsimplementingfarm-levelpricingby2025.•TokyoandSaitama:Thesecity-levelsystems,linkedsince2011,continuetodriveemissionsreductionsinlargebuildingsandfactories.••Taiwan(China):WorkonthedesignofanETScontinues.Philippines:Currentlydiscussingabillthatwouldestablishacap-and-tradesystemfortheindustrialandcommercialsectors.2ICAPANDTHEYEARSAHEADClimatechangeisadefiningissueofourtime,andcarefullycraꢀedpolicypackagesofETSsandcompanionpoliciesarekeytodrivingthedeepdecarbonizationrequired.ICAPisakeyforumforpolicymakersworldwidetocomparenotesandsharelessonslearnedonthedesignandimplemen-tationofemissionstradingsystems.Welookforwardtocontinuingstimulatingdiscussionsinanever-expandingcircleofpeers–pioneeringandfine-tuningcarbonmarketsasakeytoolonthepathtowardsdeepdecarbonization.2–ThedevelopmentsinthePhilippineswereannouncedaꢀertheeditorialcut-offdateforthisyear’sICAPStatusReportandarethereforesummarizedhereonlybriefly.FormoreinformationpleaserefertotheICAPwebsite.09Contents01PRACTITIONERINSIGHTSAdoptingaportfolioapproachofcomplementarymeasuresprovidesthegreatestassuranceofachievingdeepGHGreductionsCALIFORNIAAportfolioapproachtoclimatechangeCaliforniaAirResourcesBoardTHECHALLENGETheScopingPlanmodeledpoliciestoreduceGHGemis-sions.Itrecognizedthattheuseofincentiveprograms,Recentyearshaveseenincreasingly(andalarmingly)includingthroughthefundsfromthecap-and-tradeclearfindingsfromtheIntergovernmentalPanelonprogramauctions,isanimportanttooltoimplementClimateChange(IPCC)ontheimperativetoreduceGHGthosepoliciesalongwithregulations.TheScopingPlanemissionsfromallsourcesforustoevenhaveachancealsoidentifiedwhereadditionalactionisneeded,suchatkeepingclimatechange–inducedtemperatureriseasinCalifornia’slandsector.California’snaturalandto1.5°Celsius.TheIPCChaspointedtoprogramslikeworkinglands—ourforestsandwetlands,ourfarm-carbonpricingasnecessarytoolstoutilizeinthiseffort,landsandrangelands—arecurrentlyanetemissionbutnotinisolation.Adoptingaportfolioapproachofsourceratherthanasink.complementarymeasuresprovidesthegreatestassur-anceofachievingdeepGHGreductionsandcarbonWeknowthatevenwhilewetackleindustrial,elec-neutralitygoals,withcarbonpricinghelpingensureatricity,andtransportationemissionsaslaidoutinthelower-costtransitiontoacleanereconomy.CaliforniaScopingPlan,muchmoreeffortmustoccurtoreducehasfollowedthisportfolioapproachforoveradecade,GHGlossesfromourforestsandfarmlands,whileandwewillcontinuetodosoaswemakeprogressincreasingtheirabilitytosequesteradditionalcarbon.towardourambitiousbutcritical2030,2045,and2050Achievingcarbonneutralitymid-centurywillrequireGHGgoals.emissionsfromfactories,powerplants,andvehiclestobeasclosetozeroaspossible,alongwithasmuchsequestrationandavoidedlossesaspossiblefromourlands.Californiacontinuestodevelopstrategiesandassessasimilarportfolioapproachofincentives,APORTFOLIOAPPROACHINCLUDINGCAP-AND-TRADEOurmostrecentClimateChangeScopingPlan,whichmandates,andmarket-basedprogramsforournatural1servesasCalifornia’sstatewideclimateactionplan,andworkinglands.wasadoptedbytheCaliforniaAirResourcesBoard(CARB)inDecember2017.Thisscopingplanrecom-mittedthestatetoembracinganapproachthatusesallofthetoolsavailabletoachieveCalifornia’s2030GHG2reductiongoalof40%below1990levels(seeFigureFigure1:ClimateStrategyfor2030Target*1).Thescopingplanlaysoutacost-effectiveandtech-nologicallyfeasiblepathtoachieveour2030target,includinghowourmultipleprogramsworktogether,withourcap-and-tradeprogramultimatelyhelpingensurereductionsoccur.DoublebuildingefficiencyCleanerfreightandgoodsmovementSlashpotent″super-polutants″fromdairies,landfillsandrefrigerants50%renewablepowerCapemissionsfromtransportation,industry,naturalgas,andelectricityMoreclean,renewablefuelsForinstance,ourRenewablePortfolioStandardandenergyefficiencygoals,alongwithdirectmeasuresonsourcessuchaslandfillsandelectricityswitchgear,