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Climate Change 2016
October 27-29, 2016
Volume 7, Issue 9(Suppl) J Earth Sci Clim Change
ISSN: 2157-7617 JESCC, an open access journal
conferenceseries .com
October 24-26, 2016 Valencia, Spain
World Conference onClimate Change
Pricing of carbon and funding of low carbon transition under a 20C regime
Bose K Varghese
Infosys Limited, India
When the Paris Agreement comes into force, the world would have committed to limiting global warming to below 20C.
The 20C regime calls for a drastic and ambitious reduction, up to 70% of the 2010 emissions by 2050, in global GHG
emissions. That can be achieved only through a transformation of the fuel intensive sectors and the economy in general. While
the 20C regime inherently puts a price on carbon, how to arrive at a fair price and will pay that price, and how to extract that
price are questions yet to be answered. Setting a fair price for carbon will become the responsibility of counties when the global
emission reduction target is distributed among them under the Paris Agreement. Carbon pricing will be mainly guided by the
investment needs to drive a low carbon transition of the economy. The answer to ‘who will pay and how?’ will largely depend on
the implementation mechanism adopted. Carbon tax, allowance auction, cap-and-trade and international offsets are already
established mechanisms. Cap-and-trade and international offsets rely on demand-supply gap in the market. Under a 20C
regime, the targets will be steep and all significant emitters would have a share of the target. In such a scenario, it is unlikely
that there will be any significant supply of emission reduction under a cap-and-trade scheme or a significant supply of offsets
internationally. Carbon tax and allowance auction may offer viable mechanisms to implement a carbon price and generate
capital for investing in low carbon transition.
Biography
Bose K Varghese is the Head of Green Initiatives at Infosys Limited, India. Prior to joining Infosys, he served as a Director of Vie2Sustain Consulting LLP,
Bangalore, India, and Head of Climate Change & Sustainability practice at Ernst & Young, Bangalore, India. He holds an MS degree in Environmental Engineering
from University of Houston, Texas and a Bachelor of Technology degree in Chemical Engineering from the University of Calicut, Kerala.
Bose K Varghese, J Earth Sci Clim Change 2016, 7:9(Suppl)