Paris 'unlikely to affect EU ETS in short-term'

The Paris Agreement on climate change could provide impetus for the development of carbon markets globally, but is unlikely to raise ambition in the EU system, experts say.

The global agreement finalised on Saturday includes provisions for countries to cooperate on carbon markets by trading emission reduction units, or ‘internationally transferred mitigation outcomes’.

“This represents a huge step for carbon markets, as they now have a ‘home’ in the global climate agreement and are explicitly encouraged as tool to drive further ambition,” said Sarah Deblock of emissions trading lobby IETA.