Sample Materials for CSAT Paper -1 (G.S.) Pre 2013: “Environment and Ecology: The International Carbon Action Partnership (ICAP)”

Subject: Environment and Ecology
Topic: The International Carbon Action Partnership (ICAP)

THE INTERNATIONAL CARBON ACTION PARTNERSHIP (ICAP) was
founded on October 29, 2007, by a group of 15 governments in Lisbon,
Portugal. ICAP is an international cooperation forum between states and
substate regions aiming to link regional Emission Trading Schemes (ETS).
ICAP is used as an open platform exchanging experiences and linking
possibilities in specific linking topics likeMRV, carbon offsets or
Carbon-Leakage. It is a group of countries and regions that support carbon
trading and are actively developing or have developed cap-and-trade systems.
ICAP facilitates the linking of established and emerging cap-and-trade
programs by promoting consistent regulatory frameworks across national
borders.

History

The International Carbon Action Partnership (ICAP) was
founded on October 29, 2007. Leaders of more than 15 governments met in
Lisbon, Portugal to launch the establish-ment of the International Carbon
Action Partnership (ICAP). ICAP is made up of countries and regions that
have implemented or are actively pursuing the implementation of emission
trading systems (ETS). ICAP includes members from the European Union and the
European Emission Trading Scheme EU ETS), Western Climate Initiative WCI),
Regional Greenhouse Gas Initiative (RGGI), and Australia, New Zealand and
Norway. Japan and Ukraine are observers.

The Californian Governor Arnold Schwarze-negger declared
during the founding: “This first of its kind partnership will provide more
incentives for clean-tech investment and economic growth while not letting
polluters off the hook. And it will help renew the health of our planet.”

Many governments across the world have established or are
developing cap-and-trade for greenhouse gas emissions (carbon markets). They
include the European Union’s trading system (EU ETS), the Norwegian trading
programme, the New Zealand trading system (NZ ETS), the Regional Greenhouse
Gas Initiative (RGGI) in the eastern region of the United States of America
(USA), and the Western Climate Initiative (WCI), which includes western
states from the USA and Canadian provinces. There is growing interest in
other regions of the world in using carbon markets as a cost-efficient
mechanism to reduce greenhouse gas emissions, among others Japan, Mexico and
the United States. Development and implementation of carbon markets requires
cooperation, and further consideration of how the various markets can
facilitate the transition to a global low-carbon economy. The partnership
provides a forum to share experiences and knowledge. Sharing and evaluating
best practices will help ICAP members determine the extent to which their
respective programs can be supported by, and or benefit from, the ICAP
process.

ICAP was formed to contribute to the establishment of a
well-functioning global cap and trade carbon market. ICAP provides the
opportunity for member countries and regions to share best practices and
learn from each other’s experiences. Linking current and emerging carbon
markets at a global level establishes a level playing field for covered
sectors and a consistent regulatory framework across national borders.
Through this sharing, ICAP enhances the design of other market-based schemes
by ensuring compatibility of design issues at an early stage. As a result,
ICAP provides a forum to ensure capability of existing and emerging programs
and enhances the promise for development of future linked carbon markets. To
coordinate carbon market regulation an international clearinghouse should be
installed. The International Carbon Action Partnership ICAP has already
started preparing the linking of trading systems and could serve as a future
regulatory body.

General Objectives

1. Sharing best practice and learning from each others’
experiences
2. Ensuring that design compatibility issues are recognized at an early
stage
3. Facilitating future linking of trading programs.

Structure

ICAP is an open forum of governments and public
authorities working on carbon markets through cap and trade systems. While
all members and observers meet in person two times a year, the day to day
work is carried out by the ICAP Steering Committee, supported by a Project
Manager who is based in Berlin, Germany. The Project Manager is supervised
by the Chair of the ICAP Steering Committee. British Columbia has been
elected as Chair for 2009. To coordinate carbon market regulation an
international clearinghouse should be installed. The International Carbon
Action Partnership ICAP, founded in October 2007, has already started
preparing the linking of trading systems and could serve as a future
regulatory body.

Answer of Question 1: A