As the new year has kicked off, The Climate Trust has released its prediction list of 10 carbon market trends to watch in 2016. The trends range from climate change playing a larger role in federal decision making to increased carbon market linkage and momentum in conservation finance.

Image credit: Flickr/Yann Caradec
“The Trust pays close attention to market signals throughout the year, identifying areas where we can have the greatest impact,” said Sean Penrith, executive director for The Climate Trust. “Each year, we look forward to putting together our team’s collective knowledge and sharing our industry insights.”
And the top trends….
1. Carbon pricing will play a key role for many jurisdictions worldwide as they plan to meet their emission reduction targets from the Paris negotiations. Roughly one quarter of the world’s emissions now fall under some form of carbon pricing system.
2. In Oregon, policies related to clean energy will take center stage in 2016. Importers of transportation fuels will be under obligation to comply with the state’s Clean Fuels Program in 2016. This program is designed to reduce the carbon intensity of transportation fuels 10% by 2025, by integrating more low-carbon fuels (like ethanol and biogas) into the fuel supply.
3. Climate Risk Gets Real for Private Industry. Beginning with the groundswell at Climate Week in New York in September 2015, and becoming more strident at the Paris climate summit, it is clear that the era of managing and disclosing a corporation’s exposure to climate risk has arrived.
4. Addressing climate change will play a larger role in federal decision-making and political platforms in 2016. With the energy created by the COP21 gathering in Paris still buzzing around us, a presidential campaign well underway, and a little more than a year left for members of the Obama Administration to leave their full mark on history, it seems clear that 2016 will be a year of climate action.
5. Increased U.S. carbon market linkage as states prepare for the Clean Power Plan. The final draft of the Environmental Protection Agency’s (EPA) Clean Power Plan was released in 2015, with 24 states filing a lawsuit against the plan questioning EPA’s authority. The lawsuit is unlikely to succeed. In fact, many of the states involved in the lawsuit are still drafting compliance plans; 24 other states launched a countersuit in support of the Plan; and George Bush’s EPA chief reminds the states that EPA’s authority has been upheld by the Supreme Court twice before.
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