FIRESIDE CHAT TOPIC: The vital role that transparent carbon markets will play in a net-zero carbon future
DETAILS: The world can’t get to a net-zero carbon world unless it has a benchmark to measure the costs and benefits of that quest. That is why carbon markets will play such a vital role. Lisa Street understands how the global carbon markets work.
SPEAKER: Street is the director of global carbon pricing for OPIS by IHS Markit.
BIO: Street is an expert in developing pricing solutions for compliance and voluntary carbon markets as well as refined products spot markets. Her current work focuses on bringing transparency to the voluntary carbon market through the development of benchmark indices. In 2020, her carbon team launched the world’s first daily pricing suite for voluntary carbon credits, including benchmarks for carbon credits generated by nature-based projects. In 2014, she created OPIS benchmark pricing for North America compliance markets and leads an editorial team that brings daily transparency to the California Carbon Allowances market as well as the Regional Greenhouse Gas Initiative Allowances and California Carbon Offsets markets.
KEY QUOTES FROM STREET:
“There is an understanding in the regulatory agencies that it’s going to take some time for new technologies, mechanisms, processes, behaviors to be implemented so that emissions reduction goals under that [cap-and-trade] program can be met.”
“To prevent carbon leakage, to prevent some of the producers from taking their business out of the state and moving it elsewhere where they don’t have to comply … the regulatory programs do what’s called an assistance factor or free allocation. And so in this way … the entity is getting some free allowances that will allow them a certain percentage of what they emit.”
“As we delve into the carbon market world, we can see just how differing the mindsets are across governments, across countries, across industries and even just across our people on what really should be the cost of carbon. And so, it’s a large range. And that’s just compliance.”
“Is there an opportunity to provide your clients with carbon-neutral delivery solutions? And can you do that by getting involved in the voluntary carbon market, purchasing offset credits and letting your client know that you are going to show them proof that you’re retiring credits on behalf of your vehicle miles traveled?”