HM Treasury Announces Establishment Of Carbon Markets Expert Group

Exchequer Secretary to the Treasury Angela Eagle today announced the establishment of a carbon markets expert group to discuss ways of enhancing and developing the global carbon market and to act as an industry liaison for the Treasury.

Angela Eagle made the announcement at the International Carbon Markets Conference in London. The economic significance of climate change means it is critical to establish a credible international framework that can deal with climate change efficiently, promoting environmental benefits alongside economic growth and development.

Angela Eagle said:
"We all know the scale of the challenge of Climate Change, and its importance. This challenge is international, and the responses must be too. So carbon emissions need a global price, not just a price in the UK, or in Europe.

"Creating a global carbon market will, of course, be a real challenge - and we have to recognise the scale of that ambition. If we're to do it, then there's a huge role for the private sector to play. So I'm pleased to be able to announce that to help us to use the knowledge and the skills of the private sector, we are setting up a carbon markets experts group that will act as a sounding board for the Treasury, and that will discuss ways of enhancing and developing the global carbon market."

Economic Secretary and City Minister Kitty Ussher, who last month called for London to aspire to be the global centre for carbon trading, welcomed the announcement saying:

"I want our economy to not only grow strongly, but also to be green and carbon trading is the key to achieving that. It can help us address the challenge of climate change and also further strengthen London's position as a global financial centre.

"Already, the global carbon trading market is worth $30 billion a year - and we expect it to increase significantly in future. This is a new market, and a new opportunity for the UK, and for London in particular."

Adam Nathan, Director of Communications for the Carbon Markets Association said: "CMA welcomes today's conference as a way to focus finance ministries worldwide on creating an efficient global carbon market for combating climate change. Now more than ever it is important that finance ministries work in harmony with environment ministries to design a global system that delivers efficient reductions in emissions".

Background

1. In Budget 2006, the Chancellor announced a commitment to work with the financial sector to establish the High-Level Group, with senior representatives from across the financial sector, to develop and support a new strategy to promote London as the leading international financial centre. The first meeting was held at 11 Downing Street in October 2006, followed by a further meeting in May 2007.

2. The global carbon trading market is already worth $30 billion a year and is expected to increase significantly in future. The annual turnover of the environmental goods and services sector is more than £25 billion in the UK, and is expected to roughly double by 2015, creating at least 100,000 jobs.

3. Already the annual turnover of the environmental goods and services sector is more than £25 billion in the UK. By 2015 we expect that to roughly double, creating at least 100,000 jobs.

4. The International Carbon Markets Conference was hosted by the Exchequer Secretary and supported by the Carbon Markets Association. Speakers at the conference included:
   • Lord Stern, IG Patel Professor of Economics and Government, LSE
   • Halldor Thorgeirsson, Director of Sustainable Development Mechanisms, UNFCCC
   • Odin Knudsen, Managing Director, Strategy and Business Development, Environmental Products, JP Morgan
   • Paul Dawson, Head of Environment and Regulatory Affairs, Citigroup
   • Jane Ellis, Principal Administrator, Environment Directorate, OECD
   • Abyd Karmali, Managing Director and Global Head of Carbon Emissions, Merrill Lynch
   • Frank Sangster, Head of Environmental Taxes and Incentives Group, KPMG LLP
   • Paul Soffe, Associate Director, Ecosecurities
   • Anthony Hobley, Head of Climate Change and Carbon Finance, Norton Rose
   • Chris Leeds, Director of Global Emissions, Barclays Capital