A bilateral agreement between California and the European Union for carbon market cooperation was signed Thursday during the Global Climate Action Summit in San Francisco.
The International Emissions Trading Association (IETA) welcomed the agreement signed between the European Climate Action and Energy Commissioner Miguel Arias Canete and California Governor Jerry Brown.
California and the EU will step up the frequency of exchanges on, among other issues, how carbon markets can send near- and long-term signals for investment, address concerns over economic competitiveness and maximise the public benefits of using market revenues.
The partners will issue a report on the outcomes of these exchanges in a year.
Dirk Forrister, CEO of IETA said the agreement shows that two leading carbon markets are taking a serious look at aligning their systems.
'Their Initiative could inspire others to develop similarly aligned systems, taking advantage of the Florence Process,' he added.
The Florence Process is a forum in which regulators, together with stakeholders of emissions trading systems worldwide exchange opinions, information and apply regulatory techniques to direct European market reforms.
By Gulsen Cagatay in San Francisco
Anadolu Agency
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